QUARTERLY 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, | |||||||||||||||||||||||
06484 | |||||||||||||||||||||||
(Registrant’s telephone number, including area code) |
(Address of principal executive offices and zip codes) | ||||||||||||||||||||
Title of each class | 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. | FINANCIAL INFORMATION | |||||||
Item 1. | Financial Statements (Unaudited). | |||||||
Condensed Consolidated Statements of Earnings and Comprehensive Income for the three | ||||||||
Condensed Consolidated Balance Sheets as of | ||||||||
Condensed Consolidated Statements of Cash Flows for the | ||||||||
Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three | ||||||||
Notes to Condensed Consolidated Financial Statements. | ||||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. | |||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk. | |||||||
Item 4. | Controls and Procedures. | |||||||
PART II. | OTHER INFORMATION | |||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. | |||||||
Item 6. | Exhibits. | |||||||
SIGNATURE |
Three Months Ended December 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
Net sales | $ | 454.0 | $ | 457.1 | |||||||||||||
Cost of products sold | 260.9 | 263.6 | |||||||||||||||
Gross profit | 193.1 | 193.5 | |||||||||||||||
Selling, general and administrative expense | 95.0 | 87.3 | |||||||||||||||
Advertising and sales promotion expense | 41.1 | 51.6 | |||||||||||||||
Research and development expense | 13.8 | 12.6 | |||||||||||||||
Restructuring charges | 6.1 | 17.1 | |||||||||||||||
Gain on sale of Infant and Pet Care business | (5.2) | — | |||||||||||||||
Interest expense associated with debt | 14.3 | 16.0 | |||||||||||||||
Other (income) expense, net | (1.6) | 1.3 | |||||||||||||||
Earnings before income taxes | 29.6 | 7.6 | |||||||||||||||
Income tax provision | 7.2 | 8.0 | |||||||||||||||
Net earnings (loss) | $ | 22.4 | $ | (0.4) | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic net earnings (loss) per share | $ | 0.41 | $ | (0.01) | |||||||||||||
Diluted net earnings (loss) per share | $ | 0.41 | $ | (0.01) | |||||||||||||
Statements of Comprehensive Income: | |||||||||||||||||
Net earnings (loss) | $ | 22.4 | $ | (0.4) | |||||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||||||
Foreign currency translation adjustments | 21.5 | (10.8) | |||||||||||||||
Pension and postretirement activity, net of tax of $(0.6) and $0.1 | (1.5) | — | |||||||||||||||
Deferred loss on hedging activity, net of tax of $(0.6) and $(0.7) | (1.3) | (1.3) | |||||||||||||||
Total other comprehensive income (loss), net of tax | 18.7 | (12.1) | |||||||||||||||
Total comprehensive income (loss) | $ | 41.1 | $ | (12.5) |
Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net sales | $ | 546.7 | $ | 608.1 | $ | 1,003.8 | $ | 1,076.4 | |||||||
Cost of products sold | 295.8 | 307.0 | 559.4 | 576.0 | |||||||||||
Gross profit | 250.9 | 301.1 | 444.4 | 500.4 | |||||||||||
Selling, general and administrative expense | 98.1 | 104.3 | 185.4 | 202.2 | |||||||||||
Advertising and sales promotion expense | 47.9 | 75.6 | 99.5 | 124.6 | |||||||||||
Research and development expense | 14.0 | 15.5 | 26.6 | 31.6 | |||||||||||
Restructuring charges | 13.5 | 3.7 | 30.6 | 3.7 | |||||||||||
Gain on sale of Playtex gloves | — | — | — | (15.9 | ) | ||||||||||
Interest expense associated with debt | 16.4 | 18.2 | 32.4 | 36.0 | |||||||||||
Other income, net | (2.7 | ) | (2.0 | ) | (1.4 | ) | (0.7 | ) | |||||||
Earnings before income taxes | 63.7 | 85.8 | 71.3 | 118.9 | |||||||||||
Income tax provision | 15.5 | 20.7 | 23.5 | 47.1 | |||||||||||
Net earnings | $ | 48.2 | $ | 65.1 | $ | 47.8 | $ | 71.8 | |||||||
Earnings per share: | |||||||||||||||
Basic net earnings per share | $ | 0.89 | $ | 1.21 | $ | 0.88 | $ | 1.31 | |||||||
Diluted net earnings per share | 0.89 | 1.20 | 0.88 | 1.31 | |||||||||||
Statements of Comprehensive Income: | |||||||||||||||
Net earnings | $ | 48.2 | $ | 65.1 | $ | 47.8 | $ | 71.8 | |||||||
Other comprehensive income, net of tax | |||||||||||||||
Foreign currency translation adjustments | (11.2 | ) | 16.4 | (22.0 | ) | 25.9 | |||||||||
Pension and postretirement activity, net of tax of $0.2, $0.1, $0.3 and $0.2 | 0.3 | 0.3 | 0.3 | 0.7 | |||||||||||
Deferred gain (loss) on hedging activity, net of tax of $0.2, $(0.8), $(0.5) and $(0.7) | 0.3 | (1.7 | ) | (1.0 | ) | (1.5 | ) | ||||||||
Total other comprehensive (loss) income, net of tax | (10.6 | ) | 15.0 | (22.7 | ) | 25.1 | |||||||||
Total comprehensive income | $ | 37.6 | $ | 80.1 | $ | 25.1 | $ | 96.9 |
December 31, 2019 | September 30, 2019 | ||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 251.8 | $ | 341.6 | |||||||
Trade receivables, less allowance for doubtful accounts of $4.7 and $5.6 | 183.2 | 205.6 | |||||||||
Inventories | 367.0 | 357.2 | |||||||||
Other current assets | 144.6 | 140.0 | |||||||||
Total current assets | 946.6 | 1,044.4 | |||||||||
Property, plant and equipment, net | 384.8 | 396.0 | |||||||||
Goodwill | 1,030.8 | 1,032.8 | |||||||||
Other intangible assets, net | 843.7 | 912.9 | |||||||||
Other assets | 97.3 | 34.8 | |||||||||
Total assets | $ | 3,303.2 | $ | 3,420.9 | |||||||
Liabilities and Shareholders’ Equity | |||||||||||
Current liabilities | |||||||||||
Current maturities of long-term debt | $ | — | $ | 117.0 | |||||||
Notes payable | 17.0 | 14.4 | |||||||||
Accounts payable | 195.1 | 222.8 | |||||||||
Other current liabilities | 250.4 | 305.4 | |||||||||
Total current liabilities | 462.5 | 659.6 | |||||||||
Long-term debt | 1,098.1 | 1,097.8 | |||||||||
Deferred income tax liabilities | 84.0 | 101.1 | |||||||||
Other liabilities | 310.5 | 258.9 | |||||||||
Total liabilities | 1,955.1 | 2,117.4 | |||||||||
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 issued; 54,300,084 and 54,206,746 outstanding | 0.7 | 0.7 | |||||||||
Additional paid-in capital | 1,622.7 | 1,627.7 | |||||||||
Retained earnings | 737.2 | 714.8 | |||||||||
Common shares in treasury at cost, 10,951,905 and 11,045,243 | (795.3) | (803.8) | |||||||||
Accumulated other comprehensive loss | (217.2) | (235.9) | |||||||||
Total shareholders’ equity | 1,348.1 | 1,303.5 | |||||||||
Total liabilities and shareholders’ equity | $ | 3,303.2 | $ | 3,420.9 |
March 31, 2019 | September 30, 2018 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 244.6 | $ | 266.4 | |||
Trade receivables, less allowance for doubtful accounts of $5.7 and $6.0 | 250.8 | 226.5 | |||||
Inventories | 388.6 | 329.5 | |||||
Other current assets | 137.8 | 128.8 | |||||
Total current assets | 1,021.8 | 951.2 | |||||
Property, plant and equipment, net | 402.6 | 424.1 | |||||
Goodwill | 1,444.7 | 1,450.8 | |||||
Other intangible assets, net | 1,087.3 | 1,099.0 | |||||
Other assets | 32.1 | 28.2 | |||||
Total assets | $ | 3,988.5 | $ | 3,953.3 | |||
Liabilities and Shareholders’ Equity | |||||||
Current liabilities | |||||||
Current maturities of long-term debt | $ | — | $ | 184.9 | |||
Notes payable | 13.9 | 8.2 | |||||
Accounts payable | 223.2 | 238.4 | |||||
