☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Missouri | 43-1863181 | |||||||||||||
(State or other jurisdiction of incorporation or organization) | (I. R. S. Employer Identification No.) | |||||||||||||
6 Research Drive | (203) | 944-5500 | ||||||||||||
Shelton, | CT | 06484 | (Registrant’s telephone number, including area code) | |||||||||||
(Address of principal executive offices and zip code) |
Title of each class | Stock symbol | Name of each exchange on which registered | ||||||
Common Stock, par value $0.01 per share | EPC | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||||||
Non-accelerated filer | ☐ | (Do not check if a smaller reporting company) | Smaller reporting company | ☐ | ||||||||||
Emerging growth company | ☐ |
PART I | ||||||||
Item 1. | Business. | |||||||
Item 1A. | Risk Factors. | |||||||
Item 1B. | Unresolved Staff Comments. | |||||||
Item 2. | Properties. | |||||||
Item 3. | Legal Proceedings. | |||||||
Item 4. | Mine Safety Disclosures. | |||||||
PART | ||||||||
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. | |||||||
Item 6. | Selected Financial Data. | |||||||
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. | |||||||
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk. | |||||||
Item 8. | Financial Statements and Supplementary Data. | |||||||
Item 9. | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. | |||||||
Item 9A. | Controls and Procedures. | |||||||
Item 9B. | Other Information. | |||||||
PART III | ||||||||
Item 10. | Directors, Executive Officers and Corporate Governance. | |||||||
Item 11. | Executive Compensation. | |||||||
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. | |||||||
Item 13. | Certain Relationships and Related Transactions, and Director Independence. | |||||||
Item 14. | Principal Accounting Fees and Services. | |||||||
Part IV | ||||||||
Item 15. | Exhibits, Financial Statement Schedules. | |||||||
Signatures | ||||||||
Exhibit Index |
Name | Age | Title | ||||||
Rod R. Little | Chief Executive Officer | |||||||
Daniel J. Sullivan | Chief Financial Officer | |||||||
Anne Sophie Gaget | 50 | Chief Growth and Innovation Officer | ||||||
Paul R. Hibbert | 51 | Chief Supply Chain Officer | ||||||
John N. Hill | Chief Human Resources Officer | |||||||
Colin A. Hutchison | Chief Operating Officer | |||||||
Marisa B. Iasenza | Chief Legal Officer and Corporate Secretary | |||||||
Eric O’Toole | 53 | President, North America | ||||||
Nick Powell | 53 | President, International |
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share (2) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
July 1, 2020 to July 31, 2020 | 9,744 | $ | 30.91 | — | 10,000,000 | |||||||||||||||||||||
August 1, 2020 to August 31, 2020 | — | $ | — | — | 10,000,000 | |||||||||||||||||||||
September 1, 2020 to September 30, 2020 | — | $ | — | — | 10,000,000 |
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share (2) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number that May Yet Be Purchased Under the Plans or Programs | |||||||||
July 1, 2019 to July 31, 2019 | 17,780 | $ | 28.26 | — | 10,000,000 | ||||||||
August 1, 2019 to August 31, 2019 | — | $ | — | — | 10,000,000 | ||||||||
September 1, 2019 to September 30, 2019 | 29,580 | $ | 27.69 | — | 10,000,000 |
9/15 | 9/16 | 9/17 | 9/18 | 9/19 | 9/20 | |||||||||||||||||||||||||||||||||
Edgewell Personal Care Company | $ | 100.00 | $ | 97.45 | $ | 89.18 | $ | 56.65 | $ | 39.82 | $ | 34.17 | ||||||||||||||||||||||||||
S&P Midcap 400 | $ | 100.00 | $ | 113.39 | $ | 131.19 | $ | 147.53 | $ | 141.39 | $ | 135.97 | ||||||||||||||||||||||||||
S&P Household Products | $ | 100.00 | $ | 120.76 | $ | 121.05 | $ | 116.55 | $ | 157.88 | $ | 175.13 |
9/14 | 9/15 | 9/16 | 9/17 | 9/18 | 9/19 | |||||||||||||||||||
Edgewell Personal Care Company | $ | 100.00 | $ | 133.17 | $ | 129.77 | $ | 118.76 | $ | 75.45 | $ | 53.02 | ||||||||||||
S&P Midcap 400 | $ | 100.00 | $ | 101.40 | $ | 116.94 | $ | 137.42 | $ | 156.95 | $ | 153.04 | ||||||||||||
S&P Household Products | $ | 100.00 | $ | 94.09 | $ | 117.69 | $ | 121.10 | $ | 117.69 | $ | 164.83 |
Statements of Earnings Data | Fiscal Year | ||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
Net sales | $ | 1,949.7 | $ | 2,141.0 | $ | 2,234.4 | $ | 2,298.4 | $ | 2,362.0 | |||||||||||||||||||
Depreciation and amortization | 88.8 | 93.8 | 97.6 | 96.2 | 96.5 | ||||||||||||||||||||||||
Earnings (loss) before income taxes (2) | 87.3 | (390.3) | 163.8 | (52.9) | 219.9 | ||||||||||||||||||||||||
Net earnings (loss) | $ | 67.6 | $ | (372.2) | $ | 103.3 | $ | 5.7 | $ | 178.7 | |||||||||||||||||||
Basic earnings (loss) per share | 1.25 | (6.88) | 1.90 | 0.10 | 3.02 | ||||||||||||||||||||||||
Diluted earnings (loss) per share | 1.24 | (6.88) | 1.90 | 0.10 | 2.99 | ||||||||||||||||||||||||
Balance Sheet Data | As of September 30, | ||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
Working capital (1) | $ | 473.1 | $ | 384.8 | $ | 234.2 | $ | 661.8 | $ | 583.8 | |||||||||||||||||||
Property, plant and equipment, net | 370.9 | 396.0 | 424.1 | 453.4 | 486.1 | ||||||||||||||||||||||||
Total assets | 3,540.9 | 3,420.9 | 3,953.3 | 4,188.8 | 4,771.5 | ||||||||||||||||||||||||
Long-term debt | 1,237.9 | 1,097.8 | 1,103.8 | 1,525.4 | 1,544.2 |
Fiscal Year | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
Impairment charges | $ | — | $ | (570.0) | $ | (24.4) | $ | (319.0) | $ | (6.5) | |||||||||||||||||||
Restructuring and related costs | (38.1) | (55.6) | (39.9) | (30.3) | (38.8) | ||||||||||||||||||||||||
Acquisition and integration planning costs | (39.8) | (6.7) | (5.2) | — | — | ||||||||||||||||||||||||
Cost of early retirement of long-term debt | (26.2) | — | — | — | — | ||||||||||||||||||||||||
Gain on sale of Infant and Pet Care business | 4.1 | — | — | — | — | ||||||||||||||||||||||||
COVID-19 expenses | (4.3) | — | — | — | — | ||||||||||||||||||||||||
Sun Care reformulation costs | — | (2.8) | (25.3) | — | — | ||||||||||||||||||||||||
Feminine and Infant Care evaluation costs | (0.3) | (2.1) | — | — | — | ||||||||||||||||||||||||
Investor settlement expense | — | (0.9) | — | — | — | ||||||||||||||||||||||||
Gain on sale of Playtex gloves assets | — | — | 15.3 | — | — | ||||||||||||||||||||||||
Pension settlement expense | — | — | (5.4) | — | — | ||||||||||||||||||||||||
Spin costs | — | — | — | — | (12.0) | ||||||||||||||||||||||||
Industrial sale charges | — | — | — | — | (0.2) | ||||||||||||||||||||||||
Total | $ | (104.6) | $ | (638.1) | $ | (84.9) | $ | (349.3) | $ | (57.5) |
Statements of Earnings Data | Fiscal Year | ||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||
Net sales | $ | 2,141.0 | $ | 2,234.4 | $ | 2,298.4 | $ | 2,362.0 | $ | 2,421.2 | |||||||||
Depreciation and amortization | 93.8 | 97.6 | 96.2 | 96.5 | 91.3 | ||||||||||||||
(Loss) earnings from continuing operations before income taxes (3) | (390.3 | ) | 163.8 | (52.9 | ) | 219.9 | (458.7 | ) | |||||||||||
(Loss) earnings from continuing operations | (372.2 | ) | 103.3 | 5.7 | 178.7 | (296.1 | ) | ||||||||||||
Earnings from discontinued operations, net of tax | — | — | — | — | 20.8 | ||||||||||||||
Net (loss) earnings | $ | (372.2 | ) | $ | 103.3 | $ | 5.7 | $ | 178.7 | $ | (275.3 | ) | |||||||
Basic (loss) earnings per share: | |||||||||||||||||||
Continuing operations | $ | (6.88 | ) | $ | 1.90 | $ | 0.10 | $ | 3.02 | $ | (4.78 | ) | |||||||
Discontinued operations | — | — | — | — | 0.34 | ||||||||||||||
Net (loss) earnings | (6.88 | ) | 1.90 | 0.10 | 3.02 | (4.44 | ) | ||||||||||||
Diluted (loss) earnings per share: | |||||||||||||||||||
Continuing operations | $ | (6.88 | ) | $ | 1.90 | $ | 0.10 | $ | 2.99 | $ | (4.78 | ) | |||||||
Discontinued operations | — | — | — | — | 0.34 | ||||||||||||||
Net (loss) earnings | (6.88 | ) | 1.90 | 0.10 | 2.99 | (4.44 | ) | ||||||||||||
Cash dividends per common share (1) | $ | — | $ | — | $ | — | $ | — | $ | 1.50 | |||||||||
Balance Sheet Data | As of September 30, | ||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||
Working capital (2) | $ | 384.8 | $ | 234.2 | $ | 661.8 | $ | 583.8 | $ | 969.8 | |||||||||
Property, plant and equipment, net | 396.0 | 424.1 | 453.4 | 486.1 | 498.9 | ||||||||||||||
Total assets | 3,420.9 | 3,953.3 | 4,188.8 | 4,771.5 | 4,986.3 | ||||||||||||||
Long-term debt | 1,097.8 | 1,103.8 | 1,525.4 | 1,544.2 | 1,698.6 |
Fiscal Year | |||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||
Impairment charges | $ | (570.0 | ) | $ | (24.4 | ) | $ | (319.0 | ) | $ | (6.5 | ) | $ | (318.2 | ) | ||||
Restructuring and related costs (4) | (55.6 | ) | (39.9 | ) | (30.3 | ) | (38.8 | ) | (27.0 | ) | |||||||||
Harry’s combination and integration planning costs | (5.1 | ) | — | — | — | — | |||||||||||||
Sun Care reformulation costs | (2.8 | ) | (25.3 | ) | — | — | — | ||||||||||||
Feminine and Infant Care evaluation costs | (2.1 | ) | — | — | — | — | |||||||||||||
Jack Black acquisition and integration costs | (1.6 | ) | (5.2 | ) | — | — | — | ||||||||||||
Investor settlement expense | (0.9 | ) | — | — | — | — | |||||||||||||
Gain on sale of Playtex gloves assets | — | 15.3 | — | — | — | ||||||||||||||
Pension settlement expense | — | (5.4 | ) | — | — | — | |||||||||||||
Spin costs | — | — | — | (12.0 | ) | (142.0 | ) | ||||||||||||
Industrial sale charges | — | — | — | (0.2 | ) | (32.7 | ) | ||||||||||||
Venezuela deconsolidation charge | — | — | — | — | (79.3 | ) | |||||||||||||
Cost of early debt retirements | — | — | — | — | (59.6 | ) | |||||||||||||
Spin restructuring charges | — | — | — | — | (28.3 | ) | |||||||||||||
Total | $ | (638.1 | ) | $ | (84.9 | ) | $ | (349.3 | ) | $ | (57.5 | ) | $ | (687.1 | ) |
•Net sales of $1,949.7 decreased 8.9% from fiscal 2019, inclusive of a 0.2% increase due to the acquisition of Cremo, a 4.4% decrease due to the sale of the Infant and Pet Care business and a 0.3% decrease due to currency movements. Excluding the impact of the Cremo acquisition, the sale of the Infant and Pet Care business and currency movements, organic net sales decreased 4.4% for fiscal 2020 as compared to the prior year period, as declines primarily in Wet Shave and Sun Care products were partially offset by growth in Skin Care driven by Wet Ones and grooming products. •Net earnings for fiscal 2020 was $67.6, as compared to a net loss of $372.2 in the prior fiscal year. On an adjusted basis, as illustrated in the table below, net earnings for fiscal 2020 decreased 21.2% to $148.8. The decline was primarily driven by lower net sales and increased Selling, general and administrative expenses (“SG&A”), partially offset by improved gross margin percentage and lower Advertising and sales promotion expense (“A&P”) compared to the prior year. •Net earnings per diluted share during fiscal 2020 was $1.24 compared to a loss of $6.88 in the prior fiscal year. On an adjusted basis, as illustrated in the table below, net earnings per diluted share during fiscal 2020 were $2.73 compared to $3.48 in the prior year.
(1)Impairment charges reflect the impact of the goodwill and intangible asset impairments recorded in fiscal 2019 and 2018. Refer to Note 7 of Notes to Consolidated Financial Statements for further discussion on impairment charges. (2)Restructuring costs associated with Project Fuel includes SG&A of $13.3, $8.6, and $1.4 for fiscal 2020, 2019, and 2018, respectively, associated with certain information technology enablement expenses and incentive and retention compensation expenses for Project Fuel. Additionally, it includes Cost of products sold of $0.2 and $0.6 for fiscal 2020 and 2019, respectively, related to inventory obsolescence write-offs. (3)Includes SG&A of $39.2, $6.7, and $3.4 for fiscal 2020, 2019 and 2018, respectively, related to integration expenses associated with acquisitions and Cost of products sold of $0.6 and $1.8 related to the valuation of acquired inventory for fiscal 2020 and 2018, respectively. |
Fiscal Year | |||||||||||||||||||||||
Net Earnings | Diluted EPS | ||||||||||||||||||||||
2019 | 2018 | 2017 | 2019 | 2018 | 2017 | ||||||||||||||||||
Net (Loss) Earnings and Diluted EPS - GAAP | $ | (372.2 | ) | $ | 103.3 | $ | 5.7 | $ | (6.88 | ) | $ | 1.90 | $ | 0.10 | |||||||||
Impairment charges (1) | 570.0 | 24.4 | 319.0 | 10.54 | 0.73 | 5.55 | |||||||||||||||||
Restructuring and related costs (2) | 55.6 | 39.9 | 30.3 | 1.03 | 0.45 | 0.53 | |||||||||||||||||
Harry’s combination and integration planning costs (3) | 5.1 | — | — | 0.09 | — | — | |||||||||||||||||
Sun Care reformulation costs (4) | 2.8 | 25.3 | — | 0.05 | 0.46 | — | |||||||||||||||||
Feminine and Infant Care evaluation costs (5) | 2.1 | — | — | 0.04 | — | — | |||||||||||||||||
Jack Black acquisition and integration costs (6) | 1.6 | 5.2 | — | 0.03 | 0.10 | — | |||||||||||||||||
Investor settlement expense (7) | 0.9 | — | — | 0.02 | — | — | |||||||||||||||||
Gain on sale of Playtex gloves | — | (15.3 | ) | — | — | (0.28 | ) | — | |||||||||||||||
Pension settlement expense (8) | — | 5.4 | — | — | 0.10 | — | |||||||||||||||||
Impact of dilutive shares (9) | — | — | — | (0.01 | ) | — | — | ||||||||||||||||
Income taxes (10) | (77.1 | ) | 3.4 | (126.6 | ) | (1.43 | ) | 0.06 | (2.21 | ) | |||||||||||||
Adjusted Net Earnings and Adjusted Diluted EPS - Non-GAAP | $ | 188.8 | $ | 191.6 | $ | 228.4 | $ | 3.48 | $ | 3.52 | $ | 3.97 | |||||||||||
Weighted-average shares outstanding - Diluted | 54.1 | 54.5 | 57.5 |
Net Sales - Total Company | Net Sales - Total Company | |||||||||||||||||||||||||||||||||||
For the Years Ended September 30, | For the Years Ended September 30, | |||||||||||||||||||||||||||||||||||
2019 | %Chg | 2018 | %Chg | 2020 | %Chg | 2019 | %Chg | |||||||||||||||||||||||||||||
Net sales - prior year | $ | 2,234.4 | $ | 2,298.4 | Net sales - prior year | $ | 2,141.0 | $ | 2,234.4 | |||||||||||||||||||||||||||
Organic | (76.9 | ) | (3.4 | )% | (103.7 | ) | (4.5 | )% | Organic | (94.9) | (4.4) | % | (76.9) | (3.4) | % | |||||||||||||||||||||
Impact of Infant and Pet Care sale | Impact of Infant and Pet Care sale | (93.4) | (4.4) | % | — | — | % | |||||||||||||||||||||||||||||
Impact of Cremo acquisition | Impact of Cremo acquisition | 4.5 | 0.2 | % | — | — | % | |||||||||||||||||||||||||||||
Impact of Playtex gloves asset sale | (1.0 | ) | — | % | (13.8 | ) | (0.6 | )% | Impact of Playtex gloves asset sale | — | — | % | (1.0) | — | % | |||||||||||||||||||||
Impact of acquisitions | 17.1 | 0.8 | % | 20.0 | 0.9 | % | ||||||||||||||||||||||||||||||
Impact of Jack Black acquisition | Impact of Jack Black acquisition | — | — | % | 17.1 | 0.8 | % | |||||||||||||||||||||||||||||
Impact of currency | (32.6 | ) | (1.6 | )% | 33.5 | 1.4 | % | Impact of currency | (7.5) | (0.3) | % | (32.6) | (1.6) | % | ||||||||||||||||||||||
Net sales - current year | $ | 2,141.0 | (4.2 | )% | $ | 2,234.4 | (2.8 | )% | Net sales - current year | $ | 1,949.7 | (8.9) | % | $ | 2,141.0 | (4.2) | % |
2020 | ||||||||||||||||||||||||||||
Reported | Adjustments | Adjusted (Non-GAAP) | ||||||||||||||||||||||||||
Earnings before income taxes | Earnings before income taxes | $ | 87.3 | $ | 104.6 | $ | 191.9 | |||||||||||||||||||||
Income tax provision | Income tax provision | 19.7 | 23.4 | 43.1 | ||||||||||||||||||||||||
Net earnings | Net earnings | $ | 67.6 | $ | 81.2 | $ | 148.8 | |||||||||||||||||||||
Effective tax rate | Effective tax rate | 22.6 | % | 22.5 | % | |||||||||||||||||||||||
2019 | 2019 | |||||||||||||||||||||||||||
Reported | Adjustments | Adjusted (Non-GAAP) | Reported | Adjustments | Adjusted (Non-GAAP) | |||||||||||||||||||||||
(Loss) earnings before income taxes | $ | (390.3 | ) | $ | 638.1 | $ | 247.8 | (Loss) earnings before income taxes | $ | (390.3) | $ | 638.1 | $ | 247.8 | ||||||||||||||
Income tax (benefit) provision | (18.1 | ) | 77.1 | 59.0 | Income tax (benefit) provision | (18.1) | 77.1 | 59.0 | ||||||||||||||||||||
Net (loss) earnings | $ | (372.2 | ) | $ | 561.0 | $ | 188.8 | Net (loss) earnings | $ | (372.2) | $ | 561.0 | $ | 188.8 | ||||||||||||||
Effective tax rate | 4.6 | % | 23.8 | % | Effective tax rate | 4.6 | % | 23.8 | % | |||||||||||||||||||
2018 | 2018 | |||||||||||||||||||||||||||
Reported | Adjustments | Adjusted (Non-GAAP) | Reported | Adjustments | Adjusted (Non-GAAP) | |||||||||||||||||||||||
Earnings before income taxes | $ | 163.8 | $ | 84.9 | $ | 248.7 | Earnings before income taxes | $ | 163.8 | $ | 84.9 | $ | 248.7 | |||||||||||||||
Income tax provision | 60.5 | (3.4 | ) | 57.1 | Income tax provision | 60.5 | (3.4) | 57.1 | ||||||||||||||||||||
Net earnings | $ | 103.3 | $ | 88.3 | $ | 191.6 | Net earnings | $ | 103.3 | $ | 88.3 | $ | 191.6 | |||||||||||||||
Effective tax rate | 36.9 | % | 23.0 | % | Effective tax rate | 36.9 | % | 23.0 | % | |||||||||||||||||||
2017 | ||||||||||||||||||||||||||||
Reported | Adjustments | Adjusted (Non-GAAP) | ||||||||||||||||||||||||||
(Loss) earnings before income taxes | $ | (52.9 | ) | $ | 349.3 | $ | 296.4 | |||||||||||||||||||||
Income tax (benefit) provision | (58.6 | ) | 126.6 | 68.0 | ||||||||||||||||||||||||
Net earnings | $ | 5.7 | $ | 222.7 | $ | 228.4 | ||||||||||||||||||||||
Effective tax rate | 110.8 | % | 22.9 | % |
Net Sales - Wet Shave | Net Sales - Wet Shave | |||||||||||||||||||||||||||||||||||
For the Years Ended September 30, | For the Years Ended September 30, | |||||||||||||||||||||||||||||||||||
2019 | %Chg | 2018 | %Chg | 2020 | %Chg | 2019 | %Chg | |||||||||||||||||||||||||||||
Net sales - prior year | $ | 1,330.1 | $ | 1,375.3 | Net sales - prior year | $ | 1,250.1 | $ | 1,330.1 | |||||||||||||||||||||||||||
Organic | (54.7 | ) | (4.1 | )% | (73.5 | ) | (5.3 | )% | Organic | (83.2) | (6.7) | % | (54.7) | (4.1) | % | |||||||||||||||||||||
Impact of currency | (25.3 | ) | (1.9 | )% | 28.3 | 2.0 | % | Impact of currency | (4.6) | (0.3) | % | (25.3) | (1.9) | % | ||||||||||||||||||||||
Net sales - current year | $ | 1,250.1 | (6.0 | )% | $ | 1,330.1 | (3.3 | )% | Net sales - current year | $ | 1,162.3 | (7.0) | % | $ | 1,250.1 | (6.0) | % |
Segment Profit - Wet Shave | Segment Profit - Wet Shave | |||||||||||||||||||||||||||||||||||
For the Years Ended September 30, | For the Years Ended September 30, | |||||||||||||||||||||||||||||||||||
2019 | %Chg | 2018 | %Chg | 2020 | %Chg | 2019 | %Chg | |||||||||||||||||||||||||||||
Segment profit - prior year | $ | 265.2 | $ | 291.8 | Segment profit - prior year | $ | 246.5 | $ | 265.2 | |||||||||||||||||||||||||||
Organic | (13.4 | ) | (5.1 | )% | (33.2 | ) | (11.4 | )% | Organic | (37.9) | (15.4) | % | (13.4) | (5.1) | % | |||||||||||||||||||||
Impact of currency | (5.3 | ) | (2.0 | )% | 6.6 | 2.3 | % | Impact of currency | (2.4) | (0.9) | % | (5.3) | (2.0) | % | ||||||||||||||||||||||
Segment profit - current year | $ | 246.5 | (7.1 | )% | $ | 265.2 | (9.1 | )% | Segment profit - current year | $ | 206.2 | (16.3) | % | $ | 246.5 | (7.1) | % |
Net Sales - Sun and Skin Care | Net Sales - Sun and Skin Care | |||||||||||||||||||||||||||||||||||
For the Years Ended September 30, | For the Years Ended September 30, | |||||||||||||||||||||||||||||||||||
2019 | %Chg | 2018 | %Chg | 2020 | %Chg | 2019 | %Chg | |||||||||||||||||||||||||||||
Net sales - prior year | $ | 449.7 | $ | 440.4 | Net sales - prior year | $ | 463.1 | $ | 453.3 | |||||||||||||||||||||||||||
Organic | (0.1 | ) | — | % | (0.9 | ) | (0.2 | )% | Organic | (3.1) | (0.7) | % | (0.4) | (0.1) | % | |||||||||||||||||||||
Impact of Playtex gloves sale | (1.0 | ) | (0.2 | )% | (13.8 | ) | (3.1 | )% | ||||||||||||||||||||||||||||
Impact of acquisitions | 17.1 | 3.8 | % | 20.0 | 4.5 | % | ||||||||||||||||||||||||||||||
Impact of Cremo acquisition | Impact of Cremo acquisition | 4.5 | 1.0 | % | — | — | % | |||||||||||||||||||||||||||||
Impact of Playtex gloves asset sale | Impact of Playtex gloves asset sale | — | — | % | (1.0) | (0.2) | % | |||||||||||||||||||||||||||||
Impact of Jack Black acquisition | Impact of Jack Black acquisition | — | — | % | 17.1 | 3.8 | % | |||||||||||||||||||||||||||||
Impact of currency | (5.9 | ) | (1.4 | )% | 4.0 | 0.9 | % | Impact of currency | (2.5) | (0.5) | % | (5.9) | (1.4) | % | ||||||||||||||||||||||
Net sales - current year | $ | 459.8 | 2.2 | % | $ | 449.7 | 2.1 | % | Net sales - current year | $ | 462.0 | (0.2) | % | $ | 463.1 | 2.1 | % |
Segment Profit - Sun and Skin Care | Segment Profit - Sun and Skin Care | |||||||||||||||||||||||||||||||||||
For the Years Ended September 30, | For the Years Ended September 30, | |||||||||||||||||||||||||||||||||||
2019 | %Chg | 2018 | %Chg | 2020 | %Chg | 2019 | %Chg | |||||||||||||||||||||||||||||
Segment profit - prior year | $ | 79.9 | $ | 97.8 | Segment profit - prior year | $ | 80.4 | $ | 80.9 | |||||||||||||||||||||||||||
Organic | (4.3 | ) | (5.4 | )% | (16.5 | ) | (16.9 | )% | Organic | (11.7) | (14.6) | % | (4.8) | (5.9) | % | |||||||||||||||||||||
Impact of Playtex gloves sale | (0.3 | ) | (0.4 | )% | (1.3 | ) | (1.3 | )% | ||||||||||||||||||||||||||||
Impact of acquisitions | 5.3 | 6.6 | % | (0.6 | ) | (0.6 | )% | |||||||||||||||||||||||||||||
Impact of Cremo acquisition | Impact of Cremo acquisition | 1.1 | 1.4 | % | — | — | % | |||||||||||||||||||||||||||||
Impact of Playtex gloves asset sale | Impact of Playtex gloves asset sale | — | — | % | (0.3) | (0.4) | % | |||||||||||||||||||||||||||||
Impact of Jack Black acquisition | Impact of Jack Black acquisition | — | — | % | 5.3 | 6.6 | % | |||||||||||||||||||||||||||||
Impact of currency | (0.7 | ) | (0.8 | )% | 0.5 | 0.5 | % | Impact of currency | (0.7) | (0.8) | % | (0.7) | (0.8) | % | ||||||||||||||||||||||
Segment profit - current year | $ | 79.9 | — | % | $ | 79.9 | (18.3 | )% | Segment profit - current year | $ | 69.1 | (14.0) | % | $ | 80.4 | (0.5) | % |
Net Sales - Feminine Care | Net Sales - Feminine Care | |||||||||||||||||||||||||||||||||||
For the Years Ended September 30, | For the Years Ended September 30, | |||||||||||||||||||||||||||||||||||
2019 | %Chg | 2018 | %Chg | 2020 | %Chg | 2019 | %Chg | |||||||||||||||||||||||||||||
Net sales - prior year | $ | 329.5 | $ | 351.6 | Net sales - prior year | $ | 308.1 | $ | 329.5 | |||||||||||||||||||||||||||
Organic | (20.7 | ) | (6.3 | )% | (22.7 | ) | (6.5 | )% | Organic | (9.1) | (3.0) | % | (20.7) | (6.3) | % | |||||||||||||||||||||
Impact of currency | (0.7 | ) | (0.2 | )% | 0.6 | 0.2 | % | Impact of currency | (0.4) | (0.1) | % | (0.7) | (0.2) | % | ||||||||||||||||||||||
Net sales - current year | $ | 308.1 | (6.5 | )% | $ | 329.5 | (6.3 | )% | Net sales - current year | $ | 298.6 | (3.1) | % | $ | 308.1 | (6.5) | % |
Segment Profit - Feminine Care | Segment Profit - Feminine Care | |||||||||||||||||||||||||||||||||||
For the Years Ended September 30, | For the Years Ended September 30, | |||||||||||||||||||||||||||||||||||
2019 | %Chg | 2018 | %Chg | 2020 | %Chg | 2019 | %Chg | |||||||||||||||||||||||||||||
Segment profit - prior year | $ | 37.2 | $ | 27.0 | Segment profit - prior year | $ | 48.3 | $ | 37.2 | |||||||||||||||||||||||||||
Organic | 11.5 | 30.9 | % | 9.8 | 36.3 | % | Organic | 4.1 | 8.5 | % | 11.5 | 30.9 | % | |||||||||||||||||||||||
Impact of currency | (0.4 | ) | (1.1 | )% | 0.4 | 1.5 | % | Impact of currency | (0.1) | (0.2) | % | (0.4) | (1.1) | % | ||||||||||||||||||||||
Segment profit - current year | $ | 48.3 | 29.8 | % | $ | 37.2 | 37.8 | % | Segment profit - current year | $ | 52.3 | 8.3 | % | $ | 48.3 | 29.8 | % |
Net Sales - All Other | |||||||||||||||||||||||
For the Years Ended September 30, | |||||||||||||||||||||||
2020 | %Chg | 2019 | %Chg | ||||||||||||||||||||
Net sales - prior year | $ | 119.7 | $ | 121.5 | |||||||||||||||||||
Organic | 0.5 | 0.4 | % | (1.1) | (0.9) | % | |||||||||||||||||
Impact of Infant and Pet Care business sale | (93.4) | (78.0) | % | — | — | % | |||||||||||||||||
Impact of currency | — | — | % | (0.7) | (0.6) | % | |||||||||||||||||
Net sales - current year | $ | 26.8 | (77.6) | % | $ | 119.7 | (1.5) | % |
Net Sales - All Other | |||||||||||||
For the Years Ended September 30, | |||||||||||||
2019 | %Chg | 2018 | %Chg | ||||||||||
Net sales - prior year | $ | 125.1 | $ | 131.1 | |||||||||
Organic | (1.4 | ) | (1.1 | )% | (6.6 | ) | (5.0 | )% | |||||
Impact of currency | (0.7 | ) | (0.6 | )% | 0.6 | 0.4 | % | ||||||
Net sales - current year | $ | 123.0 | (1.7 | )% | $ | 125.1 | (4.6 | )% |
Segment Profit - All Other | Segment Profit - All Other | |||||||||||||||||||||||||||||||||||
For the Years Ended September 30, | For the Years Ended September 30, | |||||||||||||||||||||||||||||||||||
2019 | %Chg | 2018 | %Chg | 2020 | %Chg | 2019 | %Chg | |||||||||||||||||||||||||||||
Segment profit - prior year | $ | 19.5 | $ | 26.3 | Segment profit - prior year | $ | 11.7 | $ | 18.5 | |||||||||||||||||||||||||||
Organic | (6.9 | ) | (35.4 | )% | (7.2 | ) | (27.4 | )% | Organic | 0.5 | 4.3 | % | (6.4) | (34.6) | % | |||||||||||||||||||||
Impact of Infant and Pet Care business sale | Impact of Infant and Pet Care business sale | (9.1) | (77.8) | % | — | — | % | |||||||||||||||||||||||||||||
Impact of currency | (0.4 | ) | (2.0 | )% | 0.4 | 1.5 | % | Impact of currency | — | — | % | (0.4) | (2.2) | % | ||||||||||||||||||||||
Segment profit - current year | $ | 12.2 | (37.4 | )% | $ | 19.5 | (25.9 | )% | Segment profit - current year | $ | 3.1 | (73.5) | % | $ | 11.7 | (36.8) | % |
Fiscal Year | |||||||||||
2019 | 2018 | 2017 | |||||||||
General corporate and other expenses | $ | 57.3 | $ | 68.8 | $ | 76.9 | |||||
Impairment charges | 570.0 | 24.4 | 319.0 | ||||||||
Restructuring and related costs | 55.6 | 39.9 | 30.3 | ||||||||
Harry’s combination and integration planning costs | 5.1 | — | — | ||||||||
Sun Care reformulation costs | 2.8 | 25.3 | — | ||||||||
Feminine and Infant Care evaluation costs | 2.1 | — | — | ||||||||
Jack Black acquisition and integration costs | 1.6 | 5.2 | — | ||||||||
Investor settlement expense | 0.9 | — | — | ||||||||
Gain on sale of Playtex gloves assets | — | (15.3 | ) | — | |||||||
Pension settlement expense | — | 5.4 | — | ||||||||
General corporate and other expenses | $ | 695.4 | $ | 153.7 | $ | 426.2 | |||||
% of net sales | 32.5 | % | 6.9 | % | 18.5 | % |
Fiscal Year | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
General corporate and other expenses | $ | 54.9 | $ | 57.3 | $ | 68.8 | |||||||||||
Impairment charges | — | 570.0 | 24.4 | ||||||||||||||
Restructuring and related costs | 38.1 | 55.6 | 39.9 | ||||||||||||||
Acquisition and integration planning costs | 39.8 | 6.7 | 5.2 | ||||||||||||||
Cost of early retirement of long-term debt | 26.2 | — | — | ||||||||||||||
Gain on sale of Infant and Pet Care business | (4.1) | — | — | ||||||||||||||
COVID-19 expenses | 4.3 | — | — | ||||||||||||||
Sun Care reformulation costs | — | 2.8 | 25.3 | ||||||||||||||
Feminine and Infant Care evaluation costs | 0.3 | 2.1 | — | ||||||||||||||
Investor settlement expense | — | 0.9 | — | ||||||||||||||
Gain on sale of Playtex gloves assets | — | — | (15.3) | ||||||||||||||
Pension settlement expense | — | — | 5.4 | ||||||||||||||
General corporate and other expenses | $ | 159.5 | $ | 695.4 | $ | 153.7 | |||||||||||
% of net sales | 8.2 | % | 32.5 | % | 6.9 | % |
Fiscal Year | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net cash from (used by): | |||||||||||||||||
Operating activities | $ | 232.6 | $ | 190.6 | $ | 259.4 | |||||||||||
Investing activities | (196.4) | (45.5) | (118.8) | ||||||||||||||
Financing activities | (18.7) | (63.8) | (379.6) | ||||||||||||||
Effect of exchange rate changes on cash | 5.6 | (6.1) | 2.5 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | 23.1 | $ | 75.2 | $ | (236.5) |
Fiscal Year | |||||||||||
2019 | 2018 | 2017 | |||||||||
Net cash from (used by): | |||||||||||
Operating activities | $ | 190.6 | $ | 259.4 | $ | 313.6 | |||||
Investing activities | (45.5 | ) | (118.8 | ) | (84.6 | ) | |||||
Financing activities | (63.8 | ) | (379.6 | ) | (478.0 | ) | |||||
Effect of exchange rate changes on cash | (6.1 | ) | 2.5 | 13.0 | |||||||
Net increase (decrease) in cash and cash equivalents | $ | 75.2 | $ | (236.5 | ) | $ | (236.0 | ) |
Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||||||||||||
Long-term debt, including current maturities | $ | 1,250.0 | — | 500.0 | — | 750.0 | |||||||||||||||||||||||
Interest on long-term debt | 379.1 | 65.2 | 148.7 | 82.7 | 82.5 | ||||||||||||||||||||||||
Notes payable | 21.1 | 21.1 | — | — | — | ||||||||||||||||||||||||
Minimum pension funding (1) | 17.9 | 6.3 | 2.3 | 9.3 | — | ||||||||||||||||||||||||
Operating leases | 69.8 | 10.2 | 14.2 | 9.5 | 35.9 | ||||||||||||||||||||||||
Purchase obligations and other (2) (3) | 69.2 | 43.7 | 16.1 | 7.0 | 2.4 | ||||||||||||||||||||||||
Total | $ | 1,807.1 | $ | 146.5 | $ | 681.3 | $ | 108.5 | $ | 870.8 |
Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||
Long-term debt, including current maturities | $ | 1,217.0 | 117.0 | 1,100.0 | — | — | |||||||||||||
Interest on long-term debt | 130.7 | 55.5 | 75.2 | — | — | ||||||||||||||
Notes payable | 14.4 | 14.4 | — | — | — | ||||||||||||||
Minimum pension funding (1) | 41.3 | 10.4 | 15.0 | 15.9 | — | ||||||||||||||
Operating leases | 54.5 | 13.6 | 17.9 | 10.5 | 12.5 | ||||||||||||||
Purchase obligations and other (2) (3) | 80.3 | 47.3 | 16.7 | 12.0 | 4.3 | ||||||||||||||
Total | $ | 1,538.2 | $ | 258.2 | $ | 1,224.8 | $ | 38.4 | $ | 16.8 |
Summarized Statement of Operations | Twelve Months Ended September 30, 2020 | ||||
Net sales | $ | 1,305.6 | |||
Gross profit | 521.8 | ||||
Net loss | (27.9) |
Summarized Balance Sheet | September 30, 2020 | September 30, 2019 | |||||||||
Assets | |||||||||||
Current assets | $ | 419.1 | $ | 299.1 | |||||||
Non-current assets | 1,947.4 | 1,745.5 | |||||||||
Liabilities and Shareholder’s Equity | |||||||||||
Current liabilities | 283.4 | 487.5 | |||||||||
Non-current liabilities | 1,517.1 | 1,393.2 |
Discount rate increased by 25 bps | Long-term growth rate decreased by 25 bps | |||||||||||||||||
Discount rate increased by 25 bps | Long-term growth rate decreased by 25 bps | |||||||||||||||||
Feminine Care reporting unit | ||||||||||||||||||
Wet Shave reporting unit | Wet Shave reporting unit | |||||||||||||||||
Change in fair value | $ | (6 | ) | $ | (5 | ) | Change in fair value | $ | (24) | $ | (19) | |||||||
Percentage by which fair value exceeds carrying amount | 2.0 | % | 2.4 | % | Percentage by which fair value exceeds carrying amount | 1.4 | % | 1.7 | % | |||||||||
Skin Care reporting unit | Skin Care reporting unit | |||||||||||||||||
Change in fair value | Change in fair value | $ | (8) | $ | (6) | |||||||||||||
Percentage by which fair value exceeds carrying amount | Percentage by which fair value exceeds carrying amount | 1.8 | % | 2.6 | % | |||||||||||||
Banana Boat trade name | Banana Boat trade name | |||||||||||||||||
Change in fair value | Change in fair value | $ | (9) | $ | (7) | |||||||||||||
Percentage by which fair value exceeds carrying amount | Percentage by which fair value exceeds carrying amount | 2.2 | % | 3.0 | % |
Consolidated Financial Statements | |||||
Responsibility for Financial Statements | |||||
Management’s Report on Internal Control | |||||
Report of Independent Registered Public Accounting Firm | |||||
Consolidated Statements of Earnings and Comprehensive Income (Loss) | |||||
Consolidated Balance Sheets as of September 30, | |||||
Consolidated Statements of Cash Flows for the fiscal years ended September 30, 2020, 2019 | |||||
Consolidated | |||||
Notes to Consolidated Financial Statements. |
Fiscal Year | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net sales | $ | 1,949.7 | $ | 2,141.0 | $ | 2,234.4 | |||||||||||
Cost of products sold | 1,068.8 | 1,174.4 | 1,201.5 | ||||||||||||||
Gross profit | 880.9 | 966.6 | 1,032.9 | ||||||||||||||
Selling, general and administrative expense | 408.8 | 372.0 | 395.1 | ||||||||||||||
Advertising and sales promotion expense | 216.2 | 250.9 | 293.3 | ||||||||||||||
Research and development expense | 55.3 | 53.5 | 61.1 | ||||||||||||||
Restructuring charges | 24.6 | 46.4 | 38.5 | ||||||||||||||
Impairment charges | 0 | 570.0 | 24.4 | ||||||||||||||