Other current liabilities | 271.5 | 285.5 | |||||
Total current liabilities | 508.6 | 717.0 | |||||
Long-term debt | 1,312.3 | 1,103.8 | |||||
Deferred income tax liabilities | 175.5 | 176.1 | |||||
Other liabilities | 210.0 | 211.8 | |||||
Total liabilities | 2,206.4 | 2,208.7 | |||||
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 issued; 54,119,062 and 54,040,386 outstanding | 0.7 | 0.7 | |||||
Additional paid-in capital | 1,630.0 | 1,628.3 | |||||
Retained earnings | 1,134.8 | 1,083.1 | |||||
Common shares in treasury at cost, 11,132,927 and 11,211,603 | (812.4 | ) | (819.2 | ) | |||
Accumulated other comprehensive loss | (171.0 | ) | (148.3 | ) | |||
Total shareholders’ equity | 1,782.1 | 1,744.6 | |||||
Total liabilities and shareholders’ equity | $ | 3,988.5 | $ | 3,953.3 |
Three Months Ended December 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
Cash Flow from Operating Activities | |||||||||||||||||
Net earnings (loss) | $ | 22.4 | $ | (0.4) | |||||||||||||
Depreciation and amortization | 22.5 | 22.1 | |||||||||||||||
Share-based compensation expense | 4.9 | 4.9 | |||||||||||||||
Loss on sale of assets | 0.2 | 0.7 | |||||||||||||||
Gain on sale of Infant and Pet Care business | (5.2) | — | |||||||||||||||
Deferred compensation payments | (1.9) | (0.3) | |||||||||||||||
Deferred income taxes | (16.7) | (0.1) | |||||||||||||||
Other, net | 5.4 | 5.4 | |||||||||||||||
Changes in operating assets and liabilities | (78.5) | (78.7) | |||||||||||||||
Net cash used by operating activities | (46.9) | (46.4) | |||||||||||||||
Cash Flow from Investing Activities | |||||||||||||||||
Capital expenditures | (7.6) | (9.4) | |||||||||||||||
Proceeds from sale of Infant and Pet Care business | 95.8 | — | |||||||||||||||
Proceeds from sale of assets | — | 4.0 | |||||||||||||||
Collection of deferred purchase price on accounts receivable sold | 2.8 | 2.5 | |||||||||||||||
Other, net | (1.3) | — | |||||||||||||||
Net cash from (used by) from investing activities | 89.7 | (2.9) | |||||||||||||||
Cash Flow from Financing Activities | |||||||||||||||||
Cash proceeds from debt with original maturities greater than 90 days | 50.0 | 137.0 | |||||||||||||||
Cash payments on debt with original maturities greater than 90 days | (167.0) | (105.0) | |||||||||||||||
Net decrease in debt with original maturities of 90 days or less | (0.1) | (0.9) | |||||||||||||||
Net financing outflow from the Accounts Receivable Facility | (14.9) | (5.1) | |||||||||||||||
Employee shares withheld for taxes | (1.5) | (1.5) | |||||||||||||||
Other, net | (2.4) | — | |||||||||||||||
Net cash (used by) from financing activities | (135.9) | 24.5 | |||||||||||||||
Effect of exchange rate changes on cash | 3.3 | (1.7) | |||||||||||||||
Net decrease in cash and cash equivalents | (89.8) | (26.5) | |||||||||||||||
Cash and cash equivalents, beginning of period | 341.6 | 266.4 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 251.8 | $ | 239.9 |
Six Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Cash Flow from Operating Activities | |||||||
Net earnings | $ | 47.8 | $ | 71.8 | |||
Depreciation and amortization | 46.4 | 49.2 | |||||
Share-based compensation expense | 10.0 | 9.3 | |||||
Loss (gain) on sale of assets | 0.9 | (13.6 | ) | ||||
Deferred compensation payments | (5.2 | ) | (9.1 | ) | |||
Deferred income taxes | (0.3 | ) | (22.5 | ) | |||
Other, net | 4.5 | 31.6 | |||||
Changes in operating assets and liabilities | (136.0 | ) | (55.1 | ) | |||
Net cash (used by) from operating activities | (31.9 | ) | 61.6 | ||||
Cash Flow from Investing Activities | |||||||
Capital expenditures | (22.9 | ) | (27.6 | ) | |||
Acquisitions, net of cash acquired | — | (90.3 | ) | ||||
Playtex gloves sale | — | 19.0 | |||||
Proceeds from sale of assets | 4.0 | 4.7 | |||||
Collection of deferred purchase price on accounts receivable sold | 5.0 | 5.3 | |||||
Net cash used by investing activities | (13.9 | ) | (88.9 | ) | |||
Cash Flow from Financing Activities | |||||||
Cash proceeds from debt with original maturities greater than 90 days | 253.0 | 305.0 | |||||
Cash payments on debt with original maturities greater than 90 days | (45.0 | ) | (427.0 | ) | |||
Term Loan repayment | (185.0 | ) | — | ||||
Net decrease in debt with original maturities of 90 days or less | 3.5 | (1.2 | ) | ||||
Common shares purchased | — | (124.4 | ) | ||||
Net financing inflow from the Accounts Receivable Facility | 2.3 | 6.5 | |||||
Employee shares withheld for taxes | (1.5 | ) | (2.1 | ) | |||
Net cash from (used by) financing activities | 27.3 | (243.2 | ) | ||||
Effect of exchange rate changes on cash | (3.3 | ) | 11.2 | ||||
Net decrease in cash and cash equivalents | (21.8 | ) | (259.3 | ) | |||
Cash and cash equivalents, beginning of period | 266.4 | 502.9 | |||||
Cash and cash equivalents, end of period | $ | 244.6 | $ | 243.6 |
Common Shares | Treasury Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number | Par Value | Number | Amount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | — | — | — | — | — | 22.4 | — | 22.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | 21.5 | 21.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and postretirement activity | — | — | — | — | — | — | (1.5) | (1.5) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred loss on hedging activity | — | — | — | — | — | — | (1.3) | (1.3) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Activity under share plans | — | — | 0.1 | 8.5 | (5.0) | — | — | 3.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 65.2 | $ | 0.7 | (10.9) | $ | (795.3) | $ | 1,622.7 | $ | 737.2 | $ | (217.2) | $ | 1,348.1 |
Common Shares | Treasury Shares | ||||||||||||||||||||||||||||
Number | Par Value | Number | Amount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | ||||||||||||||||||||||
Balance at December 31, 2018 | 65.2 | $ | 0.7 | (11.1 | ) | $ | (812.6 | ) | $ | 1,625.0 | $ | 1,086.6 | $ | (160.4 | ) | $ | 1,739.3 | ||||||||||||
Net earnings | — | — | — | — | — | 48.2 | — | 48.2 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | (11.2 | ) | (11.2 | ) | |||||||||||||||||||
Pension and postretirement activity | — | — | — | — | — | — | 0.3 | 0.3 | |||||||||||||||||||||
Deferred loss on hedging activity | — | — | — | — | — | — | 0.3 | 0.3 | |||||||||||||||||||||
Activity under share plans | — | — | — | 0.2 | 5.0 | — | — | 5.2 | |||||||||||||||||||||
Balance at March 31, 2019 | 65.2 | $ | 0.7 | (11.1 | ) | $ | (812.4 | ) | $ | 1,630.0 | $ | 1,134.8 | $ | (171.0 | ) | $ | 1,782.1 |
Common Shares | Treasury Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number | Par Value | Number | Amount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | — | — | — | — | — | (0.4) | — | (0.4) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | (10.8) | (10.8) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and postretirement activity | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred loss on hedging activity | — | — | — | — | — | — | (1.3) | (1.3) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of ASU 2016-16 | — | — | — | — | — | 3.9 | — | 3.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Activity under share plans | — | — | 0.1 | 6.6 | (3.3) | — | — | 3.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 65.2 | $ | 0.7 | (11.1) | $ | (812.6) | $ | 1,625.0 | $ | 1,086.6 | $ | (160.4) | $ | 1,739.3 |