Gain on sale of Infant and Pet Care business | (4.1) | 0 | 0 | ||||||||||||||
Gain on sale of Playtex gloves assets | 0 | 0 | (15.3) | ||||||||||||||
Pension settlement expense | 0 | 0 | 5.4 | ||||||||||||||
Interest expense associated with debt | 61.2 | 62.6 | 68.0 | ||||||||||||||
Cost of early retirement of long-term debt | 26.2 | 0 | 0 | ||||||||||||||
Other expense (income), net | 5.4 | 1.5 | (1.4) | ||||||||||||||
Earnings (loss) before income taxes | 87.3 | (390.3) | 163.8 | ||||||||||||||
Income tax provision (benefit) | 19.7 | (18.1) | 60.5 | ||||||||||||||
Net earnings (loss) | $ | 67.6 | $ | (372.2) | $ | 103.3 | |||||||||||
Basic earnings (loss) per share (Note 6): | |||||||||||||||||
Net earnings (loss) | 1.25 | (6.88) | 1.90 | ||||||||||||||
Diluted earnings (loss) per share (Note 6): | |||||||||||||||||
Net earnings (loss) | 1.24 | (6.88) | 1.90 | ||||||||||||||
Statements of Comprehensive Income (Loss): | |||||||||||||||||
Net earnings (loss) | $ | 67.6 | $ | (372.2) | $ | 103.3 | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Foreign currency translation adjustments | 29.9 | (36.7) | (11.6) | ||||||||||||||
Pension and postretirement activity, net of tax of $6.3 in 2020, ($19.4) in 2019, and ($3.0) in 2018 | 17.7 | (49.5) | (9.0) | ||||||||||||||
Deferred (loss) gain on hedging activity, net of tax of ($1.5) in 2020, ($0.7) in 2019, and ($1.7) in 2018 | (3.3) | (1.4) | 3.7 | ||||||||||||||
Total other comprehensive income (loss), net of tax | 44.3 | (87.6) | (16.9) | ||||||||||||||
Total comprehensive income (loss) | $ | 111.9 | $ | (459.8) | $ | 86.4 |
Fiscal Year | |||||||||||
2019 | 2018 | 2017 | |||||||||
Net sales | $ | 2,141.0 | $ | 2,234.4 | $ | 2,298.4 | |||||
Cost of products sold | 1,174.4 | 1,201.5 | 1,172.5 | ||||||||
Gross profit | 966.6 | 1,032.9 | 1,125.9 | ||||||||
Selling, general and administrative expense | 372.0 | 395.1 | 392.5 | ||||||||
Advertising and sales promotion expense | 250.9 | 293.3 | 318.3 | ||||||||
Research and development expense | 53.5 | 61.1 | 67.6 | ||||||||
Impairment charges | 570.0 | 24.4 | 319.0 | ||||||||
Restructuring charges | 46.4 | 38.5 | 29.6 | ||||||||
Gain on sale of Playtex gloves | — | (15.3 | ) | — | |||||||
Pension settlement expense | — | 5.4 | — | ||||||||
Interest expense associated with debt | 62.6 | 68.0 | 69.2 | ||||||||
Other expense (income), net | 1.5 | (1.4 | ) | (17.4 | ) | ||||||
(Loss) earnings before income taxes | (390.3 | ) | 163.8 | (52.9 | ) | ||||||
Income tax (benefit) provision | (18.1 | ) | 60.5 | (58.6 | ) | ||||||
Net (loss) earnings | $ | (372.2 | ) | $ | 103.3 | $ | 5.7 | ||||
Basic (loss) earnings per share (Note 7): | |||||||||||
Net (loss) earnings | (6.88 | ) | 1.90 | 0.10 | |||||||
Diluted (loss) earnings per share (Note 7): | |||||||||||
Net (loss) earnings | (6.88 | ) | 1.90 | 0.10 | |||||||
Statements of Comprehensive (Loss) Income: | |||||||||||
Net (loss) earnings | $ | (372.2 | ) | $ | 103.3 | $ | 5.7 | ||||
Other comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation adjustments | (36.7 | ) | (11.6 | ) | 39.1 | ||||||
Pension and postretirement activity, net of tax of ($19.4) in 2019, ($3.0) in 2018, and $12.7 in 2017 | (49.5 | ) | (9.0 | ) | 25.0 | ||||||
Deferred (loss) gain on hedging activity, net of tax of ($0.7) in 2019, ($1.7) in 2018, and $1.0 in 2017 | (1.4 | ) | 3.7 | 1.7 | |||||||
Total other comprehensive (loss) income, net of tax | (87.6 | ) | (16.9 | ) | 65.8 | ||||||
Total comprehensive (loss) income | $ | (459.8 | ) | $ | 86.4 | $ | 71.5 |
September 30, 2020 | September 30, 2019 | ||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 364.7 | $ | 341.6 | |||||||
Trade receivables, less allowance for doubtful accounts of $8.2 and $5.6 | 158.8 | 205.6 | |||||||||
Inventories | 314.1 | 357.2 | |||||||||
Other current assets | 146.0 | 140.0 | |||||||||
Total current assets | 983.6 | 1,044.4 | |||||||||
Property, plant and equipment, net | 370.9 | 396.0 | |||||||||
Goodwill | 1,159.7 | 1,032.8 | |||||||||
Other intangible assets, net | 928.1 | 912.9 | |||||||||
Other assets | 98.6 | 34.8 | |||||||||
Total assets | $ | 3,540.9 | $ | 3,420.9 | |||||||
Liabilities and Shareholders’ Equity | |||||||||||
Current liabilities | |||||||||||
Current maturities of long-term debt | $ | 0 | $ | 117.0 | |||||||
Notes payable | 21.1 | 14.4 | |||||||||
Accounts payable | 181.9 | 222.8 | |||||||||
Other current liabilities | 307.5 | 305.4 | |||||||||
Total current liabilities | 510.5 | 659.6 | |||||||||
Long-term debt | 1,237.9 | 1,097.8 | |||||||||
Deferred income tax liabilities | 102.5 | 101.1 | |||||||||
Other liabilities | 257.1 | 258.9 | |||||||||
Total liabilities | 2,108.0 | 2,117.4 | |||||||||
Commitments and contingencies (Note 17) | |||||||||||
Shareholders’ equity | |||||||||||
Preferred shares, $0.01 par value, 10,000,000 authorized; none issued or outstanding | 0 | 0 | |||||||||
Common shares, $0.01 par value, 300,000,000 authorized; 65,251,989 and 65,251,989 issued; 54,355,183 and 54,206,746 outstanding | 0.7 | 0.7 | |||||||||
Additional paid-in capital | 1,631.8 | 1,627.7 | |||||||||
Retained earnings | 782.4 | 714.8 | |||||||||
Common shares in treasury at cost, 10,896,806 and 11,045,243 | (790.4) | (803.8) | |||||||||
Accumulated other comprehensive loss | (191.6) | (235.9) | |||||||||
Total shareholders’ equity | 1,432.9 | 1,303.5 | |||||||||
Total liabilities and shareholders’ equity | $ | 3,540.9 | $ | 3,420.9 |
September 30, 2019 | September 30, 2018 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 341.6 | $ | 266.4 | |||
Trade receivables, less allowance for doubtful accounts of $5.6 and $6.0 | 205.6 | 226.5 | |||||
Inventories | 357.2 | 329.5 | |||||
Other current assets | 140.0 | 128.8 | |||||
Total current assets | 1,044.4 | 951.2 | |||||
Property, plant and equipment, net | 396.0 | 424.1 | |||||
Goodwill | 1,032.8 | 1,450.8 | |||||
Other intangible assets, net | 912.9 | 1,099.0 | |||||
Other assets | 34.8 | 28.2 | |||||
Total assets | $ | 3,420.9 | $ | 3,953.3 | |||
Liabilities and Shareholders’ Equity | |||||||
Current liabilities | |||||||
Current maturities of long-term debt | $ | 117.0 | $ | 184.9 | |||
Notes payable | 14.4 | 8.2 | |||||
Accounts payable | 222.8 | 238.4 | |||||
Other current liabilities | 305.4 | 285.5 | |||||
Total current liabilities | 659.6 | 717.0 | |||||
Long-term debt | 1,097.8 | 1,103.8 | |||||
Deferred income tax liabilities | 101.1 | 176.1 | |||||
Other liabilities | 258.9 | 211.8 | |||||
Total liabilities | 2,117.4 | 2,208.7 | |||||
Commitments and contingencies (Note 17) | |||||||
Shareholders’ equity | |||||||
Preferred shares, $0.01 par value, 10,000,000 authorized; none issued or outstanding | — | — | |||||
Common shares, $0.01 par value, 300,000,000 authorized; 65,251,989 and 65,251,989 issued; 54,206,746 and 54,040,386 outstanding | 0.7 | 0.7 | |||||
Additional paid-in capital | 1,627.7 | 1,628.3 | |||||
Retained earnings | 714.8 | 1,083.1 | |||||
Common shares in treasury at cost, 11,045,243 and 11,211,603 | (803.8 | ) | (819.2 | ) | |||
Accumulated other comprehensive loss | (235.9 | ) | (148.3 | ) | |||
Total shareholders’ equity | 1,303.5 | 1,744.6 | |||||
Total liabilities and shareholders’ equity | $ | 3,420.9 | $ | 3,953.3 |
Fiscal Year | |||||||||||
2019 | 2018 | 2017 | |||||||||
Cash Flow from Operating Activities | |||||||||||
Net (loss) earnings | $ | (372.2 | ) | $ | 103.3 | $ | 5.7 | ||||
Adjustments to reconcile net (loss) earnings to net cash flow from operations: | |||||||||||
Non-cash restructuring costs | — | 1.8 | 6.8 | ||||||||
Non-cash sun care reformulation costs | — | 25.3 | — | ||||||||
Depreciation and amortization | 93.8 | 97.6 | 94.4 | ||||||||
Impairment charge | 570.0 | 24.4 | 319.0 | ||||||||
(Gain) loss on sale of assets | 1.5 | (10.9 | ) | 3.8 | |||||||
Deferred income taxes | (59.6 | ) | 2.3 | (87.4 | ) | ||||||
Share-based compensation expense | 17.8 | 17.0 | 22.2 | ||||||||
Other, net | (5.7 | ) | 19.5 | (19.7 | ) | ||||||
Deferred compensation payments | (7.5 | ) | (16.7 | ) | (27.9 | ) | |||||
Changes in current assets and liabilities used in operations, net of effects of business acquisitions: | |||||||||||
Accounts receivable, net | (1.9 | ) | (10.7 | ) | 41.4 | ||||||
Inventories | (35.0 | ) | (12.3 | ) | (15.5 | ) | |||||
Other current assets | (14.7 | ) | (2.0 | ) | 22.6 | ||||||
Accounts payable | (15.1 | ) | 11.5 | 23.7 | |||||||
Other current liabilities | 19.2 | 9.3 | (75.5 | ) | |||||||
Net cash from operating activities | 190.6 | 259.4 | 313.6 | ||||||||
Cash Flow from Investing Activities | |||||||||||
Capital expenditures | (58.0 | ) | (62.0 | ) | (69.0 | ) | |||||
Collection of deferred purchase price from accounts receivable sold | 9.7 | 9.7 | — | ||||||||
Acquisitions, net of cash acquired | — | (90.2 | ) | (34.0 | ) | ||||||
Proceeds from sale of assets | 4.1 | 4.7 | 18.4 | ||||||||
Playtex glove sale | — | 19.0 | — | ||||||||
Other, net | (1.3 | ) | — | — | |||||||
Net cash used by investing activities | (45.5 | ) | (118.8 | ) | (84.6 | ) | |||||
Cash Flow from Financing Activities | |||||||||||
Cash proceeds from debt with original maturities greater than 90 days | 434.0 | 550.0 | 271.0 | ||||||||
Cash payments on debt with original maturities greater than 90 days | (324.0 | ) | (788.0 | ) | (568.0 | ) | |||||
Term Loan repayment | (185.0 | ) | — | — | |||||||
Net increase (decrease) increase in debt with original maturities of 90 days or less | 5.8 | (9.7 | ) | 2.0 | |||||||
Employee shares withheld for taxes | (3.0 | ) | (3.1 | ) | (17.4 | ) | |||||
Common shares purchased | — | (124.4 | ) | (165.4 | ) | ||||||
Net financing inflow (outflow) from the Accounts Receivable Facility | 8.4 | (4.4 | ) | — | |||||||
Other, net | — | — | (0.2 | ) | |||||||
Net cash used by financing activities | (63.8 | ) | (379.6 | ) | (478.0 | ) | |||||
Effect of exchange rate changes on cash | (6.1 | ) | 2.5 | 13.0 | |||||||
Net increase (decrease) in cash and cash equivalents | 75.2 | (236.5 | ) | (236.0 | ) | ||||||
Cash and cash equivalents, beginning of period | 266.4 | 502.9 | 738.9 | ||||||||
Cash and cash equivalents, end of period | $ | 341.6 | $ | 266.4 | $ | 502.9 | |||||
Supplemental Disclosures of Cash Flow Information: | |||||||||||
Cash paid for interest, net | $ | 60.6 | $ | 66.6 | $ | 66.4 | |||||
Cash paid for income taxes, net | 58.0 | 22.0 | 14.4 |
Fiscal Year | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Cash Flow from Operating Activities | |||||||||||||||||
Net earnings (loss) | $ | 67.6 | $ | (372.2) | $ | 103.3 | |||||||||||
Adjustments to reconcile net earnings (loss) to net cash flow from operations: | |||||||||||||||||
Depreciation and amortization | 88.8 | 93.8 | 97.6 | ||||||||||||||
Share-based compensation expense | 19.2 | 17.8 | 17.0 | ||||||||||||||
Deferred income taxes | (2.9) | (59.6) | 2.3 | ||||||||||||||
Deferred compensation payments | (8.7) | (7.5) | (16.7) | ||||||||||||||
Loss (gain) on sale of assets | 2.3 | 1.5 | (10.9) | ||||||||||||||
Gain on sale of Infant and Pet Care business | (4.1) | 0 | 0 | ||||||||||||||
Cost of early retirement of long-term debt | 26.2 | 0 | 0 | ||||||||||||||
Impairment charge | 0 | 570.0 | 24.4 | ||||||||||||||
Non-cash Sun Care reformulation costs | 0 | 0 | 25.3 | ||||||||||||||
Non-cash restructuring costs | 0 | 0 | 1.8 | ||||||||||||||
Other, net | 1.0 | (5.7) | 19.5 | ||||||||||||||
Changes in current assets and liabilities from operations, net of effects of acquisitions: | |||||||||||||||||
Accounts receivable, net | 66.3 | (1.9) | (10.7) | ||||||||||||||
Inventories | 37.1 | (35.0) | (12.3) | ||||||||||||||
Other current assets | 3.0 | (14.7) | (2.0) | ||||||||||||||
Accounts payable | (42.9) | (15.1) | 11.5 | ||||||||||||||
Other current liabilities | (20.3) | 19.2 | 9.3 | ||||||||||||||
Net cash from operating activities | 232.6 | 190.6 | 259.4 | ||||||||||||||
Cash Flow from Investing Activities | |||||||||||||||||
Capital expenditures | (47.7) | (58.0) | (62.0) | ||||||||||||||
Acquisitions, net of cash acquired | (233.6) | 0 | (90.2) | ||||||||||||||
Proceeds from sale of Infant Care business | 95.8 | 0 | 0 | ||||||||||||||
Proceeds from sale of Playtex gloves assets | 0 | 0 | 19.0 | ||||||||||||||
Investment in equity securities | (13.8) | 0 | 0 | ||||||||||||||
Proceeds from sale of other assets | 0 | 4.1 | 4.7 | ||||||||||||||
Collection of deferred purchase price from accounts receivable sold | 4.3 | 9.7 | 9.7 | ||||||||||||||
Other, net | (1.4) | (1.3) | 0 | ||||||||||||||
Net cash used by investing activities | (196.4) | (45.5) | (118.8) | ||||||||||||||
Cash Flow from Financing Activities | |||||||||||||||||
Cash proceeds from the issuance of Senior Notes due 2028 | 750.0 | 0 | 0 | ||||||||||||||
Cash payments on Senior Notes due 2021 | (600.0) | 0 | 0 | ||||||||||||||
Cash proceeds from debt with original maturities greater than 90 days | 50.0 | 434.0 | 550.0 | ||||||||||||||
Cash payments on debt with original maturities greater than 90 days | (167.0) | (324.0) | (788.0) | ||||||||||||||
Term Loan repayment | 0 | (185.0) | 0 | ||||||||||||||
Net increase (decrease) in debt with original maturities of 90 days or less | 3.0 | 5.8 | (9.7) | ||||||||||||||
Debt issuance costs for the Revolving Credit Facility | (3.6) | 0 | 0 | ||||||||||||||
Debt issuance costs for Senior Notes due 2028 | (11.7) | 0 | 0 | ||||||||||||||
Cost of early retirement of long-term debt | (26.2) | 0 | 0 | ||||||||||||||
Employee shares withheld for taxes | (2.0) | (3.0) | (3.1) | ||||||||||||||
Common shares purchased | 0 | 0 | (124.4) | ||||||||||||||
Net financing (outflow) inflow from the Accounts Receivable Facility | (11.2) | 8.4 | (4.4) | ||||||||||||||
Net cash used by financing activities | (18.7) | (63.8) | (379.6) | ||||||||||||||
Effect of exchange rate changes on cash | 5.6 | (6.1) | 2.5 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | 23.1 | 75.2 | (236.5) | ||||||||||||||
Cash and cash equivalents, beginning of period | 341.6 | 266.4 | 502.9 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 364.7 | $ | 341.6 | $ | 266.4 | |||||||||||
Supplemental Disclosures of Cash Flow Information: | |||||||||||||||||
Cash paid for interest, net | $ | 56.1 | $ | 60.6 | $ | 66.6 | |||||||||||
Cash paid for income taxes, net | 24.6 | 58.0 | 22.0 |
Common Shares | Treasury Shares | ||||||||||||||||||||||||||||||||||||||||||||||
Number | Par Value | Number | Amount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||
Balance at October 1, 2017 | 65.2 | $ | 0.7 | (9.2) | $ | (703.9) | $ | 1,623.4 | $ | 952.9 | $ | (131.4) | $ | 1,741.7 | |||||||||||||||||||||||||||||||||
Net earnings | — | 0 | — | 0 | 0 | 103.3 | 0 | 103.3 | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | 0 | — | 0 | 0 | 0 | (11.6) | (11.6) | |||||||||||||||||||||||||||||||||||||||
Pension and postretirement activity | — | 0 | — | 0 | 0 | 0 | (9.0) | (9.0) | |||||||||||||||||||||||||||||||||||||||
Deferred gain on hedging activity | — | 0 | — | 0 | 0 | 0 | 3.7 | 3.7 | |||||||||||||||||||||||||||||||||||||||
Impact of ASU 2018-02 | — | 0 | — | 0 | 0 | 17.2 | 0 | 17.2 | |||||||||||||||||||||||||||||||||||||||
Repurchase of shares | 0 | 0 | (2.1) | (124.4) | 0 | 0 | 0 | (124.4) | |||||||||||||||||||||||||||||||||||||||
Activity under share plans | 0 | 0 | 0.1 | 9.1 | 4.9 | 9.7 | 0 | 23.7 | |||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2018 | 65.2 | $ | 0.7 | (11.2) | $ | (819.2) | $ | 1,628.3 | $ | 1,083.1 | $ | (148.3) | $ | 1,744.6 | |||||||||||||||||||||||||||||||||
Net loss | — | 0 | — | 0 | 0 | (372.2) | 0 | (372.2) | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | 0 | — | 0 | 0 | 0 | (36.7) | (36.7) | |||||||||||||||||||||||||||||||||||||||
Pension and postretirement activity | — | 0 | — | 0 | 0 | 0 | (49.5) | (49.5) | |||||||||||||||||||||||||||||||||||||||
Deferred loss on hedging activity | — | 0 | — | 0 | 0 | 0 | (1.4) | (1.4) | |||||||||||||||||||||||||||||||||||||||
Impact of ASU 2016-16 | — | 0 | — | 0 | 0 | 3.9 | 0 | 3.9 | |||||||||||||||||||||||||||||||||||||||
Activity under share plans | 0 | 0 | 0.2 | 15.4 | (0.6) | 0 | 0 | 14.8 | |||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | 65.2 | $ | 0.7 | (11.0) | $ | (803.8) | $ | 1,627.7 | $ | 714.8 | $ | (235.9) | $ | 1,303.5 | |||||||||||||||||||||||||||||||||
Net earnings | — | 0 | — | 0 | 0 | 67.6 | 0 | 67.6 | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | 0 | — | 0 | 0 | 0 | 29.9 | 29.9 | |||||||||||||||||||||||||||||||||||||||
Pension and postretirement activity | — | 0 | — | 0 | 0 | 0 | 17.7 | 17.7 | |||||||||||||||||||||||||||||||||||||||
Deferred loss on hedging activity | — | 0 | — | 0 | 0 | 0 | (3.3) | (3.3) | |||||||||||||||||||||||||||||||||||||||
Activity under share plans | 0 | 0 | 0.1 | 13.4 | 4.1 | 0 | 0 | 17.5 | |||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 65.2 | $ | 0.7 | (10.9) | $ | (790.4) | $ | 1,631.8 | $ | 782.4 | $ | (191.6) | $ | 1,432.9 |
Common Shares | Treasury Shares | ||||||||||||||||||||||||||||
Number | Par Value | Number | Amount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | ||||||||||||||||||||||
Balance at October 1, 2016 | 65.2 | $ | 0.7 | (7.3 | ) | $ | (563.0 | ) | $ | 1,642.5 | $ | 946.0 | $ | (197.2 | ) | $ | 1,829.0 | ||||||||||||
Net earnings | — | — | — | — | — | 5.7 | — | 5.7 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | 39.1 | 39.1 | |||||||||||||||||||||
Pension and postretirement activity | — | — | — | — | — | — | 25.0 | 25.0 | |||||||||||||||||||||
Deferred loss on hedging activity | — | — | — | — | — | — | 1.7 | 1.7 | |||||||||||||||||||||
Repurchase of shares | — | — | (2.2 | ) | (165.4 | ) | — | — | — | (165.4 | ) | ||||||||||||||||||
Activity under share plans | — | — | 0.3 | 24.5 | (19.1 | ) | 1.2 | — | 6.6 | ||||||||||||||||||||
Balance at September 30, 2017 | 65.2 | $ | 0.7 | (9.2 | ) | $ | (703.9 | ) | $ | 1,623.4 | $ | 952.9 | $ | (131.4 | ) | $ | 1,741.7 | ||||||||||||
Net earnings | — | — | — | — | — | 103.3 | — | 103.3 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | (11.6 | ) | (11.6 | ) | |||||||||||||||||||
Pension and postretirement activity | — | — | — | — | — | — | (9.0 | ) | (9.0 | ) | |||||||||||||||||||
Deferred gain on hedging activity | — | — | — | — | — | — | 3.7 | 3.7 | |||||||||||||||||||||
Impact of ASU 2018-02 | — | — | — | — | — | 17.2 | — | 17.2 | |||||||||||||||||||||
Repurchase of shares | — | — | (2.1 | ) | (124.4 | ) | — | — | — | (124.4 | ) | ||||||||||||||||||
Activity under share plans | — | — | 0.1 | 9.1 | 4.9 | 9.7 | — | 23.7 | |||||||||||||||||||||
Balance at September 30, 2018 | 65.2 | $ | 0.7 | (11.2 | ) | $ | (819.2 | ) | $ | 1,628.3 | $ | 1,083.1 | $ | (148.3 | ) | $ | 1,744.6 | ||||||||||||
Net loss | — | — | — | — | — | (372.2 | ) | — | (372.2 | ) | |||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | (36.7 | ) | (36.7 | ) | |||||||||||||||||||
Pension and postretirement activity | — | — | — | — | — | — | (49.5 | ) | (49.5 | ) | |||||||||||||||||||
Impact of ASU 2016-16 | — | — | — | — | — | 3.9 | — | 3.9 | |||||||||||||||||||||
Deferred gain on hedging activity | — | — | — | — | — | — | (1.4 | ) | (1.4 | ) | |||||||||||||||||||
Activity under share plans | — | — | 0.2 | 15.4 | (0.6 | ) | — | — | 14.8 | ||||||||||||||||||||
Balance at September 30, 2019 | 65.2 | $ | 0.7 | (11.0 | ) | $ | (803.8 | ) | $ | 1,627.7 | $ | 714.8 | $ | (235.9 | ) | $ | 1,303.5 |
•Wet Shave consists of products sold under the Schick®, Wilkinson Sword®, Edge, Skintimate®, Shave Guard® and Personna® brands, as well as non-branded products. The Company’s wet shave products include razor handles and refillable blades, disposable shave products and shaving gels and creams. •Sun and Skin Care consists of Banana Boat® and Hawaiian Tropic® sun care products and Cremo®, Jack Black® and Bulldog® men’s skin care products, as well as Wet Ones® wipes and Playtex® household gloves until the sale of the gloves assets in October 2017. •Feminine Care includes tampons, pads and liners sold under the Playtex Gentle Glide® and Sport®, Stayfree®, Carefree® and o.b.® brands. Through December 2019, the Company also conducted business in its All Other segment which included infant and pet care products, such as bottles, cups and pacifiers, sold under the Playtex®, OrthoPro® and Binky® brand names, as well as the Diaper Genie® and Litter Genie® disposal systems. The Company completed the sale of the Infant and Pet Care business in December 2019. |
Fiscal 2020 | |||||||||||||||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Corporate | Total | ||||||||||||||||||||||||||||||
Project Fuel | |||||||||||||||||||||||||||||||||||
Severance and related benefit costs | $ | 0.2 | $ | 0.3 | $ | 0 | $ | 0 | $ | 7.6 | $ | 8.1 | |||||||||||||||||||||||
Asset impairment and accelerated depreciation | 1.7 | 0 | 0 | 0 | 0 | $ | 1.7 | ||||||||||||||||||||||||||||
Consulting, project implementation and management and other exit costs | 9.5 | 0.8 | 0.4 | 0 | 17.6 | 28.3 | |||||||||||||||||||||||||||||
Total Restructuring | $ | 11.4 | $ | 1.1 | $ | 0.4 | $ | 0 | $ | 25.2 | $ | 38.1 |
Fiscal 2019 | |||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Corporate | Total | ||||||||||||||||||
Project Fuel | |||||||||||||||||||||||
Severance and related benefit costs | $ | 12.3 | $ | 2.2 | $ | 1.2 | $ | 0.5 | $ | 7.3 | $ | 23.5 | |||||||||||
Asset impairment and accelerated depreciation | 3.1 | — | — | — | 1.1 | 4.2 | |||||||||||||||||
Consulting, project implementation and management and other exit costs | 4.8 | — | — | — | 23.1 | 27.9 | |||||||||||||||||
Total Restructuring | $ | 20.2 | $ | 2.2 | $ | 1.2 | $ | 0.5 | $ | 31.5 | $ | 55.6 |
Fiscal 2019 | |||||||||||||||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Corporate | Total | ||||||||||||||||||||||||||||||
Project Fuel | |||||||||||||||||||||||||||||||||||
Severance and related benefit costs | $ | 12.3 | $ | 2.2 | $ | 1.2 | $ | 0.5 | $ | 7.3 | $ | 23.5 | |||||||||||||||||||||||
Asset impairment and accelerated depreciation | 3.1 | 0 | 0 | 0 | 1.1 | $ | 4.2 | ||||||||||||||||||||||||||||
Consulting, project implementation and management and other exit costs | 4.8 | 0 | 0 | 0 | 23.1 | 27.9 | |||||||||||||||||||||||||||||
Total Restructuring | $ | 20.2 | $ | 2.2 | $ | 1.2 | $ | 0.5 | $ | 31.5 | $ | 55.6 |
Fiscal 2018 | |||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | Corporate | Total | |||||||||||||||
Project Fuel | |||||||||||||||||||
Severance and related benefit costs | $ | 3.1 | $ | 0.9 | $ | 1.1 | $ | 6.9 | $ | 12.1 | |||||||||
Accelerated depreciation | 1.8 | — | — | — | 1.8 | ||||||||||||||
Consulting, project implementation and management and other exit costs | 2.3 | 0.2 | — | 23.5 | 26.0 | ||||||||||||||
Total Restructuring | $ | 7.2 | $ | 1.1 | $ | 1.1 | $ | 30.4 | $ | 39.9 |
Fiscal 2018 | |||||||||||||||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Corporate | Total | ||||||||||||||||||||||||||||||
Project Fuel | |||||||||||||||||||||||||||||||||||
Severance and related benefit costs | $ | 3.1 | $ | 0.9 | $ | 1.1 | $ | 0.1 | $ | 6.9 | $ | 12.1 | |||||||||||||||||||||||
Asset impairment and accelerated depreciation | 1.8 | 0 | 0 | 0 | 0 | $ | 1.8 | ||||||||||||||||||||||||||||
Consulting, project implementation and management and other exit costs | 2.3 | 0.2 | 0 | 0 | 23.5 | 26.0 | |||||||||||||||||||||||||||||
Total Restructuring | $ | 7.2 | $ | 1.1 | $ | 1.1 | $ | 0.1 | $ | 30.4 | $ | 39.9 |
Fiscal 2017 | |||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | Corporate | Total | |||||||||||||||
2013 Restructuring | |||||||||||||||||||
Severance and related benefit costs | $ | 1.2 | $ | — | $ | 5.3 | $ | — | $ | 6.5 | |||||||||
Accelerated depreciation | 0.1 | — | 6.8 | — | 6.9 | ||||||||||||||
Consulting, program management and other exit costs | 9.0 | 0.2 | 7.0 | — | 16.2 | ||||||||||||||
Total Restructuring | $ | 10.3 | $ | 0.2 | $ | 19.1 | $ | — | $ | 29.6 |
Utilized | |||||||||||||||||||||||||||||||||||
October 1, 2019 | Charge to Income | Other (1) | Cash | Non-Cash | September 30, 2020 | ||||||||||||||||||||||||||||||
Restructuring | |||||||||||||||||||||||||||||||||||
Severance and termination related costs | $ | 8.2 | $ | 8.1 | $ | 0.1 | $ | (12.1) | $ | 0 | $ | 4.3 | |||||||||||||||||||||||
Asset impairment and accelerated depreciation | 0 | 1.7 | 0 | 0 | (1.7) | 0 | |||||||||||||||||||||||||||||
Other related costs | 1.3 | 28.3 | 0 | (28.5) | 0 | 1.1 | |||||||||||||||||||||||||||||
Total Restructuring | $ | 9.5 | $ | 38.1 | $ | 0.1 | $ | (40.6) | $ | (1.7) | $ | 5.4 |
Utilized | Utilized | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
October 1, 2018 | Charge to Income | Other (1) | Cash | Non-Cash | September 30, 2019 | October 1, 2018 | Charge to Income | Other (1) | Cash | Non-Cash | September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
Restructuring | Restructuring | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Severance and termination related costs | $ | 5.1 | $ | 23.5 | $ | — | $ | (20.4 | ) | $ | — | $ | 8.2 | Severance and termination related costs | $ | 5.1 | $ | 23.5 | $ | 0 | $ | (20.4) | $ | 0 | $ | 8.2 | ||||||||||||||||||||||||||||||||
Asset impairment and accelerated depreciation | — | 4.2 | — | — | (4.2 | ) | — | Asset impairment and accelerated depreciation | 0 | 4.2 | 0 | 0 | (4.2) | 0 | ||||||||||||||||||||||||||||||||||||||||||||
Other related costs | 2.6 | 27.9 | — | (29.2 | ) | — | 1.3 | Other related costs | 2.6 | 27.9 | 0 | (29.2) | 0 | 1.3 | ||||||||||||||||||||||||||||||||||||||||||||
Total Restructuring | $ | 7.7 | $ | 55.6 | $ | — | $ | (49.6 | ) | $ | (4.2 | ) | $ | 9.5 | Total Restructuring | $ | 7.7 | $ | 55.6 | $ | 0 | $ | (49.6) | $ | (4.2) | $ | 9.5 |
Utilized | |||||||||||||||||||||||
October 1, 2017 | Charge to Income | Other (1) | Cash | Non-Cash | September 30, 2018 | ||||||||||||||||||
Restructuring | |||||||||||||||||||||||
Severance and termination related costs | $ | 2.4 | $ | 12.1 | $ | (0.1 | ) | $ | (9.3 | ) | $ | — | $ | 5.1 | |||||||||
Asset impairment and accelerated depreciation | — | 1.8 | — | — | (1.8 | ) | — | ||||||||||||||||
Other related costs | — | 26.0 | — | (23.4 | ) | — | 2.6 | ||||||||||||||||
Total Restructuring | $ | 2.4 | $ | 39.9 | $ | (0.1 | ) | $ | (32.7 | ) | $ | (1.8 | ) | $ | 7.7 |
(1)Includes the impact of currency translation. |
Fiscal Year | |||||||||||
2019 | 2018 | 2017 | |||||||||
Currently payable: | |||||||||||
United States - Federal | $ | 16.1 | $ | 26.4 | $ | 0.5 | |||||
State | 4.1 | 1.7 | 0.2 | ||||||||
Foreign | 21.7 | 29.2 | 27.0 | ||||||||
Total current | 41.9 | 57.3 | 27.7 | ||||||||
Deferred: | |||||||||||
United States - Federal | (52.4 | ) | (4.1 | ) | (79.3 | ) | |||||
State | (7.0 | ) | 6.5 | (3.8 | ) | ||||||
Foreign | (0.6 | ) | 0.8 | (3.2 | ) | ||||||
Total deferred | (60.0 | ) | 3.2 | (86.3 | ) | ||||||
Income tax (benefit) provision | $ | (18.1 | ) | $ | 60.5 | $ | (58.6 | ) |
Fiscal Year | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Currently payable: | |||||||||||||||||
United States - Federal | $ | 1.2 | $ | 16.1 | $ | 26.4 | |||||||||||
State | 2.3 | 4.1 | 1.7 | ||||||||||||||
Foreign | 19.1 | 21.7 | 29.2 | ||||||||||||||
Total current | 22.6 | 41.9 | 57.3 | ||||||||||||||
Deferred: | |||||||||||||||||
United States - Federal | (2.8) | (52.4) | (4.1) | ||||||||||||||
State | 0.5 | (7.0) | 6.5 | ||||||||||||||
Foreign | (0.6) | (0.6) | 0.8 | ||||||||||||||
Total deferred | (2.9) | (60.0) | 3.2 | ||||||||||||||
Income tax provision (benefit) | $ | 19.7 | $ | (18.1) | $ | 60.5 |
Fiscal Year | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
United States | $ | (27.4) | $ | (415.6) | $ | 5.3 | |||||||||||
Foreign | 114.7 | 25.3 | 158.5 | ||||||||||||||
Pre-tax earnings (loss) | $ | 87.3 | $ | (390.3) | $ | 163.8 |
Fiscal Year | |||||||||||
2019 | 2018 | 2017 | |||||||||
United States | $ | (415.6 | ) | $ | 5.3 | $ | (230.5 | ) | |||
Foreign | 25.3 | 158.5 | 177.6 | ||||||||
Pre-tax (loss) earnings | $ | (390.3 | ) | $ | 163.8 | $ | (52.9 | ) |
Fiscal Year | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
Computed tax at federal statutory rate | $ | 18.3 | 21.0 | % | $ | (81.9) | 21.0 | % | $ | 40.2 | 24.5 | % | |||||||||||||||||||||||
State income taxes, net of federal tax benefit | 1.0 | 1.1 | (13.5) | 3.5 | 0.4 | 0.2 | |||||||||||||||||||||||||||||
Foreign tax less than the federal rate | (5.6) | (6.4) | 15.8 | (4.1) | (10.1) | (6.1) | |||||||||||||||||||||||||||||
Adjustments to prior years’ tax accruals | (0.5) | (0.5) | (1.5) | 0.4 | 1.2 | 0.7 | |||||||||||||||||||||||||||||
Other taxes including repatriation of foreign earnings | 8.2 | 9.4 | 7.9 | (2.0) | 3.7 | 2.3 | |||||||||||||||||||||||||||||
Other, net | 1.1 | 1.3 | 5.2 | (1.3) | (0.7) | (0.4) | |||||||||||||||||||||||||||||
Impairment | 0 | 0 | 46.8 | (12.0) | 5.7 | 3.5 | |||||||||||||||||||||||||||||
Sale of Infant and Pet Care business | 1.6 | 1.8 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||
Uncertain tax positions | (4.4) | (5.1) | (0.5) | 0.1 | (1.2) | (0.8) | |||||||||||||||||||||||||||||
Tax reform | 0 | 0 | 3.6 | (1.0) | 21.3 | 13.0 | |||||||||||||||||||||||||||||
Total | $ | 19.7 | 22.6 | % | $ | (18.1) | 4.6 | % | $ | 60.5 | 36.9 | % |
Fiscal Year | ||||||||||||||||||||
2019 | 2018 | 2017 | ||||||||||||||||||
Computed tax at federal statutory rate | $ | (81.9 | ) | 21.0 | % | $ | 40.2 | 24.5 | % | $ | (18.5 | ) | 35.0 | % | ||||||
State income taxes, net of federal tax benefit | (13.5 | ) | 3.5 | 0.4 | 0.2 | (2.0 | ) | 3.9 | ||||||||||||
Foreign tax less than the federal rate | 15.8 | (4.1 | ) | (10.1 | ) | (6.1 | ) | (38.0 | ) | 71.8 | ||||||||||
Adjustments to prior years’ tax accruals | (1.5 | ) | 0.4 | 1.2 | 0.7 | (6.2 | ) | 11.8 | ||||||||||||
Other taxes including repatriation of foreign earnings | 7.9 | (2.0 | ) | 3.7 | 2.3 | 5.0 | (9.5 | ) | ||||||||||||
Other, net | 4.7 | (1.2 | ) | (1.9 | ) | (1.2 | ) | 1.1 | (2.2 | ) | ||||||||||
Impairment | 46.8 | (12.0 | ) | 5.7 | 3.5 | — | — | |||||||||||||
Tax reform | 3.6 | (1.0 | ) | 21.3 | 13.0 | — | — | |||||||||||||
Total | $ | (18.1 | ) | 4.6 | % | $ | 60.5 | 36.9 | % | $ | (58.6 | ) | 110.8 | % |
September 30, | |||||||
2019 | 2018 | ||||||
Deferred tax liabilities: | |||||||
Depreciation and property differences | $ | (31.4 | ) | $ | (33.5 | ) | |
Intangible assets | (185.4 | ) | (244.6 | ) | |||
Other tax liabilities | (5.5 | ) | (8.1 | ) | |||
Gross deferred tax liabilities | (222.3 | ) | (286.2 | ) | |||
Deferred tax assets: | |||||||
Accrued liabilities | 49.5 | 43.3 | |||||
Deferred and share-based compensation | 16.4 | 17.6 | |||||
Tax loss carryforwards and tax credits | 8.0 | 6.8 | |||||
Postretirement benefits other than pensions | 2.5 | 4.5 | |||||
Pension plans | 59.1 | 42.2 | |||||
Inventory differences | 3.9 | 5.6 | |||||
Other tax assets | 14.1 | 12.4 | |||||
Gross deferred tax assets | 153.5 | 132.4 | |||||
Valuation allowance | (7.2 | ) | (7.0 | ) | |||
Net deferred tax liabilities | $ | (76.0 | ) | $ | (160.8 | ) |
September 30, | |||||||||||
2020 | 2019 | ||||||||||
Deferred tax liabilities: | |||||||||||
Depreciation and property differences | $ | (28.4) | $ | (31.4) | |||||||
Intangible assets | (180.1) | (185.4) | |||||||||
Lease liabilities | (11.4) | 0 | |||||||||
Other tax liabilities | (8.6) | (5.5) | |||||||||
Gross deferred tax liabilities | (228.5) | (222.3) | |||||||||
Deferred tax assets: | |||||||||||
Accrued liabilities | 47.2 | 49.5 | |||||||||
Deferred and share-based compensation | 16.1 | 16.4 | |||||||||
Tax loss carryforwards and tax credits | 11.6 | 8.0 | |||||||||
Postretirement benefits other than pensions | 1.6 | 2.5 | |||||||||
Pension plans | 53.1 | 59.1 | |||||||||
Inventory differences | 5.0 | 3.9 | |||||||||
Lease right of use assets | 11.4 | 0 | |||||||||
Other tax assets | 11.7 | 14.1 | |||||||||
Gross deferred tax assets | 157.7 | 153.5 | |||||||||
Valuation allowance | (8.5) | (7.2) | |||||||||
Net deferred tax liabilities | $ | (79.3) | $ | (76.0) |
2019 | 2018 | 2017 | |||||||||
Unrecognized tax benefits, beginning of year | $ | 20.7 | $ | 22.7 | $ | 27.9 | |||||
Additions based on current year tax positions and acquisitions | 9.4 | 1.8 | 1.8 | ||||||||