Common Shares | Treasury Shares | ||||||||||||||||||||||||||||
Number | Par Value | Number | Amount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | ||||||||||||||||||||||
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 earnings | — | — | — | — | — | 47.8 | — | 47.8 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | (22.0 | ) | (22.0 | ) | |||||||||||||||||||
Pension and postretirement activity | — | — | — | — | — | — | 0.3 | 0.3 | |||||||||||||||||||||
Impact of ASU 2016-16 | — | — | — | — | — | 3.9 | — | 3.9 | |||||||||||||||||||||
Deferred loss on hedging activity | — | — | — | — | — | — | (1.0 | ) | (1.0 | ) | |||||||||||||||||||
Activity under share plans | — | — | 0.1 | 6.8 | 1.7 | — | — | 8.5 | |||||||||||||||||||||
Balance at March 31, 2019 | 65.2 | $ | 0.7 | (11.1 | ) | $ | (812.4 | ) | $ | 1,630.0 | $ | 1,134.8 | $ | (171.0 | ) | $ | 1,782.1 |
Common Shares | Treasury Shares | ||||||||||||||||||||||||||||
Number | Par Value | Number | Amount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | ||||||||||||||||||||||
Balance at December 31, 2017 | 65.2 | $ | 0.7 | (11.1 | ) | $ | (813.5 | ) | $ | 1,620.7 | $ | 969.2 | $ | (121.3 | ) | $ | 1,655.8 | ||||||||||||
Net earnings | — | — | — | — | — | 65.1 | — | 65.1 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | 16.4 | 16.4 | |||||||||||||||||||||
Pension and postretirement activity | — | — | — | — | — | — | 0.3 | 0.3 | |||||||||||||||||||||
Deferred gain on hedging activity | — | — | — | — | — | — | (1.7 | ) | (1.7 | ) | |||||||||||||||||||
Repurchase of shares | — | — | (0.1 | ) | (9.2 | ) | — | — | — | (9.2 | ) | ||||||||||||||||||
Activity under share plans | — | — | — | — | 4.5 | — | — | 4.5 | |||||||||||||||||||||
Balance at March 31, 2018 | 65.2 | $ | 0.7 | (11.2 | ) | $ | (822.7 | ) | $ | 1,625.2 | $ | 1,034.3 | $ | (106.3 | ) | $ | 1,731.2 |
Common Shares | Treasury Shares | ||||||||||||||||||||||||||||
Number | Par Value | Number | Amount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | ||||||||||||||||||||||
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 | — | — | — | — | — | 71.8 | — | 71.8 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | 25.9 | 25.9 | |||||||||||||||||||||
Pension and postretirement activity | — | — | — | — | — | — | 0.7 | 0.7 | |||||||||||||||||||||
Deferred gain on hedging activity | — | — | — | — | — | — | (1.5 | ) | (1.5 | ) | |||||||||||||||||||
Repurchase of shares | — | — | (2.1 | ) | (124.4 | ) | — | — | — | (124.4 | ) | ||||||||||||||||||
Activity under share plans | — | — | 0.1 | 5.6 | 1.8 | 9.6 | — | 17.0 | |||||||||||||||||||||
Balance at March 31, 2018 | 65.2 | $ | 0.7 | (11.2 | ) | $ | (822.7 | ) | $ | 1,625.2 | $ | 1,034.3 | $ | (106.3 | ) | $ | 1,731.2 |
Three Months Ended March 31, 2019 | Three Months Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Corporate | Total | Wet Shave | Sun and Skin Care | Feminine Care | All Other | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Project Fuel | Project Fuel | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Severance and related benefit costs | $ | 4.4 | $ | 1.7 | $ | 0.9 | $ | 0.3 | $ | 1.8 | $ | 9.1 | Severance and related benefit costs | $ | — | $ | — | $ | — | $ | — | $ | 1.3 | 1.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset impairment and accelerated depreciation | 0.5 | — | — | — | — | 0.5 | Asset impairment and accelerated depreciation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consulting, project implementation and management and, other exit costs | — | — | — | — | 5.8 | 5.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consulting, project implementation and management, and other exit costs | Consulting, project implementation and management, and other exit costs | 2.8 | — | — | — | 3.9 | 6.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Restructuring | $ | 4.9 | $ | 1.7 | $ | 0.9 | $ | 0.3 | $ | 7.6 | $ | 15.4 | Total Restructuring | $ | 2.8 | $ | — | $ | — | $ | — | $ | 5.2 | $ | 8.0 |
Six Months Ended March 31, 2019 | |||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Corporate | Total | ||||||||||||||||||
Project Fuel | |||||||||||||||||||||||
Severance and related benefit costs | $ | 11.7 | $ | 2.2 | $ | 1.2 | $ | 0.4 | $ | 2.8 | 18.3 | ||||||||||||
Asset impairment and accelerated depreciation | 0.5 | — | — | — | 0.5 | 1.0 | |||||||||||||||||
Consulting, project implementation and management and, other exit costs | 2.3 | — | — | — | 12.3 | 14.6 | |||||||||||||||||
Total Restructuring | $ | 14.5 | $ | 2.2 | $ | 1.2 | $ | 0.4 | $ | 15.6 | $ | 33.9 |
Three Months Ended March 31, 2018 | |||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Corporate | Total | ||||||||||||||||||
Project Fuel | |||||||||||||||||||||||
Severance and related benefit costs | $ | 1.5 | $ | 0.7 | $ | 0.1 | $ | — | $ | — | 2.3 | ||||||||||||
Consulting, project implementation and management and, other exit costs | — | — | — | — | 1.4 | 1.4 | |||||||||||||||||
Total Restructuring | $ | 1.5 | $ | 0.7 | $ | 0.1 | $ | — | $ | 1.4 | $ | 3.7 |
Three Months Ended December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Corporate | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Project Fuel | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Severance and related benefit costs | $ | 7.3 | $ | 0.5 | $ | 0.3 | $ | 0.1 | $ | 1.0 | $ | 9.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset impairment and accelerated depreciation | — | — | — | — | 0.5 | 0.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consulting, project implementation and management, and other exit costs | 2.3 | — | — | — | 6.5 | 8.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Restructuring | $ | 9.6 | $ | 0.5 | $ | 0.3 | $ | 0.1 | $ | 8.0 | $ | 18.5 |
Utilized | |||||||||||||||||||||||||||||||||||||||||
October 1, 2019 | Charge to Income | Other (1) | Cash | Non-Cash | December 31, 2019 | ||||||||||||||||||||||||||||||||||||
Restructuring | |||||||||||||||||||||||||||||||||||||||||
Severance and related benefit costs | $ | 8.2 | $ | 1.3 | $ | — | $ | (2.6) | $ | — | $ | 6.9 | |||||||||||||||||||||||||||||
Asset impairment and accelerated depreciation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Consulting, project implementation and management, and other exit costs | 1.3 | 6.7 | — | (6.4) | — | 1.6 | |||||||||||||||||||||||||||||||||||
Total Restructuring | $ | 9.5 | $ | 8.0 | $ | — | $ | (9.0) | $ | — | $ | 8.5 |
Utilized | |||||||||||||||||||||||
October 1, 2018 | Charge to Income | Other (1) | Cash | Non-Cash | March 31, 2019 | ||||||||||||||||||
Restructuring | |||||||||||||||||||||||
Severance and related benefit costs | $ | 5.1 | $ | 18.3 | $ | (0.1 | ) | $ | (12.1 | ) | $ | — | $ | 11.2 | |||||||||
Asset impairment and accelerated depreciation | — | 1.0 | — | — | (1.0 | ) | — | ||||||||||||||||