Reductions for prior year tax positions and dispositions | (0.4 | ) | (2.0 | ) | (0.6 | ) | |||||
Settlements with taxing authorities and statute expirations | (4.2 | ) | (1.8 | ) | (6.4 | ) | |||||
Unrecognized tax benefits, end of year | $ | 25.5 | $ | 20.7 | $ | 22.7 |
2020 | 2019 | 2018 | |||||||||||||||
Unrecognized tax benefits, beginning of year | $ | 25.5 | $ | 20.7 | $ | 22.7 | |||||||||||
Additions based on current year tax positions and acquisitions | 1.8 | 9.4 | 1.8 | ||||||||||||||
Reductions for prior year tax positions and dispositions | (1.7) | (0.4) | (2.0) | ||||||||||||||
Settlements with taxing authorities and statute expirations | (3.8) | (4.2) | (1.8) | ||||||||||||||
Unrecognized tax benefits, end of year | $ | 21.8 | $ | 25.5 | $ | 20.7 |
Fiscal Year | ||||||||
2019 | 2018 | 2017 | ||||||
Basic weighted-average shares outstanding | 54.1 | 54.4 | 57.3 | |||||
Effect of dilutive securities: | ||||||||
RSE awards | — | 0.1 | 0.2 | |||||
Total dilutive securities | — | 0.1 | 0.2 | |||||
Diluted weighted-average shares outstanding | 54.1 | 54.5 | 57.5 |
Fiscal Year | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Basic weighted-average shares outstanding | 54.3 | 54.1 | 54.4 | ||||||||||||||
Effect of dilutive securities: | |||||||||||||||||
RSE awards | 0.3 | 0 | 0.1 | ||||||||||||||
Total dilutive securities | 0.3 | 0 | 0.1 | ||||||||||||||
Diluted weighted-average shares outstanding | 54.6 | 54.1 | 54.5 |
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Total | |||||||||||||||||||||||||
Gross balance at October 1, 2019 | $ | 960.3 | $ | 228.3 | $ | 207.0 | $ | 69.6 | $ | 1,465.2 | |||||||||||||||||||
Accumulated goodwill impairment | (369.0) | (2.0) | 0 | (61.4) | (432.4) | ||||||||||||||||||||||||
Net balance at October 1, 2019 | $ | 591.3 | $ | 226.3 | $ | 207.0 | $ | 8.2 | $ | 1,032.8 | |||||||||||||||||||
Changes in the twelve months ended September 30, 2020 | |||||||||||||||||||||||||||||
Cremo acquisition | $ | 0 | $ | 127.7 | $ | 0 | $ | 0 | $ | 127.7 | |||||||||||||||||||
Infant and Pet Care divestiture | 0 | 0 | 0 | (8.2) | (8.2) | ||||||||||||||||||||||||
Cumulative translation adjustment | 6.9 | 0.8 | (0.3) | 0 | 7.4 | ||||||||||||||||||||||||
Gross balance at September 30, 2020 | $ | 967.2 | $ | 356.8 | $ | 206.7 | $ | 61.4 | $ | 1,592.1 | |||||||||||||||||||
Accumulated goodwill impairment | (369.0) | (2.0) | 0 | (61.4) | (432.4) | ||||||||||||||||||||||||
Net balance at September 30, 2020 | $ | 598.2 | $ | 354.8 | $ | 206.7 | $ | 0 | $ | 1,159.7 |
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Total | |||||||||||||||||||||||||
Gross balance at October 1, 2018 | $ | 968.2 | $ | 229.4 | $ | 208.0 | $ | 69.6 | $ | 1,475.2 | |||||||||||||||||||
Accumulated goodwill impairment | 0 | 0 | 0 | (24.4) | (24.4) | ||||||||||||||||||||||||
Net balance at October 1, 2018 | $ | 968.2 | $ | 229.4 | $ | 208.0 | $ | 45.2 | $ | 1,450.8 | |||||||||||||||||||
Changes in the twelve months ended September 30, 2019 | |||||||||||||||||||||||||||||
Impairment charges | $ | (369.0) | $ | (2.0) | $ | 0 | $ | (37.0) | $ | (408.0) | |||||||||||||||||||
Cumulative translation adjustment | (7.9) | (1.1) | (1.0) | 0 | (10.0) | ||||||||||||||||||||||||
Gross balance at September 30, 2019 | $ | 960.3 | $ | 228.3 | $ | 207.0 | $ | 69.6 | $ | 1,465.2 | |||||||||||||||||||
Accumulated goodwill impairment | (369.0) | (2.0) | 0 | (61.4) | (432.4) | ||||||||||||||||||||||||
Net balance at September 30, 2019 | $ | 591.3 | $ | 226.3 | $ | 207.0 | $ | 8.2 | $ | 1,032.8 |
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Total | |||||||||||||||
Gross balance at October 1, 2018 | $ | 968.2 | $ | 229.4 | $ | 208.0 | $ | 69.6 | $ | 1,475.2 | |||||||||
Accumulated goodwill impairment | — | — | — | (24.4 | ) | (24.4 | ) | ||||||||||||
Net balance at October 1, 2018 | $ | 968.2 | $ | 229.4 | $ | 208.0 | $ | 45.2 | $ | 1,450.8 | |||||||||
Changes in the twelve months ended September 30, 2019 | |||||||||||||||||||
Impairment charges | $ | (369.0 | ) | $ | (2.0 | ) | $ | — | $ | (37.0 | ) | $ | (408.0 | ) | |||||
Cumulative translation adjustment | (7.9 | ) | (1.1 | ) | (1.0 | ) | — | (10.0 | ) | ||||||||||
Gross balance at September 30, 2019 | $ | 960.3 | $ | 228.3 | $ | 207.0 | $ | 69.6 | $ | 1,465.2 | |||||||||
Accumulated goodwill impairment | (369.0 | ) | (2.0 | ) | — | (61.4 | ) | (432.4 | ) | ||||||||||
Net balance at September 30, 2019 | $ | 591.3 | $ | 226.3 | $ | 207.0 | $ | 8.2 | $ | 1,032.8 |
September 30, 2019 | September 30, 2018 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||
Trade names and brands | $ | 206.4 | $ | 35.0 | $ | 171.4 | $ | 206.7 | $ | 25.4 | $ | 181.3 | |||||||||||
Technology and patents | 78.5 | 76.4 | 2.1 | 79.0 | 75.9 | 3.1 | |||||||||||||||||
Customer related and other | 176.0 | 100.9 | 75.1 | 179.3 | 96.2 | 83.1 | |||||||||||||||||
Total amortizable intangible assets | $ | 460.9 | $ | 212.3 | $ | 248.6 | $ | 465.0 | $ | 197.5 | $ | 267.5 |
September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||
Trade names and brands | $ | 256.2 | $ | 45.4 | $ | 210.8 | $ | 206.4 | $ | 35.0 | $ | 171.4 | |||||||||||||||||||||||
Technology and patents | 79.1 | 75.3 | 3.8 | 78.5 | 76.4 | 2.1 | |||||||||||||||||||||||||||||
Customer related and other | 219.9 | 107.8 | 112.1 | 176.0 | 100.9 | 75.1 | |||||||||||||||||||||||||||||
Total amortizable intangible assets | $ | 555.2 | $ | 228.5 | $ | 326.7 | $ | 460.9 | $ | 212.3 | $ | 248.6 |
Discount rate increased by 25 bps | Long-term growth rate decreased by 25 bps | ||||||||||
Wet Shave reporting unit | |||||||||||
Change in fair value | $ | (24) | $ | (19) | |||||||
Percentage by which fair value exceeds carrying amount | 1.4 | % | 1.7 | % | |||||||
Skin Care reporting unit | |||||||||||
Change in fair value | $ | (8) | $ | (6) | |||||||
Percentage by which fair value exceeds carrying amount | 1.8 | % | 2.6 | % | |||||||
Banana Boat trade name | |||||||||||
Change in fair value | $ | (9) | $ | (7) | |||||||
Percentage by which fair value exceeds carrying amount | 2.2 | % | 3.0 | % |
September 30, 2020 | September 30, 2019 | ||||||||||
Inventories | |||||||||||
Raw materials and supplies | $ | 58.5 | $ | 55.1 | |||||||
Work in process | 71.5 | 66.5 | |||||||||
Finished products | 184.1 | 235.6 | |||||||||
Total inventories | $ | 314.1 | $ | 357.2 | |||||||
Other Current Assets | |||||||||||
Miscellaneous receivables | $ | 23.3 | $ | 14.9 | |||||||
Inventory returns receivable | 1.0 | 4.9 | |||||||||
Prepaid expenses | 64.8 | 65.0 | |||||||||
Value added tax collectible from customers | 20.4 | 23.0 | |||||||||
Income taxes receivable | 26.3 | 29.1 | |||||||||
Other | 10.2 | 3.1 | |||||||||
Total other current assets | $ | 146.0 | $ | 140.0 | |||||||
Property, Plant and Equipment | |||||||||||
Land | $ | 19.3 | $ | 18.7 | |||||||
Buildings | 142.2 | 137.4 | |||||||||
Machinery and equipment | 1,014.2 | 992.3 | |||||||||
Capitalized software costs | 53.6 | 47.8 | |||||||||
Construction in progress | 32.7 | 40.9 | |||||||||
Total gross property, plant and equipment | 1,262.0 | 1,237.1 | |||||||||
Accumulated depreciation | (891.1) | (841.1) | |||||||||
Total property, plant and equipment, net | $ | 370.9 | $ | 396.0 | |||||||
Other Current Liabilities | |||||||||||
Accrued advertising, sales promotion and allowances | $ | 49.4 | $ | 51.9 | |||||||
Accrued trade allowances | 30.8 | 26.2 | |||||||||
Accrued salaries, vacations and incentive compensation | 62.6 | 51.5 | |||||||||
Income taxes payable | 13.4 | 11.5 | |||||||||
Returns reserve | 44.8 | 60.4 | |||||||||
Restructuring reserve | 5.4 | 9.5 | |||||||||
Value added tax payable | 6.8 | 3.6 | |||||||||
Deferred compensation | 5.9 | 10.4 | |||||||||
Short term lease obligation | 9.1 | 0 | |||||||||
Customer advance payments | 1.4 | 1.7 | |||||||||
Other | 77.9 | 78.7 | |||||||||
Total other current liabilities | $ | 307.5 | $ | 305.4 | |||||||
Other Liabilities | |||||||||||
Pensions and other retirement benefits | $ | 121.0 | $ | 149.8 | |||||||
Deferred compensation | 28.2 | 30.3 | |||||||||
Long term lease obligation | 34.6 | 0 | |||||||||
Other non-current liabilities | 73.3 | 78.8 | |||||||||
Total other liabilities | $ | 257.1 | $ | 258.9 |
September 30, 2019 | September 30, 2018 | ||||||
Inventories | |||||||
Raw materials and supplies | $ | 55.1 | $ | 52.0 | |||
Work in process | 66.5 | 67.5 | |||||
Finished products | 235.6 | 210.0 | |||||
Total inventories | $ | 357.2 | $ | 329.5 | |||
Other Current Assets | |||||||
Miscellaneous receivables | $ | 19.8 | $ | 12.6 | |||
Prepaid expenses | 65.0 | 68.4 | |||||
Value added tax collectible from customers | 23.0 | 25.2 | |||||
Income taxes receivable | 29.1 | 17.3 | |||||
Other | 3.1 | 5.3 | |||||
Total other current assets | $ | 140.0 | $ | 128.8 | |||
Property, Plant and Equipment | |||||||
Land | $ | 18.7 | $ | 19.2 | |||
Buildings | 137.4 | 141.9 | |||||
Machinery and equipment | 992.3 | 964.8 | |||||
Capitalized software costs | 47.8 | 48.4 | |||||
Construction in progress | 40.9 | 59.9 | |||||
Total gross property, plant and equipment | 1,237.1 | 1,234.2 | |||||
Accumulated depreciation | (841.1 | ) | (810.1 | ) | |||
Total property, plant and equipment, net | $ | 396.0 | $ | 424.1 | |||
Other Current Liabilities | |||||||
Accrued advertising, sales promotion and allowances | $ | 51.9 | $ | 28.2 | |||
Accrued trade allowances | 26.2 | 29.9 | |||||
Accrued salaries, vacations and incentive compensation | 51.5 | 44.2 | |||||
Income taxes payable | 11.5 | 20.3 | |||||
Returns reserve | 60.4 | 58.6 | |||||
Restructuring reserve | 9.5 | 7.7 | |||||
Value added tax payable | 3.6 | 4.0 | |||||
Deferred compensation | 10.4 | 6.3 | |||||
Other | 80.4 | 86.3 | |||||
Total other current liabilities | $ | 305.4 | $ | 285.5 | |||
Other Liabilities | |||||||
Pensions and other retirement benefits | $ | 149.8 | $ | 91.5 | |||
Deferred compensation | 30.3 | 40.7 | |||||
Other non-current liabilities | 78.8 | 79.6 | |||||
Total other liabilities | $ | 258.9 | $ | 211.8 |
September 30, 2020 | ||||||||
Assets | Classification | |||||||
Right of use assets | Other assets | $ | 43.5 | |||||
Liabilities | ||||||||
Current lease liabilities | Other current liabilities | $ | 9.1 | |||||
Long-term lease liabilities | Other liabilities | 34.6 | ||||||
Total lease liabilities | $ | 43.7 | ||||||
Other information | ||||||||
Weighted-average remaining lease term (years) | 12 | |||||||
Weighted-average incremental borrowing rate | 7.2 | % |
Three Months Ended September 30, 2020 | Fiscal Year Ended September 30, 2020 | ||||||||||
Statement of Earnings | |||||||||||
Lease cost (1) | $ | 3.5 | $ | 13.9 | |||||||
Other information | |||||||||||
Leased assets obtained in exchange for new lease liabilities | $ | 0.8 | $ | 1.9 | |||||||
Cash paid for amounts included in the measurement of lease liabilities | $ | 3.0 | $ | 13.4 |
Operating Leases | |||||
Fiscal 2021 | $ | 10.2 | |||
2022 | 7.6 | ||||
2023 | 6.6 | ||||
2024 | 5.2 | ||||
2025 | 4.3 | ||||
2026 and thereafter | 35.9 | ||||
Total future minimum lease commitments | 69.8 | ||||
Less: Imputed interest | (26.1) | ||||
Present value of lease liabilities | $ | 43.7 |
Operating Leases | |||||
Fiscal 2020 | $ | 13.6 | |||
2021 | 10.5 | ||||
2022 | 7.4 | ||||
2023 | 5.9 | ||||
2024 | 4.6 | ||||
2025 and thereafter | 12.5 | ||||
Total future minimum lease commitments | $ | 54.5 |
September 30, 2020 | September 30, 2019 | ||||||||||
Senior notes, fixed interest rate of 4.7%, due 2021(1) | $ | 0 | $ | 600.0 | |||||||
Senior notes, fixed interest rate of 4.7%, due 2022 (1) (2) | 500.0 | 500.0 | |||||||||
Senior notes, fixed interest rate of 5.5%, due 2028(1) | 750.0 | 0 | |||||||||
U.S. revolving credit facility due 2025 (3) | 0 | 0 | |||||||||
U.S. revolving credit facility due 2020 (3) | 0 | 117.0 | |||||||||
Total long-term debt, including current maturities | 1,250.0 | 1,217.0 | |||||||||
Less current portion | 0 | 117.0 | |||||||||
Less unamortized debt issuance costs and discount (1) (2) | 12.1 | 2.2 | |||||||||
Total long-term debt | $ | 1,237.9 | $ | 1,097.8 |
September 30, 2019 | September 30, 2018 | ||||||
Senior notes, fixed interest rate of 4.7%, due 2021(1) | $ | 600.0 | $ | 600.0 | |||
Senior notes, fixed interest rate of 4.7%, due 2022 (1) (2) | 500.0 | 500.0 | |||||
U.S. revolving credit facility due 2020 (3) | 117.0 | 7.0 | |||||
Term loan due 2019 (1) (3) | — | 185.0 | |||||
Total long-term debt, including current maturities | 1,217.0 | 1,292.0 | |||||
Less current portion | 117.0 | 184.9 | |||||
Less unamortized debt issuance costs and discount (1) (2) | 2.2 | 3.3 | |||||
Total long-term debt | $ | 1,097.8 | $ | 1,103.8 |
As of September 30, | |||||||||||||||
Pension | Postretirement | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Change in projected benefit obligation | |||||||||||||||
Benefit obligation at beginning of year | $ | 571.3 | $ | 619.0 | $ | 8.3 | $ | 10.6 | |||||||
Service cost | 2.9 | 3.0 | — | — | |||||||||||
Interest cost | 18.5 | 16.7 | 0.3 | 0.4 | |||||||||||
Actuarial (gain) loss | 87.3 | (14.0 | ) | 1.3 | (2.1 | ) | |||||||||
Benefits paid, net | (34.4 | ) | (26.5 | ) | (0.3 | ) | (0.3 | ) | |||||||
Plan settlements | — | (20.5 | ) | — | — | ||||||||||
Expenses paid | — | (3.1 | ) | — | — | ||||||||||
Foreign currency exchange rate changes | (9.7 | ) | (3.3 | ) | (0.2 | ) | (0.3 | ) | |||||||
Projected benefit obligation at end of year | 635.9 | 571.3 | 9.4 | 8.3 | |||||||||||
Change in plan assets | |||||||||||||||
Estimated fair value of plan assets at beginning of year | 493.3 | 523.1 | — | — | |||||||||||
Actual return on plan assets | 37.8 | 14.2 | — | — | |||||||||||
Company contributions | 6.7 | 9.4 | 0.3 | 0.3 | |||||||||||
Plan settlements | — | (20.5 | ) | — | — | ||||||||||
Benefits paid | (34.4 | ) | (26.5 | ) | (0.3 | ) | (0.3 | ) | |||||||
Expenses paid | — | (3.1 | ) | — | — | ||||||||||
Foreign currency exchange rate changes | (8.4 | ) | (3.3 | ) | — | — | |||||||||
Estimated fair value of plan assets at end of year | 495.0 | 493.3 | — | — | |||||||||||
Funded status at end of year | $ | (140.9 | ) | $ | (78.0 | ) | $ | (9.4 | ) | $ | (8.3 | ) |
As of September 30, | |||||||||||||||||||||||
Pension | Postretirement | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Change in projected benefit obligation | |||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 635.9 | $ | 571.3 | $ | 9.4 | $ | 8.3 | |||||||||||||||
Service cost | 4.3 | 2.9 | 0 | 0 | |||||||||||||||||||
Interest cost | 13.5 | 18.5 | 0.3 | 0.3 | |||||||||||||||||||
Actuarial (gain) loss | 19.0 | 87.3 | (3.3) | 1.3 | |||||||||||||||||||
Benefits paid, net | (30.0) | (34.4) | (0.3) | (0.3) | |||||||||||||||||||
Plan settlements | (2.2) | 0 | 0 | 0 | |||||||||||||||||||
Expenses paid | 0 | 0 | 0 | 0 | |||||||||||||||||||
Foreign currency exchange rate changes | 11.6 | (9.7) | (0.1) | (0.2) | |||||||||||||||||||
Projected benefit obligation at end of year | 652.1 | 635.9 | 6.0 | 9.4 | |||||||||||||||||||
Change in plan assets | |||||||||||||||||||||||
Estimated fair value of plan assets at beginning of year | 495.0 | 493.3 | 0 | 0 | |||||||||||||||||||
Actual return on plan assets | 57.2 | 37.8 | 0 | 0 | |||||||||||||||||||
Company contributions | 9.7 | 6.7 | 0.3 | 0.3 | |||||||||||||||||||
Plan settlements | (2.2) | 0 | 0 | 0 | |||||||||||||||||||
Benefits paid | (30.0) | (34.4) | (0.3) | (0.3) | |||||||||||||||||||
Expenses paid | 0 | 0 | 0 | 0 | |||||||||||||||||||
Foreign currency exchange rate changes | 8.9 | (8.4) | 0 | 0 | |||||||||||||||||||
Estimated fair value of plan assets at end of year | 538.6 | 495.0 | 0 | 0 | |||||||||||||||||||
Funded status at end of year | $ | (113.5) | $ | (140.9) | $ | (6.0) | $ | (9.4) |
As of September 30, | |||||||||||||||
Pension | Postretirement | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Amounts recognized in the Consolidated Balance Sheets | |||||||||||||||
Noncurrent assets | $ | 1.0 | $ | 4.5 | $ | — | $ | — | |||||||
Current liabilities | (3.1 | ) | (1.1 | ) | (0.3 | ) | (0.3 | ) | |||||||
Noncurrent liabilities | (138.8 | ) | (81.4 | ) | (9.1 | ) | (8.0 | ) | |||||||
Net amount recognized | $ | (140.9 | ) | $ | (78.0 | ) | $ | (9.4 | ) | $ | (8.3 | ) | |||
Amounts recognized in Accumulated other comprehensive loss | |||||||||||||||
Net loss (gain) | $ | 220.7 | $ | 153.4 | $ | (3.3 | ) | $ | (4.9 | ) | |||||
Prior service credit | — | — | — | — | |||||||||||
Net amount recognized, pre-tax | $ | 220.7 | $ | 153.4 | $ | (3.3 | ) | $ | (4.9 | ) |
As of September 30, | |||||||||||||||||||||||
Pension | Postretirement | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Amounts recognized in the Consolidated Balance Sheets | |||||||||||||||||||||||
Noncurrent assets | $ | 0.4 | $ | 1.0 | $ | 0 | $ | 0 | |||||||||||||||
Current liabilities | (0.9) | (3.1) | (0.2) | (0.3) | |||||||||||||||||||
Noncurrent liabilities | (113.0) | (138.8) | (5.8) | (9.1) | |||||||||||||||||||
Net amount recognized | $ | (113.5) | $ | (140.9) | $ | (6.0) | $ | (9.4) | |||||||||||||||
Amounts recognized in Accumulated other comprehensive loss | |||||||||||||||||||||||
Net loss (gain) | $ | 199.8 | $ | 220.7 | $ | (6.5) | $ | (3.3) | |||||||||||||||
Prior service credit | 0 | 0 | 0 | 0 | |||||||||||||||||||
Net amount recognized, pre-tax | $ | 199.8 | $ | 220.7 | $ | (6.5) | $ | (3.3) |
Pension | Post- retirement | ||||||||||
Changes in plan assets and benefit obligations recognized in Other comprehensive income | |||||||||||
Net loss arising during the year | $ | (15.1) | $ | (3.3) | |||||||
Effect of exchange rates | 4.4 | 0 | |||||||||
Amounts recognized as a component of net periodic benefit cost | |||||||||||
Amortization or curtailment recognition of prior service cost | 0 | 0 | |||||||||
Amortization or settlement recognition of net (loss) gain | (10.2) | 0.1 | |||||||||
Total recognized in Other comprehensive income | $ | (20.9) | $ | (3.2) |
Pension | Post- retirement | ||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income | |||||||
Net loss arising during the year | $ | 74.8 | $ | 1.3 | |||
Effect of exchange rates | (3.2 | ) | 0.1 | ||||
Amounts recognized as a component of net periodic benefit cost | |||||||
Amortization or curtailment recognition of prior service cost | — | — | |||||
Amortization or settlement recognition of net (loss) gain | (4.3 | ) | 0.2 | ||||
Total recognized in other comprehensive income | $ | 67.3 | $ | 1.6 |
Pension | Post- retirement | ||||||||||
Fiscal 2021 | $ | 36.3 | $ | 0.2 | |||||||
Fiscal 2022 | 35.8 | 0.3 | |||||||||
Fiscal 2023 | 35.1 | 0.2 | |||||||||
Fiscal 2024 | 35.5 | 0.3 | |||||||||
Fiscal 2025 | 33.7 | 0.2 | |||||||||
Fiscal 2026 to 2030 | 161.4 | 1.2 |
Pension | Post- retirement | ||||||
Fiscal 2020 | $ | 37.4 | $ | 0.3 | |||
Fiscal 2021 | 34.6 | 0.3 | |||||
Fiscal 2022 | 34.7 | 0.3 | |||||
Fiscal 2023 | 34.2 | 0.4 | |||||
Fiscal 2024 | 34.6 | 0.4 | |||||
Fiscal 2025 to 2029 | 162.9 | 1.8 |
As of September 30, | |||||||||||
2020 | 2019 | ||||||||||
Projected benefit obligation | $ | 625.0 | $ | 609.5 | |||||||
Accumulated benefit obligation | 607.8 | 592.4 | |||||||||
Estimated fair value of plan assets | 511.1 | 467.6 |
As of September 30, | |||||||
2019 | 2018 | ||||||
Projected benefit obligation | $ | 609.5 | $ | 418.4 | |||
Accumulated benefit obligation | 592.4 | 418.4 | |||||
Estimated fair value of plan assets | 467.6 | 340.4 |
Fiscal Year | |||||||||||||||||||||||||||||||||||
Pension | Postretirement | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||
Service cost | $ | 4.3 | $ | 2.9 | $ | 3.0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||||||||||
Interest cost | 13.5 | 18.5 | 16.7 | 0.3 | 0.3 | 0.4 | |||||||||||||||||||||||||||||
Expected return on plan assets | (23.1) | (25.3) | (28.6) | 0 | 0 | 0 | |||||||||||||||||||||||||||||
Recognized net actuarial loss (gain) | 9.3 | 4.3 | 4.7 | (0.1) | (0.2) | (0.1) | |||||||||||||||||||||||||||||
Settlement loss recognized | 0.8 | 0 | 5.4 | 0 | 0 | 0 | |||||||||||||||||||||||||||||
Net periodic benefit cost (credit) | 4.8 | 0.4 | 1.2 | 0.2 | 0.1 | 0.3 |
Fiscal Year | |||||||||||||||||||||||
Pension | Postretirement | ||||||||||||||||||||||
2019 | 2018 | 2017 | 2019 | 2018 | 2017 | ||||||||||||||||||
Service cost | $ | 2.9 | $ | 3.0 | $ | 4.1 | $ | — | $ | — | $ | 0.2 | |||||||||||
Interest cost | 18.5 | 16.7 | 14.7 | 0.3 | 0.4 | 0.3 | |||||||||||||||||
Expected return on plan assets | (25.3 | ) | (28.6 | ) | (28.7 | ) | — | — | — | ||||||||||||||
Recognized net actuarial loss (gain) | 4.3 | 4.7 | 6.6 | (0.2 | ) | (0.1 | ) | (0.4 | ) | ||||||||||||||
Settlement loss recognized | — | 5.4 | 0.3 | — | — | — | |||||||||||||||||
Net periodic benefit cost (credit) | 0.4 | 1.2 | (3.0 | ) | 0.1 | 0.3 | 0.1 |
Pension | |||||
Net actuarial (loss) gain | $ | (5.0) | |||
Prior service (cost) credit | $ | 0 |
Pension | Post- retirement | ||||||
Net actuarial (loss) gain | $ | (9.2 | ) | $ | 0.1 | ||
Prior service (cost) credit | $ | — | $ | — |
Fiscal Year | Fiscal Year | |||||||||||||||||||||||||||||||||||||||||||||||||||
Pension | Postretirement | Pension | Postretirement | |||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2019 | 2018 | 2017 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||
Plan obligations: | Plan obligations: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 2.5 | % | 3.7 | % | 3.3 | % | 3.0 | % | 4.0 | % | 3.7 | % | Discount rate | 2.1 | % | 2.5 | % | 3.7 | % | 2.8 | % | 3.0 | % | 4.0 | % | |||||||||||||||||||||||||||
Compensation increase rate | 2.5 | % | 2.5 | % | 2.5 | % | N/A | N/A | N/A | Compensation increase rate | 2.5 | % | 2.5 | % | 2.5 | % | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||
Net periodic benefit cost: | Net periodic benefit cost: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 3.7 | % | 3.3 | % | 3.0 | % | 4.0 | % | 3.7 | % | 2.8 | % | Discount rate | 2.5 | % | 3.7 | % | 3.3 | % | 3.0 | % | 4.0 | % | 3.7 | % | |||||||||||||||||||||||||||
Expected long-term rate of return on plan assets | 5.2 | % | 6.1 | % | 6.5 | % | N/A | N/A | N/A | Expected long-term rate of return on plan assets | 4.8 | % | 5.2 | % | 6.1 | % | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||
Compensation increase rate | 2.5 | % | 2.5 | % | 2.5 | % | N/A | N/A | N/A | Compensation increase rate | 2.5 | % | 2.5 | % | 2.5 | % | N/A | N/A | N/A |
As of September 30, 2020 | |||||||||||||||||
Pension assets at estimated fair value | Level 1 | Level 2 | Total | ||||||||||||||
Equity | |||||||||||||||||
U.S. equity | $ | 96.9 | $ | 0 | $ | 96.9 | |||||||||||
International equity | 68.7 | 0 | 68.7 | ||||||||||||||
Debt | |||||||||||||||||
U.S. government | 0 | 191.7 | 191.7 | ||||||||||||||
Other government | 0 | 1.4 | 1.4 | ||||||||||||||
Corporate | 65.3 | 2.1 | 67.4 | ||||||||||||||
Cash and cash equivalents | 8.4 | 1.6 | 10.0 | ||||||||||||||
Other | 1.0 | 14.0 | 15.0 | ||||||||||||||
Total, excluding investments valued at net asset value (“NAV”) | $ | 240.3 | $ | 210.8 | $ | 451.1 | |||||||||||
Investments valued at NAV | 87.5 | ||||||||||||||||
Total | $ | 240.3 | $ | 210.8 | $ | 538.6 |
As of September 30, 2019 | As of September 30, 2019 | |||||||||||||||||||||||||||
Pension assets at estimated fair value | Level 1 | Level 2 | Total | Pension assets at estimated fair value | Level 1 | Level 2 | Total | |||||||||||||||||||||
Equity | Equity | |||||||||||||||||||||||||||
U.S. equity | $ | 79.0 | $ | — | $ | 79.0 | U.S. equity | $ | 79.0 | $ | 0 | $ | 79.0 | |||||||||||||||
International equity | 62.1 | — | 62.1 | International equity | 62.1 | 0 | 62.1 | |||||||||||||||||||||
Debt | Debt | |||||||||||||||||||||||||||
U.S. government | — | 182.1 | 182.1 | U.S. government | 0 | 182.1 | 182.1 | |||||||||||||||||||||
Other government | — | 2.9 | 2.9 | Other government | 0 | 2.9 | 2.9 | |||||||||||||||||||||
Corporate | 61.1 | 1.4 | 62.5 | Corporate | 61.1 | 1.4 | 62.5 | |||||||||||||||||||||
Cash and cash equivalents | 10.3 | 0.6 | 10.9 | Cash and cash equivalents | 10.3 | 0.6 | 10.9 | |||||||||||||||||||||
Other | 0.5 | 16.5 | 17.0 | Other | 0.5 | 16.5 | 17.0 | |||||||||||||||||||||
Total, excluding investments valued at net asset value (“NAV”) | $ | 213.0 | $ | 203.5 | $ | 416.5 | ||||||||||||||||||||||
Total, excluding investments valued at NAV | Total, excluding investments valued at NAV | $ | 213.0 | $ | 203.5 | $ | 416.5 | |||||||||||||||||||||
Investments valued at NAV | 78.5 | Investments valued at NAV | 78.5 | |||||||||||||||||||||||||
Total | $ | 213.0 | $ | 203.5 | $ | 495.0 | Total | $ | 213.0 | $ | 203.5 | $ | 495.0 |
As of September 30, 2018 | |||||||||||
Pension assets at estimated fair value | Level 1 | Level 2 | Total | ||||||||
Equity | |||||||||||
U.S. equity | $ | 82.5 | $ | — | $ | 82.5 | |||||
International equity | 68.1 | — | 68.1 | ||||||||
Debt | |||||||||||
U.S. government | — | 172.1 | 172.1 | ||||||||
Other government | — | 2.0 | 2.0 | ||||||||
Corporate | 61.5 | 1.3 | 62.8 | ||||||||
Cash and cash equivalents | 3.5 | 1.3 | 4.8 | ||||||||
Other | — | 15.6 | 15.6 | ||||||||
Total, excluding investments valued at NAV | $ | 215.6 | $ | 192.3 | $ | 407.9 | |||||
Investments valued at NAV | 85.4 | ||||||||||
Total | $ | 215.6 | $ | 192.3 | $ | 493.3 |
As of September 30, | |||||||||||
2020 | 2019 | ||||||||||
Pension assets valued at NAV estimated at fair value | |||||||||||
Equity | |||||||||||
U.S. equity | $ | 10.2 | $ | 9.5 | |||||||
International equity | 77.3 | 69.0 | |||||||||
Total investments valued at NAV | $ | 87.5 | $ | 78.5 |
As of September 30, | |||||||
2019 | 2018 | ||||||
Pension assets valued at NAV estimated at fair value | |||||||
Equity | |||||||
U.S. equity | $ | 9.5 | $ | 11.0 | |||
International equity | 69.0 | 74.4 | |||||
Total investments valued at NAV | $ | 78.5 | $ | 85.4 |
Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | |||||||||
Outstanding on October 1, 2018 | 0.5 | $ | 88.77 | |||||||||
Granted | 0.1 | 42.99 | ||||||||||
Canceled | (0.1 | ) | 59.34 | |||||||||
Exercised | — | — | ||||||||||
Outstanding on September 30, 2019 | 0.5 | $ | 82.53 | 6.8 | $ | — | ||||||
Vested and unvested expected to vest as of September 30, 2019 | 0.5 | $ | 82.53 | 6.8 | $ | — | ||||||
Exercisable on September 30, 2019 | 0.4 | 91.95 |
Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | ||||||||||||||||||||
Outstanding as of October 1, 2019 | 0.5 | $ | 82.53 | ||||||||||||||||||||
Granted | 0.2 | 31.44 | |||||||||||||||||||||
Canceled | 0 | 0 | |||||||||||||||||||||
Exercised | 0 | 0 | |||||||||||||||||||||
Outstanding as of September 30, 2020 | 0.7 | $ | 67.90 | 6.7 | $ | 0 | |||||||||||||||||
Vested and unvested expected to vest as of September 30, 2020 | 0.7 | $ | 67.90 | 6.7 | $ | 0 | |||||||||||||||||
Exercisable as of September 30, 2020 | 0.4 | 87.83 |
2020 | 2019 | ||||||||||
Weighted-average fair value per share option | $ | 9.33 | $ | 13.02 | |||||||
Expected volatility | 27.00 | % | 24.00 | % | |||||||
Risk-free interest rate | 1.66 | % | 2.95 | % | |||||||
Expected share option life (in years) | 6.0 | 6.0 | |||||||||
Dividend yield | 0 | % | 0 | % |
2019 | 2018 | ||||||
Weighted-average fair value per share option | $ | 13.02 | $ | 16.29 | |||
Expected volatility | 24.00 | % | 23.00 | % | |||
Risk-free interest rate | 2.95 | % | 2.27 | % | |||
Expected share option life (in years) | 6.0 | 6.0 | |||||
Dividend yield | — | % | — | % |
Shares | Weighted-Average Grant Date Estimated Fair Value | ||||||||||
Non-vested at October 1, 2019 | 1.1 | $ | 48.85 | ||||||||
Granted | 1.1 | 28.58 | |||||||||
Vested | (0.2) | 50.76 | |||||||||
Canceled | (0.1) | 53.41 | |||||||||
Non-vested at September 30, 2020 | 1.9 | 36.77 |
Shares | Weighted-Average Grant Date Estimated Fair Value | |||||
Non-vested at October 1, 2018 | 0.6 | $ | 64.56 | |||
Granted | 1.0 | 42.93 | ||||
Vested | (0.2 | ) | 68.28 | |||
Canceled | (0.3 | ) | 45.77 | |||
Non-vested at September 30, 2019 | 1.1 | 48.85 |
Foreign Currency Translation Adjustments | Pension and Post-retirement Activity | Hedging Activity | Total | ||||||||||||||||||||
Balance at October 1, 2018 | $ | (40.6) | $ | (110.3) | $ | 2.6 | $ | (148.3) | |||||||||||||||
OCI before reclassifications (1) | (36.7) | (52.5) | 1.8 | (87.4) | |||||||||||||||||||
Reclassifications to earnings | 0 | 3.0 | (3.2) | (0.2) | |||||||||||||||||||
Balance at September 30, 2019 | (77.3) | (159.8) | 1.2 | (235.9) | |||||||||||||||||||
OCI before reclassifications (1) | 29.9 | 10.4 | (1.8) | 38.5 | |||||||||||||||||||
Reclassifications to earnings | 0 | 7.3 | (1.5) | 5.8 | |||||||||||||||||||
Balance at September 30, 2020 | $ | (47.4) | $ | (142.1) | $ | (2.1) | $ | (191.6) |
Foreign Currency Translation Adjustments | Pension and Post-retirement Activity | Hedging Activity | Total | ||||||||||||
Balance at October 1, 2017 | $ | (29.0 | ) | $ | (101.3 | ) | $ | (1.1 | ) | $ | (131.4 | ) | |||
OCI before reclassifications (1) | (11.6 | ) | 0.9 | 2.6 | (8.1 | ) | |||||||||
Reclassifications to earnings | — | 7.3 | 1.1 | 8.4 | |||||||||||
Adoption of ASU 2018-02 | — | (17.2 | ) | — | (17.2 | ) | |||||||||
Balance at September 30, 2018 | (40.6 | ) | (110.3 | ) | 2.6 | (148.3 | ) | ||||||||
OCI before reclassifications (1) | (36.7 | ) | (52.5 | ) | 1.8 | (87.4 | ) | ||||||||
Reclassifications to earnings | — | 3.0 | (3.2 | ) | (0.2 | ) | |||||||||
Balance at September 30, 2019 | $ | (77.3 | ) | $ | (159.8 | ) | $ | 1.2 | $ | (235.9 | ) |
Fiscal Year | ||||||||||||||||||||
Details of AOCI Components | 2020 | 2019 | Affected Line Item in the Consolidated Statement of Earnings | |||||||||||||||||
Gains and losses on cash flow hedges | ||||||||||||||||||||
Foreign exchange contracts | $ | 2.1 | $ | 4.8 | Other expense (income), net | |||||||||||||||
2.1 | 4.8 | Total before tax | ||||||||||||||||||
0.6 | 1.6 | Income tax provision (benefit) | ||||||||||||||||||
$ | 1.5 | $ | 3.2 | Net of tax | ||||||||||||||||
Amortization of defined benefit pension and postretirement items | ||||||||||||||||||||
Prior service costs | $ | 0 | $ | 0 | (1) | |||||||||||||||
Actuarial losses | (9.3) | (4.1) | (1) | |||||||||||||||||
Settlements | (0.8) | 0 | (1) | |||||||||||||||||
(10.1) | (4.1) | Total before tax | ||||||||||||||||||
(2.8) | (1.1) | Tax expense (benefit) | ||||||||||||||||||
$ | (7.3) | $ | (3.0) | Net of tax | ||||||||||||||||
Total reclassifications for the period | $ | (5.8) | $ | 0.2 | Net of tax |
Fiscal Year | ||||||||||
Details of AOCI Components | 2019 | 2018 | Affected Line Item in the Consolidated Statements of Earnings | |||||||
Gains and losses on cash flow hedges | ||||||||||
Foreign exchange contracts | $ | 4.8 | $ | (1.5 | ) | Other expense (income), net | ||||
4.8 | (1.5 | ) | Total before tax | |||||||
1.6 | (0.4 | ) | Tax expense (benefit) | |||||||
$ | 3.2 | $ | (1.1 | ) | Net of tax | |||||
Amortization of defined benefit pension and postretirement items | ||||||||||
Prior service costs | $ | — | $ | — | (1) | |||||
Actuarial losses | (4.1 | ) | (4.5 | ) | (1) | |||||
Settlements | — | (5.4 | ) | (1) | ||||||
(4.1 | ) | (9.9 | ) | Total before tax | ||||||
(1.1 | ) | (2.6 | ) | Tax expense (benefit) | ||||||
$ | (3.0 | ) | $ | (7.3 | ) | Net of tax | ||||
Total reclassifications for the period | $ | 0.2 | $ | (8.4 | ) | Net of tax |
Fair Value of (Liability) Asset (1) | |||||||||||
September 30, 2020 | September 30, 2019 | ||||||||||
Derivatives designated as cash flow hedging relationships: | |||||||||||
Foreign currency contracts | $ | (3.0) | $ | 1.7 | |||||||
Derivatives not designated as cash flow hedging relationships: | |||||||||||
Foreign currency contracts | $ | (0.6) | $ | 0.4 |
Fair Value of Asset (Liability) (1) | |||||||
September 30, 2019 | September 30, 2018 | ||||||
Derivatives designated as cash flow hedging relationships: | |||||||
Foreign currency contracts | $ | 1.7 | $ | 3.9 | |||
Derivatives not designated as cash flow hedging relationships: | |||||||
Foreign currency contracts | $ | 0.4 | $ | 1.3 |
Fiscal Year | |||||||||||
2019 | 2018 | 2017 | |||||||||
Derivatives designated as cash flow hedging relationships: | |||||||||||
Foreign currency contracts | |||||||||||
Gain recognized in OCI (1) | $ | 2.7 | $ | 3.9 | $ | 5.4 | |||||