Consulting, project implementation and management, and other exit costs | 2.6 | 14.6 | — | (16.7 | ) | — | 0.5 | ||||||||||||||||
Total Restructuring | $ | 7.7 | $ | 33.9 | $ | (0.1 | ) | $ | (28.8 | ) | $ | (1.0 | ) | $ | 11.7 |
Utilized | |||||||||||||||||||||||
October 1, 2017 | Charge to Income | Other (1) | Cash | Non-Cash | September 30, 2018 | ||||||||||||||||||
Restructuring | |||||||||||||||||||||||
Severance and related benefit costs | $ | 2.4 | $ | 12.1 | $ | (0.1 | ) | $ | (9.3 | ) | $ | — | $ | 5.1 | |||||||||
Asset impairment and accelerated depreciation | — | 1.8 | — | — | (1.8 | ) | $ | — | |||||||||||||||
Consulting, project implementation and management, and other exit costs | — | 26.0 | — | (23.4 | ) | — | 2.6 | ||||||||||||||||
Total Restructuring | $ | 2.4 | $ | 39.9 | $ | (0.1 | ) | $ | (32.7 | ) | $ | (1.8 | ) | $ | 7.7 |
Three Months Ended March 31, | Six Months Ended March 31, | Three Months Ended December 31, | ||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||
Basic weighted-average shares outstanding | 54.1 | 54.0 | 54.1 | 54.7 | Basic weighted-average shares outstanding | 54.3 | 54.1 | |||||||||||||||||||||
Effect of dilutive securities: | Effect of dilutive securities: | |||||||||||||||||||||||||||
RSE awards | 0.2 | 0.1 | 0.2 | 0.2 | RSE awards | 0.1 | — | |||||||||||||||||||||
Total dilutive securities | 0.2 | 0.1 | 0.2 | 0.2 | Total dilutive securities | 0.1 | — | |||||||||||||||||||||
Diluted weighted-average shares outstanding | 54.3 | 54.1 | 54.3 | 54.9 | Diluted weighted-average shares outstanding | 54.4 | 54.1 |
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) | — | (61.4) | (432.4) | ||||||||||||||||||||||||
Net balance at October 1, 2019 | $ | 591.3 | $ | 226.3 | $ | 207.0 | $ | 8.2 | $ | 1,032.8 | |||||||||||||||||||
Changes in the three-month period ended December 31, 2019 | |||||||||||||||||||||||||||||
Infant and Pet Care divestiture | — | — | — | (8.2) | (8.2) | ||||||||||||||||||||||||
Cumulative translation adjustment | 4.2 | 1.2 | 0.8 | — | 6.2 | ||||||||||||||||||||||||
Gross balance at December 31, 2019 | $ | 964.5 | $ | 229.5 | $ | 207.8 | $ | 61.4 | $ | 1,463.2 | |||||||||||||||||||
Accumulated goodwill impairment | (369.0) | (2.0) | — | (61.4) | (432.4) | ||||||||||||||||||||||||
Net balance at December 31, 2019 | $ | 595.5 | $ | 227.5 | $ | 207.8 | $ | — | $ | 1,030.8 |
Wet Shave | Sun and Skin Care | Feminine Care | All Other | Total | |||||||||||||||
Balance at October 1, 2018 | $ | 968.2 | $ | 229.4 | $ | 208.0 | $ | 45.2 | $ | 1,450.8 | |||||||||
Cumulative translation adjustment | (4.7 | ) | — | (1.4 | ) | — | (6.1 | ) | |||||||||||
Balance at March 31, 2019 | $ | 963.5 | $ | 229.4 | $ | 206.6 | $ | 45.2 | $ | 1,444.7 |
March 31, 2019 | September 30, 2018 | December 31, 2019 | September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trade names and brands | $ | 206.5 | $ | 30.2 | $ | 176.3 | $ | 206.7 | $ | 25.4 | $ | 181.3 | Trade names and brands | $ | 206.5 | $ | 37.6 | $ | 168.9 | $ | 206.4 | $ | 35.0 | $ | 171.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Technology and patents | 78.7 | 76.1 | 2.6 | 79.0 | 75.9 | 3.1 | Technology and patents | 76.2 | 74.5 | 1.7 | 78.5 | 76.4 | 2.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer related and other | 179.2 | 99.7 | 79.5 | 179.3 | 96.2 | 83.1 | Customer related and other | 178.4 | 103.4 | 75.0 | 176.0 | 100.9 | 75.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total amortizable intangible assets | $ | 464.4 | $ | 206.0 | $ | 258.4 | $ | 465.0 | $ | 197.5 | $ | 267.5 | Total amortizable intangible assets | $ | 461.1 | $ | 215.5 | $ | 245.6 | $ | 460.9 | $ | 212.3 | $ | 248.6 |
December 31, 2019 | September 30, 2019 | ||||||||||
Inventories | |||||||||||
Raw materials and supplies | $ | 58.9 | $ | 55.1 | |||||||
Work in process | 63.0 | 66.5 | |||||||||
Finished products | 245.1 | 235.6 | |||||||||
Total inventories | $ | 367.0 | $ | 357.2 | |||||||
Other Current Assets | |||||||||||
Miscellaneous receivables | $ | 23.0 | $ | 14.9 | |||||||
Inventory returns receivable | 0.6 | 4.9 | |||||||||
Prepaid expenses | 68.1 | 65.0 | |||||||||
Value added tax collectible from customers | 19.7 | 23.0 | |||||||||
Income taxes receivable | 16.0 | 29.1 | |||||||||
Other | 17.2 | 3.1 | |||||||||
Total other current assets | $ | 144.6 | $ | 140.0 | |||||||
Property, Plant and Equipment | |||||||||||
Land | $ | 18.9 | $ | 18.7 | |||||||
Buildings | 137.5 | 137.4 | |||||||||
Machinery and equipment | 991.8 | 992.3 | |||||||||
Capitalized software costs | 46.3 | 47.8 | |||||||||
Construction in progress | 40.4 | 40.9 | |||||||||
Total gross property, plant and equipment | 1,234.9 | 1,237.1 | |||||||||
Accumulated depreciation and amortization | (850.1) | (841.1) | |||||||||
Total property, plant and equipment, net | $ | 384.8 | $ | 396.0 | |||||||
Other Current Liabilities | |||||||||||
Accrued advertising, sales promotion and allowances | $ | 41.7 | $ | 51.9 | |||||||
Accrued trade allowances | 23.4 | 26.2 | |||||||||
Accrued salaries, vacations and incentive compensation | 34.7 | 51.5 | |||||||||
Income taxes payable | 19.6 | 11.5 | |||||||||
Returns reserve | 27.0 | 60.4 | |||||||||
Restructuring reserve | 8.5 | 9.5 | |||||||||
Value added tax payable | 3.0 | 3.6 | |||||||||
Deferred compensation | 6.4 | 10.4 | |||||||||
Short term lease obligation | 12.0 | — | |||||||||
Customer advance payments | 1.5 | 1.7 | |||||||||
Other | 72.6 | 78.7 | |||||||||
Total other current liabilities | $ | 250.4 | $ | 305.4 | |||||||
Other Liabilities | |||||||||||
Pensions and other retirement benefits | $ | 149.1 | $ | 149.8 | |||||||
Deferred compensation | 33.7 | 30.3 | |||||||||
Long term lease obligation | 43.6 | — | |||||||||
Other non-current liabilities | 84.1 | 78.8 | |||||||||
Total other liabilities | $ | 310.5 | $ | 258.9 |
March 31, 2019 | September 30, 2018 | ||||||
Inventories | |||||||
Raw materials and supplies | $ | 55.9 | $ | 52.0 | |||
Work in process | 68.7 | 67.5 | |||||
Finished products | 264.0 | 210.0 | |||||
Total inventories | $ | 388.6 | $ | 329.5 | |||
Other Current Assets | |||||||
Miscellaneous receivables | $ | 15.9 | $ | 12.6 | |||
Prepaid expenses | 75.0 | 68.4 | |||||
Value added tax collectible from customers | 24.7 | 25.2 | |||||
Income taxes receivable | 18.5 | 17.3 | |||||
Other | 3.7 | 5.3 | |||||
Total other current assets | $ | 137.8 | $ | 128.8 | |||
Property, Plant and Equipment | |||||||
Land | $ | 18.9 | $ | 19.2 | |||
Buildings | 137.3 | 141.9 | |||||
Machinery and equipment | 966.5 | 964.8 | |||||
Capitalized software costs | 50.9 | 48.4 | |||||
Construction in progress | 50.6 | 59.9 | |||||
Total gross property, plant and equipment | 1,224.2 | 1,234.2 | |||||
Accumulated depreciation and amortization | (821.6 | ) | (810.1 | ) | |||
Total property, plant and equipment, net | $ | 402.6 | $ | 424.1 | |||
Other Current Liabilities | |||||||
Accrued advertising, sales promotion and allowances | $ | 41.1 | $ | 28.2 | |||
Accrued trade allowances | 24.2 | 29.9 | |||||