Gain (loss) reclassified from AOCI into income (effective portion) (1) (2) | 4.8 | (1.5 | ) | 2.7 | |||||||
Derivatives not designated as cash flow hedging relationships: | |||||||||||
Foreign currency contracts | |||||||||||
Gain (loss) recognized in income (2) | $ | (1.2 | ) | $ | 1.7 | $ | 2.4 |
Fiscal Year | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Derivatives designated as cash flow hedging relationships: | |||||||||||||||||
Foreign currency contracts | |||||||||||||||||
(Loss) gain recognized in OCI (1) | $ | (2.7) | $ | 2.7 | $ | 3.9 | |||||||||||
Gain (loss) reclassified from AOCI into income (effective portion) (1) (2) | 2.1 | 4.8 | (1.5) | ||||||||||||||
Derivatives not designated as cash flow hedging relationships: | |||||||||||||||||
Foreign currency contracts | |||||||||||||||||
(Loss) gain recognized in income (2) | $ | (0.5) | $ | (1.2) | $ | 1.7 |
As of September 30, 2020 | As of September 30, 2019 | ||||||||||||||||||||||
Assets (1) | Liabilities (2) | Assets (1) | Liabilities (2) | ||||||||||||||||||||
Foreign currency contracts | |||||||||||||||||||||||
Gross amounts of recognized assets (liabilities) | $ | 0 | $ | (3.7) | $ | 2.4 | $ | (0.5) | |||||||||||||||
Gross amounts offset in the balance sheet | 0 | 0.1 | 0 | 0.2 | |||||||||||||||||||
Net amounts of assets (liabilities) presented in the balance sheet | $ | 0 | $ | (3.6) | $ | 2.4 | $ | (0.3) |
As of September 30, 2019 | As of September 30, 2018 | ||||||||||||||
Assets (1) | Liabilities (2) | Assets (1) | Liabilities (2) | ||||||||||||
Foreign currency contracts | |||||||||||||||
Gross amounts of recognized assets (liabilities) | $ | 2.4 | $ | (0.5 | ) | $ | 5.3 | $ | — | ||||||
Gross amounts offset in the balance sheet | — | 0.2 | (0.1 | ) | — | ||||||||||
Net amounts of assets (liabilities) presented in the balance sheet | $ | 2.4 | $ | (0.3 | ) | $ | 5.2 | $ | — |
As of September 30, | |||||||||||
2020 | 2019 | ||||||||||
(Liabilities) Assets at estimated fair value: | |||||||||||
Deferred compensation | $ | (33.9) | $ | (40.6) | |||||||
Derivatives - foreign currency contracts | (3.6) | 2.1 | |||||||||
Net liabilities at estimated fair value | $ | (37.5) | $ | (38.5) |
As of September 30, | |||||||
2019 | 2018 | ||||||
Assets (Liabilities) at estimated fair value: | |||||||
Deferred compensation | $ | (40.6 | ) | $ | (46.9 | ) | |
Derivatives - foreign currency contracts | 2.1 | 5.2 | |||||
Net liabilities at estimated fair value | $ | (38.5 | ) | $ | (41.7 | ) |
Fiscal Year | |||||||||||
2019 | 2018 | 2017 | |||||||||
Net Sales | |||||||||||
Wet Shave | $ | 1,250.1 | $ | 1,330.1 | $ | 1,375.3 | |||||
Sun and Skin Care | 459.8 | 449.7 | 440.4 | ||||||||
Feminine Care | 308.1 | 329.5 | 351.6 | ||||||||
All Other | 123.0 | 125.1 | 131.1 | ||||||||
Total net sales | $ | 2,141.0 | $ | 2,234.4 | $ | 2,298.4 | |||||
Segment Profit | |||||||||||
Wet Shave | $ | 246.5 | $ | 265.2 | $ | 291.8 | |||||
Sun and Skin Care | 79.9 | 79.9 | 97.8 | ||||||||
Feminine Care | 48.3 | 37.2 | 27.0 | ||||||||
All Other | 12.2 | 19.5 | 26.3 | ||||||||
Total segment profit | 386.9 | 401.8 | 442.9 | ||||||||
General corporate and other expenses | (57.3 | ) | (68.8 | ) | (76.9 | ) | |||||
Impairment charges | (570.0 | ) | (24.4 | ) | (319.0 | ) | |||||
Restructuring and related costs (1) | (55.6 | ) | (39.9 | ) | (30.3 | ) | |||||
Harry’s combination and integration planning costs (2) | (5.1 | ) | — | — | |||||||
Sun Care reformulation costs (3) | (2.8 | ) | (25.3 | ) | — | ||||||
Feminine and Infant Care evaluation costs (4) | (2.1 | ) | — | — | |||||||
Jack Black acquisition and integration costs (5) | (1.6 | ) | (5.2 | ) | — | ||||||
Investor settlement expense (6) | (0.9 | ) | — | — | |||||||
Gain on sale of Playtex gloves | — | 15.3 | — | ||||||||
Pension settlement expense (7) | — | (5.4 | ) | — | |||||||
Amortization of intangibles | (17.7 | ) | (17.7 | ) | (17.8 | ) | |||||
Interest and other expense, net | (64.1 | ) | (66.6 | ) | (51.8 | ) | |||||
Total (loss) earnings before income taxes | $ | (390.3 | ) | $ | 163.8 | $ | (52.9 | ) | |||
Depreciation and amortization | |||||||||||
Wet Shave | $ | 47.3 | $ | 49.0 | $ | 46.6 | |||||
Sun and Skin Care | 12.9 | 13.6 | 12.9 | ||||||||
Feminine Care | 11.2 | 12.0 | 14.0 | ||||||||
All Other | 4.7 | 5.3 | 5.0 | ||||||||
Total segment depreciation and amortization | 76.1 | 79.9 | 78.5 | ||||||||
Corporate | 17.7 | 17.7 | 17.7 | ||||||||
Total depreciation and amortization | $ | 93.8 | $ | 97.6 | $ | 96.2 |
Fiscal Year | |||||||||||
2019 | 2018 | 2017 | |||||||||
Total Assets | |||||||||||
Wet Shave | $ | 725.3 | $ | 732.9 | |||||||
Sun and Skin Care | 207.7 | 174.3 | |||||||||
Feminine Care | 163.7 | 184.0 | |||||||||
All Other | 35.1 | 38.3 | |||||||||
Total segment assets | 1,131.8 | 1,129.5 | |||||||||
Corporate (8) | 343.4 | 274.0 | |||||||||
Goodwill and other intangible assets, net | 1,945.7 | 2,549.8 | |||||||||
Total assets | $ | 3,420.9 | $ | 3,953.3 | |||||||
Capital Expenditures | |||||||||||
Wet Shave | $ | 37.4 | $ | 36.3 | $ | 40.7 | |||||
Sun and Skin Care | 9.9 | 11.7 | 12.8 | ||||||||
Feminine Care | 7.5 | 10.1 | 11.2 | ||||||||
All Other | 3.2 | 3.9 | 4.3 | ||||||||
Total segment capital expenditures | 58.0 | 62.0 | 69.0 | ||||||||
Corporate | — | — | — | ||||||||
Total capital expenditures | $ | 58.0 | $ | 62.0 | $ | 69.0 |
Fiscal Year | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net Sales | |||||||||||||||||
Wet Shave | $ | 1,162.3 | $ | 1,250.1 | $ | 1,330.1 | |||||||||||
Sun and Skin Care | 462.0 | 463.1 | 453.3 | ||||||||||||||
Feminine Care | 298.6 | 308.1 | 329.5 | ||||||||||||||
All Other | 26.8 | 119.7 | 121.5 | ||||||||||||||
Total net sales | $ | 1,949.7 | $ | 2,141.0 | $ | 2,234.4 | |||||||||||
Segment Profit | |||||||||||||||||
Wet Shave | $ | 206.2 | $ | 246.5 | $ | 265.2 | |||||||||||
Sun and Skin Care | 69.1 | 80.4 | 80.9 | ||||||||||||||
Feminine Care | 52.3 | 48.3 | 37.2 | ||||||||||||||
All Other | 3.1 | 11.7 | 18.5 | ||||||||||||||
Total segment profit | 330.7 | 386.9 | 401.8 | ||||||||||||||
General corporate and other expenses | (54.9) | (57.3) | (68.8) | ||||||||||||||
Impairment charges | 0 | (570.0) | (24.4) | ||||||||||||||
Restructuring and related costs (1) | (38.1) | (55.6) | (39.9) | ||||||||||||||
Acquisition and integration costs (2) | (39.8) | (6.7) | (5.2) | ||||||||||||||
Cost of early retirement of long-term debt | (26.2) | 0 | 0 | ||||||||||||||
Gain on sale of Infant and Pet Care business | 4.1 | 0 | 0 | ||||||||||||||
COVID-19 expenses (3) | (4.3) | 0 | 0 | ||||||||||||||
Sun Care reformulation costs (4) | 0 | (2.8) | (25.3) | ||||||||||||||
Feminine and Infant Care evaluation costs (5) | (0.3) | (2.1) | 0 | ||||||||||||||
Investor settlement expense (6) | 0 | (0.9) | 0 | ||||||||||||||
Gain on sale of Playtex gloves assets | 0 | 0 | 15.3 | ||||||||||||||
Pension settlement expense (7) | 0 | 0 | (5.4) | ||||||||||||||
Amortization of intangibles | (17.3) | (17.7) | (17.7) | ||||||||||||||
Interest and other expense, net | (66.6) | (64.1) | (66.6) | ||||||||||||||
Total earnings (loss) before income taxes | $ | 87.3 | $ | (390.3) | $ | 163.8 | |||||||||||
Depreciation and amortization | |||||||||||||||||
Wet Shave | $ | 44.8 | $ | 47.3 | $ | 49.0 | |||||||||||
Sun and Skin Care | 13.8 | 12.9 | 13.6 | ||||||||||||||
Feminine Care | 11.9 | 11.2 | 12.0 | ||||||||||||||
All Other | 1.0 | 4.7 | 5.3 | ||||||||||||||
Total segment depreciation and amortization | 71.5 | 76.1 | 79.9 | ||||||||||||||
Corporate | 17.3 | 17.7 | 17.7 | ||||||||||||||
Total depreciation and amortization | $ | 88.8 | $ | 93.8 | $ | 97.6 |
Fiscal Year | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Total Assets | |||||||||||||||||
Wet Shave | $ | 709.8 | $ | 725.3 | |||||||||||||
Sun and Skin Care | 212.4 | 207.7 | |||||||||||||||
Feminine Care | 146.3 | 163.7 | |||||||||||||||
All Other | 0 | 35.1 | |||||||||||||||
Total segment assets | 1,068.5 | 1,131.8 | |||||||||||||||
Corporate (8) | 384.6 | 343.4 | |||||||||||||||
Goodwill and other intangible assets, net | 2,087.8 | 1,945.7 | |||||||||||||||
Total assets | $ | 3,540.9 | $ | 3,420.9 | |||||||||||||
Capital Expenditures | |||||||||||||||||
Wet Shave | $ | 34.8 | $ | 37.4 | $ | 36.3 | |||||||||||
Sun and Skin Care | 7.1 | 9.9 | 11.7 | ||||||||||||||
Feminine Care | 5.0 | 7.5 | 10.1 | ||||||||||||||
All Other | 0.8 | 3.2 | 3.9 | ||||||||||||||
Total segment capital expenditures | 47.7 | 58.0 | 62.0 | ||||||||||||||
Corporate | 0 | 0 | 0 | ||||||||||||||
Total capital expenditures | $ | 47.7 | $ | 58.0 | $ | 62.0 |
Fiscal Year | |||||||||||
2019 | 2018 | 2017 | |||||||||
Net Sales to Customers | |||||||||||
United States | $ | 1,189.2 | $ | 1,245.8 | $ | 1,330.5 | |||||
International | 951.8 | 988.6 | 967.9 | ||||||||
Total net sales | $ | 2,141.0 | $ | 2,234.4 | $ | 2,298.4 | |||||
Long-lived Assets | |||||||||||
United States | $ | 292.9 | $ | 316.9 | |||||||
Germany | 42.0 | 39.0 | |||||||||
Other International | 61.1 | 68.2 | |||||||||
Total long-lived assets excluding goodwill and other intangibles, net, and other assets | $ | 396.0 | $ | 424.1 |
Fiscal Year | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net Sales to Customers | |||||||||||||||||
United States | $ | 1,082.8 | $ | 1,189.2 | $ | 1,245.8 | |||||||||||
International | 866.9 | 951.8 | 988.6 | ||||||||||||||
Total net sales | $ | 1,949.7 | $ | 2,141.0 | $ | 2,234.4 | |||||||||||
Long-lived Assets | |||||||||||||||||
United States | $ | 257.0 | $ | 292.9 | |||||||||||||
Germany | 51.6 | 42.0 | |||||||||||||||
Other International | 62.3 | 61.1 | |||||||||||||||
Total long-lived assets excluding goodwill and other intangibles, net, and other assets | $ | 370.9 | $ | 396.0 |
Fiscal Year | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Razors and blades | $ | 1,023.3 | $ | 1,108.4 | $ | 1,185.4 | |||||||||||
Sun care products | 283.3 | 328.7 | 342.0 | ||||||||||||||
Tampons, pads and liners | 298.6 | 308.1 | 329.5 | ||||||||||||||
Shaving gels and creams | 139.0 | 141.7 | 144.7 | ||||||||||||||
Infant care and other | 26.8 | 119.7 | 121.5 | ||||||||||||||
Skin care products | 178.7 | 134.4 | 111.3 | ||||||||||||||
Total net sales | $ | 1,949.7 | $ | 2,141.0 | $ | 2,234.4 |
Fiscal Year | |||||||||||
2019 | 2018 | 2017 | |||||||||
Razors and blades | $ | 1,108.4 | $ | 1,185.4 | $ | 1,222.0 | |||||
Sun care products | 328.7 | 342.0 | 353.1 | ||||||||
Tampons, pads and liners | 308.1 | 329.4 | 351.6 | ||||||||
Shaving gels and creams | 141.7 | 144.7 | 153.3 | ||||||||
Infant care and other | 123.0 | 125.2 | 131.1 | ||||||||
Skin care products | 131.1 | 107.7 | 87.3 | ||||||||
Total net sales | $ | 2,141.0 | $ | 2,234.4 | $ | 2,298.4 |
Parent Company | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||
Net sales | $ | — | $ | 1,396.1 | $ | 1,061.4 | $ | (316.5 | ) | $ | 2,141.0 | ||||||||
Cost of products sold | — | 859.8 | 631.1 | (316.5 | ) | 1,174.4 | |||||||||||||
Gross profit | — | 536.3 | 430.3 | — | 966.6 | ||||||||||||||
Selling, general and administrative expense | — | 225.0 | 147.0 | — | 372.0 | ||||||||||||||
Advertising and sales promotion expense | — | 147.1 | 103.8 | — | 250.9 | ||||||||||||||
Research and development expense | — | 53.3 | 0.2 | — | 53.5 | ||||||||||||||
Impairment charge | — | 458.3 | 111.7 | — | 570.0 | ||||||||||||||
Restructuring charges | — | 29.6 | 16.8 | — | 46.4 | ||||||||||||||
Interest expense associated with debt | 53.4 | 8.5 | 0.7 | — | 62.6 | ||||||||||||||
Other expense (income), net | — | 3.2 | (1.7 | ) | — | 1.5 | |||||||||||||
Intercompany service fees | — | (17.8 | ) | 17.8 | — | — | |||||||||||||
Equity in earnings of subsidiaries | 332.4 | (10.8 | ) | — | (321.6 | ) | — | ||||||||||||
(Loss) earnings before income taxes | (385.8 | ) | (360.1 | ) | 34.0 | 321.6 | (390.3 | ) | |||||||||||
Income tax (benefit) provision | (13.6 | ) | (27.7 | ) | 23.2 | — | (18.1 | ) | |||||||||||
Net (loss) earnings | $ | (372.2 | ) | $ | (332.4 | ) | $ | 10.8 | $ | 321.6 | $ | (372.2 | ) | ||||||
Statement of Comprehensive Income (Loss): | |||||||||||||||||||
Net (loss) earnings | $ | (372.2 | ) | $ | (332.4 | ) | $ | 10.8 | $ | 321.6 | $ | (372.2 | ) | ||||||
Other comprehensive loss, net of tax | (87.6 | ) | (87.6 | ) | (63.7 | ) | 151.3 | (87.6 | ) | ||||||||||
Total comprehensive (loss) income | $ | (459.8 | ) | $ | (420.0 | ) | $ | (52.9 | ) | $ | 472.9 | $ | (459.8 | ) |
Parent Company | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||
Net sales | $ | — | $ | 1,477.5 | $ | 1,073.1 | $ | (316.2 | ) | $ | 2,234.4 | ||||||||
Cost of products sold | — | 896.8 | 620.9 | (316.2 | ) | 1,201.5 | |||||||||||||
Gross profit | — | 580.7 | 452.2 | — | 1,032.9 | ||||||||||||||
Selling, general and administrative expense | — | 240.1 | 155.0 | — | 395.1 | ||||||||||||||
Advertising and sales promotion expense | — | 177.9 | 115.4 | — | 293.3 | ||||||||||||||
Research and development expense | — | 61.1 | — | — | 61.1 | ||||||||||||||
Gain on sale of Playtex gloves | — | (15.3 | ) | — | — | (15.3 | ) | ||||||||||||
Impairment charge | — | 24.4 | — | — | 24.4 | ||||||||||||||
Restructuring charges | — | 31.9 | 6.6 | — | 38.5 | ||||||||||||||
Pension settlement loss | — | 4.6 | 0.8 | — | 5.4 | ||||||||||||||
Interest expense associated with debt | 53.5 | 13.6 | 0.9 | — | 68.0 | ||||||||||||||
Other expense (income), net | — | (1.6 | ) | 0.2 | — | (1.4 | ) | ||||||||||||
Intercompany service fees | — | (14.5 | ) | 14.5 | — | — | |||||||||||||
Equity in earnings of subsidiaries | (142.3 | ) | (128.8 | ) | — | 271.1 | — | ||||||||||||
Earnings before income taxes | 88.8 | 187.3 | 158.8 | (271.1 | ) | 163.8 | |||||||||||||
Income tax (benefit) provision | (14.5 | ) | 45.0 | 30.0 | — | 60.5 | |||||||||||||
Net earnings | $ | 103.3 | $ | 142.3 | $ | 128.8 | $ | (271.1 | ) | $ | 103.3 | ||||||||
Statement of Comprehensive Income: | |||||||||||||||||||
Net earnings | $ | 103.3 | $ | 142.3 | $ | 128.8 | $ | (271.1 | ) | $ | 103.3 | ||||||||
Other comprehensive loss, net of tax | (16.9 | ) | (16.9 | ) | (8.3 | ) | 25.2 | (16.9 | ) | ||||||||||
Total comprehensive income | $ | 86.4 | $ | 125.4 | $ | 120.5 | $ | (245.9 | ) | $ | 86.4 |
Parent Company | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||
Net sales | $ | — | $ | 1,578.2 | $ | 1,080.4 | $ | (360.2 | ) | $ | 2,298.4 | ||||||||
Cost of products sold | — | 912.1 | 620.6 | (360.2 | ) | 1,172.5 | |||||||||||||
Gross profit | — | 666.1 | 459.8 | — | 1,125.9 | ||||||||||||||
Selling, general and administrative expense | — | 250.0 | 142.5 | — | 392.5 | ||||||||||||||
Advertising and sales promotion expense | — | 207.4 | 110.9 | — | 318.3 | ||||||||||||||
Research and development expense | — | 67.0 | 0.6 | — | 67.6 | ||||||||||||||
Impairment charge | — | 319.0 | — | — | 319.0 | ||||||||||||||
Restructuring charges | — | 9.7 | 19.9 | — | 29.6 | ||||||||||||||
Interest expense associated with debt | 53.5 | 14.4 | 1.3 | — | 69.2 | ||||||||||||||
Other (income), net | — | (5.6 | ) | (11.8 | ) | — | (17.4 | ) | |||||||||||
Intercompany service fees | — | (20.0 | ) | 20.0 | — | — | |||||||||||||
Equity in earnings of subs | (39.2 | ) | (153.0 | ) | — | 192.2 | — | ||||||||||||
(Loss) earnings before income taxes | (14.3 | ) | (22.8 | ) | 176.4 | (192.2 | ) | (52.9 | ) | ||||||||||
Income tax (benefit) provision | (20.0 | ) | (62.0 | ) | 23.4 | — | (58.6 | ) | |||||||||||
Net earnings | 5.7 | 39.2 | 153.0 | (192.2 | ) | 5.7 | |||||||||||||
Statement of Comprehensive Income: | |||||||||||||||||||
Net earnings | $ | 5.7 | $ | 39.2 | $ | 153.0 | $ | (192.2 | ) | $ | 5.7 | ||||||||
Other comprehensive income, net of tax | 65.8 | 65.8 | 57.2 | (123.0 | ) | 65.8 | |||||||||||||
Total comprehensive income | $ | 71.5 | $ | 105.0 | $ | 210.2 | $ | (315.2 | ) | $ | 71.5 |
Parent Company | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||
Assets | |||||||||||||||||||
Current assets | |||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 2.6 | $ | 339.0 | $ | — | $ | 341.6 | |||||||||
Trade receivables, net | — | 43.7 | 161.9 | — | 205.6 | ||||||||||||||