Accrued salaries, vacations and incentive compensation | 40.9 | 44.2 | |||||
Income taxes payable | 8.6 | 20.3 | |||||
Returns reserve | 37.9 | 58.6 | |||||
Restructuring reserve | 11.7 | 7.7 | |||||
Value added tax payable | 7.5 | 4.0 | |||||
Deferred compensation | 8.9 | 6.3 | |||||
Other | 90.7 | 86.3 | |||||
Total other current liabilities | $ | 271.5 | $ | 285.5 | |||
Other Liabilities | |||||||
Pensions and other retirement benefits | $ | 89.3 | $ | 91.5 | |||
Deferred compensation | 33.6 | 40.7 | |||||
Other non-current liabilities | 87.1 | 79.6 | |||||
Total other liabilities | $ | 210.0 | $ | 211.8 |
Classification | December 31, 2019 | |||||||
Assets | ||||||||
Right of use assets | Other assets | $ | 55.7 | |||||
Liabilities | ||||||||
Current lease liabilities | Other current liabilities | $ | 12.0 | |||||
Long-term lease liabilities | Other liabilities | 43.6 | ||||||
Total lease liabilities | $ | 55.6 | ||||||
Other information | ||||||||
Weighted-average remaining lease term (years) | 11 | |||||||
Weighted-average incremental borrowing rate | 7.0 | % |
Three Months Ended December 31, 2019 | |||||
Statement of Income | |||||
Lease cost (1) | $ | 3.7 | |||
Other information | |||||
Leased assets obtained in exchange for new lease liabilities | $ | 0.1 | |||
Cash paid for amounts included in the measurement of lease liabilities | $ | 3.8 |
Operating Leases | |||||
2020 | $ | 10.7 | |||
2021 | 10.7 | ||||
2022 | 8.1 | ||||
2023 | 6.7 | ||||
2024 | 5.3 | ||||
2025 and thereafter | 42.4 | ||||
Total future minimum lease commitments | 83.9 | ||||
Less: Imputed Interest | (28.3) | ||||
Present value of lease liabilities | $ | 55.6 |
Operating Leases | |||||
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 |
December 31, 2019 | September 30, 2019 | ||||||||||
Senior notes, fixed interest rate of 4.7%, due 2021 | $ | 600.0 | $ | 600.0 | |||||||
Senior notes, fixed interest rate of 4.7%, due 2022 | 500.0 | 500.0 | |||||||||
U.S. revolving credit facility due 2020 | — | 117.0 | |||||||||
Total long-term debt, including current maturities | 1,100.0 | 1,217.0 | |||||||||
Less current portion | — | 117.0 | |||||||||
Less unamortized debt issuance costs and discount (1) (2) | 1.9 | 2.2 | |||||||||
Total long-term debt | $ | 1,098.1 | $ | 1,097.8 |
March 31, 2019 | September 30, 2018 | ||||||
Senior notes, fixed interest rate of 4.7%, due 2021 | $ | 600.0 | $ | 600.0 | |||
Senior notes, fixed interest rate of 4.7%, due 2022 | 500.0 | 500.0 | |||||
U.S. revolving credit facility due June 2020 | 215.0 | 7.0 | |||||
Term loan, due 2019 | — | 185.0 | |||||
Total long-term debt, including current maturities | 1,315.0 | 1,292.0 | |||||
Less current portion | — | 184.9 | |||||
Less unamortized debt issuance costs and discount (1) (2) | 2.7 | 3.3 | |||||
Total long-term debt | $ | 1,312.3 | $ | 1,103.8 |
Three Months Ended March 31, | Six Months Ended March 31, | Three Months Ended December 31, | ||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||
Service cost | $ | 0.8 | $ | 0.8 | $ | 1.5 | $ | 1.5 | Service cost | $ | 1.1 | $ | 0.7 | |||||||||||||||||||
Interest cost | 4.7 | 4.3 | 9.4 | 8.6 | Interest cost | 3.4 | 4.7 | |||||||||||||||||||||||||
Expected return on plan assets | (6.3 | ) | (7.2 | ) | (12.6 | ) | (14.3 | ) | Expected return on plan assets | (5.8) | (6.3) | |||||||||||||||||||||
Recognized net actuarial loss | 1.0 | 1.2 | 2.0 | 2.3 | Recognized net actuarial loss | 2.3 | 1.0 | |||||||||||||||||||||||||
Net periodic cost (benefit) | $ | 0.2 | $ | (0.9 | ) | $ | 0.3 | $ | (1.9 | ) | ||||||||||||||||||||||
Settlement loss recognized | Settlement loss recognized | 0.2 | — | |||||||||||||||||||||||||||||
Net periodic cost | Net periodic cost | $ | 1.2 | $ | 0.1 |
Foreign Currency Translation Adjustments | Pension and Post-retirement Activity | Hedging Activity | Total | ||||||||||||||||||||
Balance at October 1, 2019 | $ | (77.3) | $ | (159.8) | $ | 1.2 | $ | (235.9) | |||||||||||||||
OCI before reclassifications (1) | 21.5 | (3.3) | (0.7) | 17.5 | |||||||||||||||||||
Reclassifications to earnings | — | 1.8 | (0.6) | 1.2 | |||||||||||||||||||
Balance at December 31, 2019 | $ | (55.8) | $ | (161.3) | $ | (0.1) | $ | (217.2) |
Foreign Currency Translation Adjustments | Pension and Post-retirement Activity | Hedging Activity | Total | 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 | ) | Balance at October 1, 2018 | $ | (40.6) | $ | (110.3) | $ | 2.6 | $ | (148.3) | ||||||||||||||||||
OCI before reclassifications (1) | (22.0 | ) | (1.2 | ) | 1.1 | (22.1 | ) | OCI before reclassifications (1) | (10.8) | (0.7) | (0.1) | (11.6) | ||||||||||||||||||||||||||
Reclassifications to earnings | — | 1.5 | (2.1 | ) | (0.6 | ) | Reclassifications to earnings | — | 0.7 | (1.2) | (0.5) | |||||||||||||||||||||||||||
Balance at March 31, 2019 | $ | (62.6 | ) | $ | (110.0 | ) | $ | 1.6 | $ | (171.0 | ) | |||||||||||||||||||||||||||
Balance at December 31, 2018 | Balance at December 31, 2018 | $ | (51.4) | $ | (110.3) | $ | 1.3 | $ | (160.4) |
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) | 25.9 | (0.9 | ) | (2.6 | ) | 22.4 | |||||||||
Reclassifications to earnings | — | 1.6 | 1.1 | 2.7 | |||||||||||
Balance at March 31, 2018 | $ | (3.1 | ) | $ | (100.6 | ) | $ | (2.6 | ) | $ | (106.3 | ) |
For the Three Months Ended December 31, | Affected Line Item in the Condensed Consolidated Statements of Earnings | |||||||||||||||||||||||||
Details of AOCI Components | 2019 | 2018 | ||||||||||||||||||||||||
Gain / (Loss) on cash flow hedges | ||||||||||||||||||||||||||
Foreign exchange contracts | $ | 0.9 | $ | 1.8 | Other (income) expense, net | |||||||||||||||||||||
0.9 | 1.8 | Total before tax | ||||||||||||||||||||||||
0.3 | 0.6 | Income tax provision | ||||||||||||||||||||||||
0.6 | 1.2 | Net of tax | ||||||||||||||||||||||||
Amortization of defined benefit pension and postretirement items | ||||||||||||||||||||||||||
Actuarial losses | $ | (2.3) | $ | (1.0) | (1) | |||||||||||||||||||||
Settlements | (0.2) | — | ||||||||||||||||||||||||
(2.5) | (1.0) | Total before tax | ||||||||||||||||||||||||
(0.7) | (0.3) | Income tax provision | ||||||||||||||||||||||||
(1.8) | (0.7) | Net of tax | ||||||||||||||||||||||||
Total reclassifications for the period | $ | (1.2) | $ | 0.5 | Net of tax |
For the Three Months Ended March 31, | For the Six Months Ended March 31, | Affected Line Item in the Condensed Consolidated Statements of Earnings | |||||||||||||||
Details of AOCI Components | 2019 | 2018 | 2019 | 2018 | |||||||||||||
Gain / Loss on cash flow hedges | |||||||||||||||||
Foreign exchange contracts | $ | 1.3 | $ | (0.8 | ) | $ | 3.1 | $ | (1.5 | ) | Other income, net | ||||||
1.3 | (0.8 | ) | 3.1 | (1.5 | ) | Total before tax | |||||||||||
0.4 | (0.2 | ) | 1.0 | (0.4 | ) | Income tax provision | |||||||||||
0.9 | (0.6 | ) | 2.1 | (1.1 | ) | Net of tax | |||||||||||
Amortization of defined benefit pension and postretirement items | |||||||||||||||||
Actuarial losses | $ | (1.0 | ) | $ | (1.2 | ) | $ | (2.0 | ) | (2.3 | ) | (1) | |||||
(1.0 | ) | (1.2 | ) | (2.0 | ) | (2.3 | ) | Total before tax | |||||||||
(0.2 | ) | (0.3 | ) | (0.5 | ) | (0.7 | ) | Income tax provision | |||||||||
(0.8 | ) | (0.9 | ) | (1.5 | ) | $ | (1.6 | ) | Net of tax | ||||||||
Total reclassifications for the period | $ | 0.1 | $ | (1.5 | ) | $ | 0.6 | $ | (2.7 | ) | Net of tax |
Fair Value of Asset (Liability) (1) | |||||||||||||||||
December 31, 2019 | September 30, 2019 | ||||||||||||||||
Derivatives designated as cash flow hedging relationships: | |||||||||||||||||
Foreign currency contracts | $ | (0.1) | $ | 1.7 | |||||||||||||
Derivatives not designated as cash flow hedging relationships: | |||||||||||||||||
Foreign currency contracts | $ | 0.2 | $ | 0.4 |
Fair Value of Asset (Liability) (1) | |||||||
March 31, 2019 | September 30, 2018 | ||||||
Derivatives designated as cash flow hedging relationships: | |||||||
Foreign currency contracts | $ | 2.4 | $ | 3.9 | |||
Derivatives not designated as cash flow hedging relationships: | |||||||
Foreign currency contracts | $ | 0.1 | $ | 1.3 |
Three Months Ended December 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
Derivatives designated as cash flow hedging relationships: | |||||||||||||||||
Foreign currency contracts | |||||||||||||||||
Loss recognized in OCI (1) | $ | (0.9) | $ | (0.2) | |||||||||||||
Gain reclassified from AOCI into income (effective portion) (1) (2) | 0.9 | 1.8 | |||||||||||||||
Derivatives not designated as cash flow hedging relationships: | |||||||||||||||||
Foreign currency contracts | |||||||||||||||||
Gain (loss) recognized in income (2) | $ | 0.3 | $ | (1.3) |
Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Derivatives designated as cash flow hedging relationships: | |||||||||||||||
Foreign currency contracts | |||||||||||||||
Gain (loss) recognized in OCI (1) | $ | 1.8 | $ | (3.3 | ) | $ | 1.6 | $ | (3.7 | ) | |||||
Gain (loss) reclassified from AOCI into income (effective portion) (1) (2) | 1.3 | (0.8 | ) | $ | 3.1 | $ | (1.5 | ) | |||||||
Derivatives not designated as cash flow hedging relationships: | |||||||||||||||
Foreign currency contracts | |||||||||||||||
Gain (loss) recognized in income (2) | $ | 0.7 | $ | (2.6 | ) | $ | (0.6 | ) | $ | (2.8 | ) |
At March 31, 2019 | At September 30, 2018 | ||||||||||||||
Assets (1) | Liabilities (2) | Assets (1) | Liabilities (2) | ||||||||||||
Foreign currency contracts | |||||||||||||||
Gross amounts of recognized assets (liabilities) | $ | 2.6 | $ | — | $ | 5.3 | $ | — | |||||||
Gross amounts offset in the balance sheet | (0.1 | ) | — | (0.1 | ) | — | |||||||||
Net amounts of assets (liabilities) presented in the balance sheet | $ | 2.5 | $ | — | $ | 5.2 | $ | — |
At December 31, 2019 | At September 30, 2019 | ||||||||||||||||||||||||||||||||||
Assets (1) | Liabilities (2) | Assets (1) | Liabilities (2) | ||||||||||||||||||||||||||||||||
Foreign currency contracts | |||||||||||||||||||||||||||||||||||
Gross amounts of recognized assets (liabilities) | $ | 1.0 | $ | (0.7) | $ | 2.4 | $ | (0.5) | |||||||||||||||||||||||||||
Gross amounts offset in the balance sheet | (0.2) | — | — | 0.2 | |||||||||||||||||||||||||||||||
Net amounts of assets (liabilities) presented in the balance sheet | $ | 0.8 | $ | (0.7) | $ | 2.4 | $ | (0.3) |
March 31, 2019 | September 30, 2018 | December 31, 2019 | September 30, 2019 | |||||||||||||||
Liabilities at estimated fair value: | Liabilities at estimated fair value: | |||||||||||||||||
Deferred compensation | $ | (42.4 | ) | $ | (46.9 | ) | Deferred compensation | $ | (40.1) | $ | (40.6) | |||||||
Derivatives - foreign currency contracts | 2.5 | 5.2 | Derivatives - foreign currency contracts | 0.1 | 2.1 | |||||||||||||
Net liabilities at estimated fair value | $ | (39.9 | ) | $ | (41.7 | ) | Net liabilities at estimated fair value | $ | (40.0) | $ | (38.5) |
Three Months Ended December 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
Net Sales | |||||||||||||||||
Wet Shave | $ | 277.0 | $ | 287.7 | |||||||||||||
Sun and Skin Care | 75.1 | 66.7 | |||||||||||||||
Feminine Care | 75.1 | 74.7 | |||||||||||||||
All Other | 26.8 | 28.0 | |||||||||||||||
Total net sales | $ | 454.0 | $ | 457.1 | |||||||||||||
Segment Profit | |||||||||||||||||
Wet Shave | $ | 52.9 | $ | 55.0 | |||||||||||||
Sun and Skin Care | 0.1 | (0.6) | |||||||||||||||
Feminine Care | 13.1 | 7.5 | |||||||||||||||
All Other | 3.1 | 1.2 | |||||||||||||||
Total segment profit | 69.2 | 63.1 | |||||||||||||||
General corporate and other expenses | (13.3) | (13.7) | |||||||||||||||
Restructuring and related costs (1) | (8.0) | (18.5) | |||||||||||||||
Acquisition and integration planning costs (2) | (6.2) | (0.5) | |||||||||||||||
Gain on sale of Infant and Pet Care business | 5.2 | — | |||||||||||||||
Feminine and Infant Care evaluation costs (3) | (0.3) | — | |||||||||||||||
Sun Care reformulation costs (4) | — | (0.1) | |||||||||||||||
Investor settlement expense (5) | — | (0.9) | |||||||||||||||
Amortization of intangibles | (4.3) | (4.5) | |||||||||||||||
Interest and other expense, net | (12.7) | (17.3) | |||||||||||||||
Total earnings before income taxes | $ | 29.6 | $ | 7.6 |
Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net Sales | |||||||||||||||
Wet Shave | $ | 294.4 | $ | 345.2 | $ | 582.1 | $ | 639.3 | |||||||
Sun and Skin Care | 145.2 | 152.3 | 211.9 | 211.4 | |||||||||||
Feminine Care | 74.6 | 80.3 | 149.3 | 162.9 | |||||||||||
All Other | 32.5 | 30.3 | 60.5 | 62.8 | |||||||||||
Total net sales | $ | 546.7 | $ | 608.1 | $ | 1,003.8 | $ | 1,076.4 | |||||||
Segment Profit | |||||||||||||||
Wet Shave | $ | 55.7 | $ | 68.9 | $ | 110.7 | $ | 122.6 | |||||||
Sun and Skin Care | 40.5 | 48.6 | 39.9 | 42.4 | |||||||||||
Feminine Care | 13.7 | 9.9 | 21.2 | 14.7 | |||||||||||
All Other | 6.0 | 4.3 | 7.2 | 11.4 | |||||||||||
Total segment profit | 115.9 | 131.7 | 179.0 | 191.1 | |||||||||||
General corporate and other expenses | (16.7 | ) | (19.2 | ) | (30.4 | ) | (37.9 | ) | |||||||
Restructuring and related costs (1) | (15.4 | ) | (3.7 | ) | (33.9 | ) | (3.7 | ) | |||||||
Feminine and Infant Care evaluation costs (2) | (1.0 | ) | — | (1.0 | ) | — | |||||||||
Jack Black acquisition and integration costs (3) | (0.5 | ) | (2.6 | ) | (1.0 | ) | (2.6 | ) | |||||||
Investor settlement expense (4) | — | — | (0.9 | ) | — | ||||||||||
Sun Care reformulation costs (5) | (0.4 | ) | — | (0.5 | ) | — | |||||||||
Gain on sale of Playtex gloves | — | — | — | 15.9 | |||||||||||
Amortization of intangibles | (4.5 | ) | (4.2 | ) | (9.0 | ) | (8.6 | ) | |||||||
Interest and other income, net | (13.7 | ) | (16.2 | ) | (31.0 | ) | (35.3 | ) | |||||||
Total earnings before income taxes | $ | 63.7 | $ | 85.8 | $ | 71.3 | $ | 118.9 |
Three Months Ended March 31, | Six Months Ended March 31, | Three Months Ended December 31, | ||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||
Net Sales to Customers | Net Sales to Customers | |||||||||||||||||||||||||||||||
United States | $ | 310.4 | $ | 340.2 | $ | 561.7 | $ | 598.5 | United States | $ | 251.1 | $ | 251.3 | |||||||||||||||||||