Inventories | — | 193.1 | 164.1 | — | 357.2 | ||||||||||||||
Other current assets | — | 59.7 | 80.3 | — | 140.0 | ||||||||||||||
Total current assets | — | 299.1 | 745.3 | — | 1,044.4 | ||||||||||||||
Investment in subsidiaries | 3,357.4 | 1,139.6 | — | (4,497.0 | ) | — | |||||||||||||
Intercompany receivables, net (1) | — | 878.7 | 58.2 | (936.9 | ) | — | |||||||||||||
Property, plant and equipment, net | — | 292.1 | 103.9 | — | 396.0 | ||||||||||||||
Goodwill | — | 741.0 | 291.8 | — | 1,032.8 | ||||||||||||||
Other intangible assets, net | — | 711.8 | 201.1 | — | 912.9 | ||||||||||||||
Other assets | 0.4 | 0.2 | 34.2 | — | 34.8 | ||||||||||||||
Total assets | $ | 3,357.8 | $ | 4,062.5 | $ | 1,434.5 | $ | (5,433.9 | ) | $ | 3,420.9 | ||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||
Current liabilities | $ | 19.6 | $ | 409.7 | $ | 230.3 | $ | — | $ | 659.6 | |||||||||
Intercompany payables, net (1) | 936.9 | — | — | (936.9 | ) | — | |||||||||||||
Long-term debt | 1,097.8 | — | — | — | 1,097.8 | ||||||||||||||
Deferred income tax liabilities | — | 88.7 | 12.4 | — | 101.1 | ||||||||||||||
Other liabilities | — | 206.7 | 52.2 | — | 258.9 | ||||||||||||||
Total liabilities | 2,054.3 | 705.1 | 294.9 | (936.9 | ) | 2,117.4 | |||||||||||||
Total shareholders’ equity | 1,303.5 | 3,357.4 | 1,139.6 | (4,497.0 | ) | 1,303.5 | |||||||||||||
Total liabilities and shareholders’ equity | $ | 3,357.8 | $ | 4,062.5 | $ | 1,434.5 | $ | (5,433.9 | ) | $ | 3,420.9 |
Parent Company | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||
Assets | |||||||||||||||||||
Current assets | |||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 2.5 | $ | 263.9 | $ | — | $ | 266.4 | |||||||||
Trade receivables, net | — | 46.1 | 180.4 | — | 226.5 | ||||||||||||||
Inventories | — | 175.4 | 154.1 | — | 329.5 | ||||||||||||||
Other current assets | — | 48.8 | 80.0 | — | 128.8 | ||||||||||||||
Total current assets | — | 272.8 | 678.4 | — | 951.2 | ||||||||||||||
Investment in subsidiaries | 3,760.0 | 1,227.4 | — | (4,987.4 | ) | — | |||||||||||||
Intercompany receivables, net (1) | — | 836.1 | 63.9 | (900.0 | ) | — | |||||||||||||
Property, plant and equipment, net | — | 316.7 | 107.4 | — | 424.1 | ||||||||||||||
Goodwill | — | 1,037.5 | 413.3 | — | 1,450.8 | ||||||||||||||
Other intangible assets, net | — | 886.5 | 212.5 | — | 1,099.0 | ||||||||||||||
Other assets | 1.0 | 0.1 | 27.1 | — | 28.2 | ||||||||||||||
Total assets | $ | 3,761.0 | $ | 4,577.1 | $ | 1,502.6 | $ | (5,887.4 | ) | $ | 3,953.3 | ||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||
Current liabilities | $ | 19.7 | $ | 471.8 | $ | 225.5 | $ | — | $ | 717.0 | |||||||||
Intercompany payables, net (1) | 900.0 | — | — | (900.0 | ) | — | |||||||||||||
Long-term debt | 1,096.7 | 7.1 | — | — | 1,103.8 | ||||||||||||||
Deferred income tax liabilities | — | 142.6 | 33.5 | — | 176.1 | ||||||||||||||
Other liabilities | — | 195.6 | 16.2 | — | 211.8 | ||||||||||||||
Total liabilities | 2,016.4 | 817.1 | 275.2 | (900.0 | ) | 2,208.7 | |||||||||||||
Total shareholders’ equity | 1,744.6 | 3,760.0 | 1,227.4 | (4,987.4 | ) | 1,744.6 | |||||||||||||
Total liabilities and shareholders’ equity | $ | 3,761.0 | $ | 4,577.1 | $ | 1,502.6 | $ | (5,887.4 | ) | $ | 3,953.3 |
Parent Company | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||
Net cash (used by) from operating activities | $ | (33.9 | ) | $ | 133.9 | $ | 140.1 | $ | (49.5 | ) | $ | 190.6 | |||||||
Cash Flow from Investing Activities | |||||||||||||||||||
Capital expenditures | — | (34.4 | ) | (23.6 | ) | — | (58.0 | ) | |||||||||||
Collection of deferred purchase price from accounts receivable sold | — | 9.7 | — | — | 9.7 | ||||||||||||||
Proceeds on sale of fixed assets | — | 4.0 | 0.1 | — | 4.1 | ||||||||||||||
Intercompany receivables and payables, net | — | (36.9 | ) | — | 36.9 | — | |||||||||||||
Payment for equity contributions | — | (8.5 | ) | — | 8.5 | — | |||||||||||||
Other, net | — | — | (1.3 | ) | — | (1.3 | ) | ||||||||||||
Net cash used by investing activities | — | (66.1 | ) | (24.8 | ) | 45.4 | (45.5 | ) | |||||||||||
Cash Flow from Financing Activities | |||||||||||||||||||
Cash proceeds from debt with original maturities greater than 90 days | — | 434.0 | — | — | 434.0 | ||||||||||||||
Cash payments on debt with original maturities greater than 90 days | — | (324.0 | ) | — | — | (324.0 | ) | ||||||||||||
Term Loan repayment | — | (185.0 | ) | — | — | (185.0 | ) | ||||||||||||
Net increase (decrease) in debt with original maturity days of 90 or less | — | (1.1 | ) | 6.9 | — | 5.8 | |||||||||||||
Intercompany dividend | — | — | — | — | — | ||||||||||||||
Net financing inflow from the Accounts Receivable Facility | — | 8.4 | — | — | 8.4 | ||||||||||||||
Intercompany receivables and payables, net | 36.9 | — | — | (36.9 | ) | — | |||||||||||||
Proceeds for equity contribution | — | — | 8.5 | (8.5 | ) | — | |||||||||||||
Intercompany dividend | — | — | (49.5 | ) | 49.5 | — | |||||||||||||
Employee share withheld for taxes | (3.0 | ) | — | — | — | (3.0 | ) | ||||||||||||
Net cash from (used by) financing activities | 33.9 | (67.7 | ) | (34.1 | ) | 4.1 | (63.8 | ) | |||||||||||
Effect of exchange rate changes on cash | — | — | (6.1 | ) | — | (6.1 | ) | ||||||||||||
Net increase in cash and cash equivalents | — | 0.1 | 75.1 | — | 75.2 | ||||||||||||||
Cash and cash equivalents, beginning of period | — | 2.5 | 263.9 | — | 266.4 | ||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | 2.6 | $ | 339.0 | $ | — | $ | 341.6 |
Parent Company | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||
Net cash from operating activities | $ | 127.5 | $ | 340.9 | $ | 141.2 | $ | (350.2 | ) | $ | 259.4 | ||||||||
Cash Flow from Investing Activities | |||||||||||||||||||
Capital expenditures | — | (46.6 | ) | (15.4 | ) | — | (62.0 | ) | |||||||||||
Collection of deferred purchase price from accounts receivable sold | — | 9.7 | — | — | 9.7 | ||||||||||||||
Playtex glove sale | — | 19.0 | — | — | 19.0 | ||||||||||||||
Acquisitions, net of cash acquired | — | (90.2 | ) | — | — | (90.2 | ) | ||||||||||||
Proceeds on sale of fixed assets | — | 4.7 | — | — | 4.7 | ||||||||||||||
Net cash used by investing activities | — | (103.4 | ) | (15.4 | ) | — | (118.8 | ) | |||||||||||
Cash Flow from Financing Activities | |||||||||||||||||||
Cash proceeds from debt with original maturities greater than 90 days | — | 550.0 | — | — | 550.0 | ||||||||||||||
Cash payments on debt with original maturities greater than 90 days | — | (788.0 | ) | — | — | (788.0 | ) | ||||||||||||
Payment for intercompany equity distributions | — | — | (350.2 | ) | 350.2 | — | |||||||||||||
Net increase (decrease) in debt with original maturity days of 90 or less | — | 1.0 | (10.7 | ) | — | (9.7 | ) | ||||||||||||
Common shares purchased | (124.4 | ) | — | — | — | (124.4 | ) | ||||||||||||
Net financing outflow from the Accounts Receivable Facility | — | (4.4 | ) | — | — | (4.4 | ) | ||||||||||||
Employee share withheld for taxes | (3.1 | ) | — | — | — | (3.1 | ) | ||||||||||||
Net cash used by financing activities | (127.5 | ) | (241.4 | ) | (360.9 | ) | 350.2 | (379.6 | ) | ||||||||||
Effect of exchange rate changes on cash | — | — | 2.5 | — | 2.5 | ||||||||||||||
Net decrease in cash and cash equivalents | — | (3.9 | ) | (232.6 | ) | — | (236.5 | ) | |||||||||||
Cash and cash equivalents, beginning of period | — | 6.4 | 496.5 | — | 502.9 | ||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | 2.5 | $ | 263.9 | $ | — | $ | 266.4 |
Parent Company | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||
Net cash from operating activities | $ | 182.9 | $ | 63.1 | $ | 142.6 | $ | (75.0 | ) | $ | 313.6 | ||||||||
Cash Flow from Investing Activities | |||||||||||||||||||
Proceeds from intercompany notes | — | 1.9 | — | (1.9 | ) | — | |||||||||||||
Capital Expenditures | — | (51.7 | ) | (17.3 | ) | — | (69.0 | ) | |||||||||||
Acquisition, net of cash acquired | — | — | (34.0 | ) | — | (34.0 | ) | ||||||||||||
Proceeds on sale of fixed assets | — | 5.9 | 12.5 | — | 18.4 | ||||||||||||||
Net cash used by investing activities | — | (43.9 | ) | (38.8 | ) | (1.9 | ) | (84.6 | ) | ||||||||||
Cash Flow from Financing Activities | |||||||||||||||||||
Cash proceeds from issuance of debt with original maturities greater than 90 days | — | 271.0 | — | — | 271.0 | ||||||||||||||
Cash payments on debt with original maturities greater than 90 days | — | (291.0 | ) | (277.0 | ) | — | (568.0 | ) | |||||||||||
Payment for intercompany notes | — | — | (1.9 | ) | 1.9 | — | |||||||||||||
Net increase in debt with original maturity days of 90 or less | — | 1.4 | 0.6 | — | 2.0 | ||||||||||||||
Common shares purchased | (165.4 | ) | — | — | — | (165.4 | ) | ||||||||||||
Intercompany dividend | — | — | (75.0 | ) | 75.0 | — | |||||||||||||
Other, net | (0.1 | ) | — | (0.1 | ) | — | (0.2 | ) | |||||||||||
Employee share withheld for taxes | (17.4 | ) | — | — | — | (17.4 | ) | ||||||||||||
Net cash used by financing activities | (182.9 | ) | (18.6 | ) | (353.4 | ) | 76.9 | (478.0 | ) | ||||||||||
Effect of exchange rate changes on cash | — | — | 13.0 | — | 13.0 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | — | 0.6 | (236.6 | ) | — | (236.0 | ) | ||||||||||||
Cash and cash equivalents, beginning of period | — | 5.8 | 733.1 | — | 738.9 | ||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | 6.4 | $ | 496.5 | $ | — | $ | 502.9 |
Fiscal 2020 (by quarter) | |||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||
Net sales | $ | 454.0 | $ | 523.0 | $ | 483.9 | $ | 488.8 | |||||||||||||||
Gross profit (1)(2)(3) | 193.1 | 243.0 | 222.7 | 222.1 | |||||||||||||||||||
Net earnings (1)(2)(3)(4)(5)(6) | 22.4 | 19.5 | 4.7 | 21.0 | |||||||||||||||||||
Basic earnings per share (7) | 0.41 | 0.36 | 0.09 | 0.39 | |||||||||||||||||||
Diluted earnings per share (7) | 0.41 | 0.36 | 0.09 | 0.38 |
Fiscal 2019 (by quarter) | |||||||||||||||
Q1 | Q2 | Q3 | Q4 | ||||||||||||
Net sales | $ | 457.1 | $ | 546.7 | $ | 609.2 | $ | 528.0 | |||||||
Gross profit (2)(4) | 193.5 | 250.9 | 292.2 | 230.0 | |||||||||||
Net (loss) earnings (1)(2)(3)(4)(5)(6)(7)(8)(9) | (0.4 | ) | 48.2 | (460.7 | ) | 40.7 | |||||||||
Basic (loss) earnings per share (10) | (0.01 | ) | 0.89 | (8.51 | ) | 0.75 | |||||||||
Diluted (loss) earnings per share (10) | (0.01 | ) | 0.89 | (8.51 | ) | 0.75 |
Fiscal 2019 (by quarter) | |||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||
Net sales | $ | 457.1 | $ | 546.7 | $ | 609.2 | $ | 528.0 | |||||||||||||||
Gross profit (1)(2)(9) | 193.5 | 250.9 | 292.2 | 230.0 | |||||||||||||||||||
Net (loss) earnings (1)(2)(6)(8)(9)(10) | (0.4) | 48.2 | (460.7) | 40.7 | |||||||||||||||||||
Basic (loss) earnings per share (7) | (0.01) | 0.89 | (8.51) | 0.75 | |||||||||||||||||||
Diluted (loss) earnings per share (7) | (0.01) | 0.89 | (8.51) | 0.75 |
Fiscal 2018 (by quarter) | |||||||||||||||
Q1 | Q2 | Q3 | Q4 | ||||||||||||
Net sales | $ | 468.3 | $ | 608.1 | $ | 620.6 | $ | 537.4 | |||||||
Gross profit (4)(6) | 200.3 | 302.1 | 302.7 | 231.7 | |||||||||||
Net earnings (1) (2) (4)(6)(8)(9) | 6.7 | 65.1 | 12.1 | 19.4 | |||||||||||
Basic earnings per share (10) | 0.12 | 1.21 | 0.23 | 0.36 | |||||||||||
Diluted earnings per share (10) | 0.12 | 1.20 | 0.22 | 0.36 |
Three months ended June 30, 2019 | Nine months ended June 30, 2019 | ||||||||||||||||||||||
As Reported | Adjustment | As Revised | As Reported | Adjustment | As Revised | ||||||||||||||||||
Impairment charges | $ | 549.0 | $ | 21.0 | $ | 570.0 | $ | 549.0 | $ | 21.0 | $ | 570.0 | |||||||||||
Loss before income taxes | (481.7 | ) | (21.0 | ) | (502.7 | ) | (410.4 | ) | (21.0 | ) | (431.4 | ) | |||||||||||
Income tax benefit | (40.3 | ) | (1.7 | ) | (42.0 | ) | (16.8 | ) | (1.7 | ) | (18.5 | ) | |||||||||||
Net loss | (441.4 | ) | (19.3 | ) | (460.7 | ) | (393.6 | ) | (19.3 | ) | (412.9 | ) | |||||||||||
Basic loss per share | (8.16 | ) | (0.35 | ) | (8.51 | ) | (7.27 | ) | (0.36 | ) | (7.63 | ) | |||||||||||
Diluted loss per share | (8.16 | ) | (0.35 | ) | (8.51 | ) | (7.27 | ) | (0.36 | ) | (7.63 | ) |
June 30, 2019 | |||||||||||
As Reported | Adjustment | As Revised | |||||||||
Goodwill | $ | 1,060.2 | $ | (21.0 | ) | $ | 1,039.2 | ||||
Total assets | 3,452.3 | (21.0 | ) | 3,431.3 | |||||||
Deferred income tax liabilities | 118.7 | (1.7 | ) | 117.0 | |||||||
Total liabilities | 2,097.8 | (1.7 | ) | 2,096.1 | |||||||
Retained earnings | 693.4 | (19.3 | ) | 674.1 | |||||||
Shareholders’ equity | 1,354.5 | (19.3 | ) | 1,335.2 | |||||||
Total liabilities and shareholders’ equity | 3,452.3 | (21.0 | ) | 3,431.3 |
1)Financial Statements. The following are included within Item 8. Financial Statements and Supplementary Data of this Annual Report on Form 10-K. ◦ |
Fiscal Year | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
Allowance for Doubtful Accounts | ||||||||||||||||||||
Balance at beginning of year | $ | 5.6 | $ | 6.0 | $ | 4.3 | ||||||||||||||
Provision charged to expense, net of reversals | 3.7 | 0.2 | 2.3 | |||||||||||||||||
Write-offs, less recoveries, translation, other | (1.4) | (0.6) | (0.6) | |||||||||||||||||
Allowance for acquired receivables | 0.3 | 0 | 0 | |||||||||||||||||
Balance at end of year | $ | 8.2 | $ | 5.6 | $ | 6.0 | ||||||||||||||
Income Tax Valuation Allowance | ||||||||||||||||||||
Balance at beginning of year | $ | 7.2 | $ | 7.0 | $ | 8.4 | ||||||||||||||
Provision charged to expense | 1.4 | (0.1) | 0.7 | |||||||||||||||||
Write-offs, less recoveries, translation, other | (0.1) | 0.3 | (2.1) | |||||||||||||||||
Balance at end of year | $ | 8.5 | $ | 7.2 | $ | 7.0 |
Fiscal Year | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Allowance for Doubtful Accounts | ||||||||||||
Balance at beginning of year | $ | 6.0 | $ | 4.3 | $ | 4.9 | ||||||
Provision charged to expense, net of reversals | 0.2 | 2.3 | (0.4 | ) | ||||||||
Write-offs, less recoveries, translation, other | (0.6 | ) | (0.6 | ) | (0.2 | ) | ||||||
Balance at end of year | $ | 5.6 | $ | 6.0 | $ | 4.3 | ||||||
Income Tax Valuation Allowance | ||||||||||||
Balance at beginning of year | $ | 7.0 | $ | 8.4 | $ | 8.5 | ||||||
Provision charged to expense | (0.1 | ) | 0.7 | 0.1 | ||||||||
Write-offs, less recoveries, translation, other | 0.3 | (2.1 | ) | (0.2 | ) | |||||||
Balance at end of year | $ | 7.2 | $ | 7.0 | $ | 8.4 |
EDGEWELL PERSONAL CARE COMPANY | |||||||||||
/s/ Rod R. Little | |||||||||||
Rod R. Little | |||||||||||
President and Chief Executive Officer |
Signature | Title | ||||
/s/ Rod R. Little | |||||
Rod R. Little (principal executive officer) | President and Chief Executive Officer | ||||
/s/ Daniel J. Sullivan | |||||
Daniel J. Sullivan (principal financial officer) | Chief Financial Officer | ||||
Robert Black | Director | ||||
/s/ George Corbin | |||||
George Corbin | Director | ||||
/s/ Daniel J. Heinrich | |||||
Daniel J. Heinrich | Director | ||||
/s/ Carla C. Hendra | |||||
Carla C. Hendra | Director | ||||
/s/ R. David Hoover | |||||
R. David Hoover | Director | ||||
/s/ John C. Hunter | |||||
John C. Hunter | Director | ||||
/s/ James C. Johnson | |||||
James C. Johnson | Director | ||||
/s/ Joseph D. O’Leary | |||||
Joseph D. O’Leary | Director | ||||
/s/ Rakesh Sachdev | |||||
Rakesh Sachdev | Director | ||||
/s/ Swan Sit | |||||
Swan Sit | Director | ||||
/s/ Gary Waring | |||||
Gary Waring | Director | ||||
Date: November 20, 2020 |
Exhibit Number | Exhibit | ||||
2.1*** | |||||
2.2*** | |||||
2.3*** | |||||
2.4*** | |||||
2.5*** | |||||
2.6 | |||||
3.1 | |||||
3.2 | |||||
4.1 | |||||
4.2 | |||||
4.3 | |||||
10.1 | |||||
10.2 | |||||
10.3 | |||||
10.4 | |||||
10.5 | |||||
10.6 | |||||
10.7 | |||||
10.8 | |||||
10.9 | |||||
10.10 | |||||
10.11 | |||||
21.1* | |||||
23.1* | |||||
31.1* | |||||
31.2* | |||||
32.1* | |||||
32.2* | |||||
101* | The following materials from the Edgewell Personal Care Company Annual Report on Form 10-K formatted in inline eXtensible Business Reporting Language (iXBRL): (i) the Consolidated Statements of Earnings and Comprehensive Income for the years ended September 30, |