International | 236.3 | 267.9 | 442.1 | 477.9 | International | 202.9 | 205.8 | |||||||||||||||||||||||||
Total net sales | $ | 546.7 | $ | 608.1 | $ | 1,003.8 | $ | 1,076.4 | Total net sales | $ | 454.0 | $ | 457.1 |
Three Months Ended December 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
Razors and blades | $ | 244.3 | $ | 255.3 | |||||||||||||
Tampons, pads, and liners | 75.1 | 74.7 | |||||||||||||||
Skin care products | 37.9 | 33.5 | |||||||||||||||
Sun care products | 37.2 | 33.2 | |||||||||||||||
Shaving gels and creams | 32.7 | 32.4 | |||||||||||||||
Infant care and other | 26.8 | 28.0 | |||||||||||||||
Total net sales | $ | 454.0 | $ | 457.1 |
Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Razors and blades | $ | 260.6 | $ | 311.4 | $ | 515.9 | $ | 572.9 | |||||||
Sun care products | 116.3 | 127.1 | 149.5 | 165.4 | |||||||||||
Tampons, pads, and liners | 74.6 | 80.3 | 149.3 | 162.9 | |||||||||||
Shaving gels and creams | 33.8 | 33.8 | 66.2 | 66.4 | |||||||||||
Skin care products | 28.9 | 25.2 | 62.4 | 46.0 | |||||||||||
Infant care and other | 32.5 | 30.3 | 60.5 | 62.8 | |||||||||||
Total net sales | $ | 546.7 | $ | 608.1 | $ | 1,003.8 | $ | 1,076.4 |
Parent Company | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||||||||||||
Net sales | $ | — | $ | 296.1 | $ | 234.2 | $ | (76.3) | $ | 454.0 | |||||||||||||||||||
Cost of products sold | — | 189.3 | 147.9 | (76.3) | 260.9 | ||||||||||||||||||||||||
Gross profit | — | 106.8 | 86.3 | — | 193.1 | ||||||||||||||||||||||||
Selling, general and administrative expense | — | 59.1 | 35.9 | — | 95.0 | ||||||||||||||||||||||||
Advertising and sales promotion expense | — | 20.2 | 20.9 | — | 41.1 | ||||||||||||||||||||||||
Research and development expense | — | 13.8 | — | — | 13.8 | ||||||||||||||||||||||||
Restructuring charges | — | 3.1 | 3.0 | — | 6.1 | ||||||||||||||||||||||||
Gain on sale of Infant and Pet Care business | — | (5.2) | — | — | (5.2) | ||||||||||||||||||||||||
Interest expense associated with debt | 13.3 | 0.8 | 0.2 | — | 14.3 | ||||||||||||||||||||||||
Other (income) expense, net | — | 0.8 | (2.4) | — | (1.6) | ||||||||||||||||||||||||
Intercompany service fees | — | (3.1) | 3.1 | — | — | ||||||||||||||||||||||||
Equity in earnings of subsidiaries | (32.3) | (21.2) | — | 53.5 | — | ||||||||||||||||||||||||
Earnings before income taxes | 19.0 | 38.5 | 25.6 | (53.5) | 29.6 | ||||||||||||||||||||||||
Income tax provision (benefit) | (3.4) | 6.2 | 4.4 | — | 7.2 | ||||||||||||||||||||||||
Net earnings | $ | 22.4 | $ | 32.3 | $ | 21.2 | $ | (53.5) | $ | 22.4 | |||||||||||||||||||
Statements of Comprehensive Income: | |||||||||||||||||||||||||||||
Net earnings | $ | 22.4 | $ | 32.3 | $ | 21.2 | $ | (53.5) | $ | 22.4 | |||||||||||||||||||
Other comprehensive income, net of tax | 18.7 | 18.7 | 19.7 | (38.4) | 18.7 | ||||||||||||||||||||||||
Total comprehensive income | $ | 41.1 | $ | 51.0 | $ | 40.9 | $ | (91.9) | $ | 41.1 |
Parent Company | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||
Net sales | $ | — | $ | 370.0 | $ | 261.7 | $ | (85.0 | ) | $ | 546.7 | ||||||||
Cost of products sold | — | 221.4 | 159.4 | (85.0 | ) | 295.8 | |||||||||||||
Gross profit | — | 148.6 | 102.3 | — | 250.9 | ||||||||||||||
Selling, general and administrative expense | — | 62.2 | 35.9 | — | 98.1 | ||||||||||||||
Advertising and sales promotion expense | — | 25.1 | 22.8 | — | 47.9 | ||||||||||||||
Research and development expense | — | 14.0 | — | — | 14.0 | ||||||||||||||
Restructuring charges | — | 10.8 | 2.7 | — | 13.5 | ||||||||||||||
Interest expense associated with debt | 13.4 | 2.7 | 0.3 | — | 16.4 | ||||||||||||||
Other expense (income), net | — | 0.4 | (3.1 | ) | — | (2.7 | ) | ||||||||||||
Intercompany service fees | — | (5.8 | ) | 5.8 | — | — | |||||||||||||
Equity in earnings of subsidiaries | (58.4 | ) | (32.0 | ) | — | 90.4 | — | ||||||||||||
Earnings before income taxes | 45.0 | 71.2 | 37.9 | (90.4 | ) | 63.7 | |||||||||||||
Income tax provision (benefit) | (3.2 | ) | 12.8 | 5.9 | — | 15.5 | |||||||||||||
Net earnings (loss) | $ | 48.2 | $ | 58.4 | $ | 32.0 | $ | (90.4 | ) | $ | 48.2 | ||||||||
Statements of Comprehensive Income: | |||||||||||||||||||
Net earnings (loss) | $ | 48.2 | $ | 58.4 | $ | 32.0 | $ | (90.4 | ) | $ | 48.2 | ||||||||
Other comprehensive income (loss), net of tax | (10.6 | ) | (10.6 | ) | (10.2 | ) | 20.8 | (10.6 | ) | ||||||||||
Total comprehensive income (loss) | $ | 37.6 | $ | 47.8 | $ | 21.8 | $ | (69.6 | ) | $ | 37.6 |
Parent Company | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||
Net sales | $ | — | $ | 669.7 | $ | 498.4 | $ | (164.3 | ) | $ | 1,003.8 | ||||||||
Cost of products sold | — | 414.2 | 309.5 | (164.3 | ) | 559.4 | |||||||||||||
Gross profit | — | 255.5 | 188.9 | — | 444.4 | ||||||||||||||
Selling, general and administrative expense | — | 113.4 | 72.0 | — | 185.4 | ||||||||||||||
Advertising and sales promotion expense | — | 52.5 | 47.0 | — | 99.5 | ||||||||||||||
Research and development expense | — | 26.6 | — | — | 26.6 | ||||||||||||||
Restructuring charges | — | 19.7 | 10.9 | — | 30.6 | ||||||||||||||
Interest expense associated with debt | 26.8 | 5.2 | 0.4 | — | 32.4 | ||||||||||||||
Other expense (income), net | — | 1.0 | (2.4 | ) | — | (1.4 | ) | ||||||||||||
Intercompany service fees | — | (9.4 | ) | 9.4 | — | — | |||||||||||||
Equity in earnings of subsidiaries | (68.1 | ) | (43.5 | ) | — | 111.6 | — | ||||||||||||
Earnings before income taxes | 41.3 | 90.0 | 51.6 | (111.6 | ) | 71.3 | |||||||||||||
Income tax provision (benefit) | (6.5 | ) | 21.9 | 8.1 | — | 23.5 | |||||||||||||
Net earnings (loss) | $ | 47.8 | $ | 68.1 | $ | 43.5 | $ | (111.6 | ) | $ | 47.8 | ||||||||
Statements of Comprehensive Income: | |||||||||||||||||||
Net earnings (loss) | $ | 47.8 | $ | 68.1 | $ | 43.5 | $ | (111.6 | ) | $ | 47.8 | ||||||||
Other comprehensive income (loss), net of tax | (22.7 | ) | (22.7 | ) | (21.8 | ) | 44.5 | (22.7 | ) | ||||||||||
Total comprehensive income (loss) | $ | 25.1 | $ | 45.4 | $ | 21.7 | $ | (67.1 | ) | $ | 25.1 |
Parent Company | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||||||||||||
Net sales | $ | — | $ | 299.7 | $ | 236.7 | $ | (79.3) | $ | 457.1 | |||||||||||||||||||
Cost of products sold | — | 192.8 | 150.1 | (79.3) | 263.6 | ||||||||||||||||||||||||
Gross profit | — | 106.9 | 86.6 | — | 193.5 | ||||||||||||||||||||||||
Selling, general and administrative expense | — | 51.2 | 36.1 | — | 87.3 | ||||||||||||||||||||||||
Advertising and sales promotion expense | — | 27.4 | 24.2 | — | 51.6 | ||||||||||||||||||||||||
Research and development expense | — | 12.6 | — | — | 12.6 | ||||||||||||||||||||||||
Restructuring charges | — | 8.9 | 8.2 | — | 17.1 | ||||||||||||||||||||||||
Interest expense associated with debt | 13.4 | 2.5 | 0.1 | — | 16.0 | ||||||||||||||||||||||||
Other expense, net | — | 0.6 | 0.7 | — | 1.3 | ||||||||||||||||||||||||
Intercompany service fees | — | (3.6) | 3.6 | — | — | ||||||||||||||||||||||||
Equity in earnings of subsidiaries | (9.7) | (11.5) | — | 21.2 | — | ||||||||||||||||||||||||
Earnings (loss) before income taxes | (3.7) | 18.8 | 13.7 | (21.2) | 7.6 | ||||||||||||||||||||||||
Income tax provision (benefit) | (3.3) | 9.1 | 2.2 | — | 8.0 | ||||||||||||||||||||||||
Net (loss) earnings | $ | (0.4) | $ | 9.7 | $ | 11.5 | $ | (21.2) | $ | (0.4) | |||||||||||||||||||
Statements of Comprehensive Loss: | |||||||||||||||||||||||||||||
Net (loss) earnings | $ | (0.4) | $ | 9.7 | $ | 11.5 | $ | (21.2) | $ | (0.4) | |||||||||||||||||||
Other comprehensive loss, net of tax | (12.1) | (12.1) | (11.6) | 23.7 | (12.1) | ||||||||||||||||||||||||
Total comprehensive loss | $ | (12.5) | $ | (2.4) | $ | (0.1) | $ | 2.5 | $ | (12.5) |
Parent Company | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||
Net sales | $ | — | $ | 406.7 | $ | 283.0 | $ | (81.6 | ) | $ | 608.1 | ||||||||
Cost of products sold | — | 230.8 | 157.8 | (81.6 | ) | 307.0 | |||||||||||||
Gross profit | — | 175.9 | 125.2 | — | 301.1 | ||||||||||||||
Selling, general and administrative expense | — | 65.2 | 39.1 | — | 104.3 | ||||||||||||||
Advertising and sales promotion expense | — | 42.8 | 32.8 | — | 75.6 | ||||||||||||||
Research and development expense | — | 15.5 | — | — | 15.5 | ||||||||||||||
Restructuring charges | — | 2.4 | 1.3 | — | 3.7 | ||||||||||||||
Gain on sale of Playtex gloves | — | — | — | — | — | ||||||||||||||
Interest expense associated with debt | 13.3 | 4.6 | 0.3 | — | 18.2 | ||||||||||||||
Other expense (income), net | — | (0.4 | ) | (1.6 | ) | — | (2.0 | ) | |||||||||||
Intercompany service fees | — | (4.2 | ) | 4.2 | — | — | |||||||||||||
Equity in earnings of subsidiaries | (74.8 | ) | (40.6 | ) | — | 115.4 | — | ||||||||||||
Earnings before income taxes | 61.5 | 90.6 | 49.1 | (115.4 | ) | 85.8 | |||||||||||||
Income tax provision (benefit) | (3.6 | ) | 15.8 | 8.5 | — | 20.7 | |||||||||||||
Net earnings (loss) | $ | 65.1 | $ | 74.8 | $ | 40.6 | $ | (115.4 | ) | $ | 65.1 | ||||||||
Statements of Comprehensive Income: | |||||||||||||||||||
Net earnings (loss) | $ | 65.1 | $ | 74.8 | $ | 40.6 | $ | (115.4 | ) | $ | 65.1 | ||||||||
Other comprehensive income (loss), net of tax | 15.0 | 15.0 | 14.4 | (29.4 | ) | 15.0 | |||||||||||||
Total comprehensive income (loss) | $ | 80.1 | $ | 89.8 | $ | 55.0 | $ | (144.8 | ) | $ | 80.1 |
Parent Company | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||
Net sales | $ | — | $ | 718.8 | $ | 510.5 | $ | (152.9 | ) | $ | 1,076.4 | ||||||||
Cost of products sold | — | 426.2 | 302.7 | (152.9 | ) | 576.0 | |||||||||||||
Gross profit | — | 292.6 | 207.8 | — | 500.4 | ||||||||||||||
Selling, general and administrative expense | — | 127.4 | 74.8 | — | 202.2 | ||||||||||||||
Advertising and sales promotion expense | — | 69.3 | 55.3 | — | 124.6 | ||||||||||||||
Research and development expense | — | 31.6 | — | — | 31.6 | ||||||||||||||
Restructuring charges | — | 2.4 | 1.3 | — | 3.7 | ||||||||||||||
Gain on sale of Playtex gloves | — | (15.9 | ) | — | — | (15.9 | ) | ||||||||||||
Interest expense associated with debt | 26.7 | 8.8 | 0.5 | — | 36.0 | ||||||||||||||
Other expense (income), net | — | (0.9 | ) | 0.2 | — | (0.7 | ) | ||||||||||||
Intercompany service fees | — | (11.1 | ) | 11.1 | — | — | |||||||||||||
Equity in earnings of subsidiaries | (91.3 | ) | (53.4 | ) | — | 144.7 | — | ||||||||||||
Earnings before income taxes | 64.6 | 134.4 | 64.6 | (144.7 | ) | 118.9 | |||||||||||||
Income tax provision (benefit) | (7.2 | ) | 43.1 | 11.2 | — | 47.1 | |||||||||||||
Net earnings (loss) | $ | 71.8 | $ | 91.3 | $ | 53.4 | $ | (144.7 | ) | $ | 71.8 | ||||||||
Statements of Comprehensive Income: | |||||||||||||||||||
Net earnings (loss) | $ | 71.8 | $ | 91.3 | $ | 53.4 | $ | (144.7 | ) | $ | 71.8 | ||||||||
Other comprehensive income (loss), net of tax | 25.1 | 25.1 | 24.0 | (49.1 | ) | 25.1 | |||||||||||||
Total comprehensive income (loss) | $ | 96.9 | $ | 116.4 | $ | 77.4 | $ | (193.8 | ) | $ | 96.9 |
Parent Company | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Current assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 73.0 | $ | 178.8 | $ | — | $ | 251.8 | |||||||||||||||||||
Trade receivables, net | — | 44.1 | 139.1 | — | 183.2 | ||||||||||||||||||||||||
Inventories | — | 198.8 | 168.2 | — | 367.0 | ||||||||||||||||||||||||
Other current assets | — | 63.3 | 81.3 | — | 144.6 | ||||||||||||||||||||||||
Total current assets | — | 379.2 | 567.4 | — | 946.6 | ||||||||||||||||||||||||
Investment in subsidiaries | 3,411.8 | 1,018.7 | — | (4,430.5) | — | ||||||||||||||||||||||||
Intercompany receivables, net (1) | — | 892.6 | 66.8 | (959.4) | — | ||||||||||||||||||||||||
Property, plant and equipment, net | — | 279.5 | 105.3 | — | 384.8 | ||||||||||||||||||||||||
Goodwill | — | 733.0 | 297.8 | — | 1,030.8 | ||||||||||||||||||||||||
Other intangible assets, net | — | 639.2 | 204.5 | — | 843.7 | ||||||||||||||||||||||||
Other assets | 0.3 | 28.0 | 69.0 | — | 97.3 | ||||||||||||||||||||||||
Total assets | $ | 3,412.1 | $ | 3,970.2 | $ | 1,310.8 | $ | (5,389.9) | $ | 3,303.2 | |||||||||||||||||||
Liabilities and Shareholders' Equity | |||||||||||||||||||||||||||||
Current liabilities | $ | 6.5 | $ | 256.9 | $ | 199.1 | $ | — | $ | 462.5 | |||||||||||||||||||
Intercompany payables, net (1) | 959.4 | — | — | (959.4) | — | ||||||||||||||||||||||||
Long-term debt | 1,098.1 | — | — | — | 1,098.1 | ||||||||||||||||||||||||
Deferred income tax liabilities | — | 71.7 | 12.3 | — | 84.0 | ||||||||||||||||||||||||
Other liabilities | — | 229.8 | 80.7 | — | 310.5 | ||||||||||||||||||||||||
Total liabilities | 2,064.0 | 558.4 | 292.1 | (959.4) | 1,955.1 | ||||||||||||||||||||||||
Total shareholders' equity | 1,348.1 | 3,411.8 | 1,018.7 | (4,430.5) | 1,348.1 | ||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 3,412.1 | $ | 3,970.2 | $ | 1,310.8 | $ | (5,389.9) | $ | 3,303.2 |
Parent Company | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||
Assets | |||||||||||||||||||
Current assets | |||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 1.7 | $ | 242.9 | $ | — | $ | 244.6 | |||||||||
Trade receivables, net | — | 75.0 | 175.8 | — | 250.8 | ||||||||||||||
Inventories | — | 221.0 | 167.6 | — | 388.6 | ||||||||||||||
Other current assets | — | 49.3 | 88.5 | — | 137.8 | ||||||||||||||
Total current assets | — | 347.0 | 674.8 | — | 1,021.8 | ||||||||||||||
Investment in subsidiaries | 3,815.6 | 1,213.6 | — | (5,029.2 | ) | — | |||||||||||||
Intercompany receivables, net (1) | — | 886.4 | 30.9 | (917.3 | ) | — | |||||||||||||
Property, plant and equipment, net | — | 301.5 | 101.1 | — | 402.6 | ||||||||||||||
Goodwill | — | 1,037.4 | 407.3 | — | 1,444.7 | ||||||||||||||
Other intangible assets, net | — | 880.0 | 207.3 | — | 1,087.3 | ||||||||||||||
Other assets | 0.6 | 0.2 | 31.3 | — | 32.1 | ||||||||||||||
Total assets | $ | 3,816.2 | $ | 4,666.1 | $ | 1,452.7 | $ | (5,946.5 | ) | $ | 3,988.5 | ||||||||
Liabilities and Shareholders' Equity | |||||||||||||||||||
Current liabilities | $ | 19.5 | $ | 286.2 | $ | 202.9 | $ | — | $ | 508.6 | |||||||||
Intercompany payables, net (1) | 917.3 | — | — | (917.3 | ) | — | |||||||||||||
Long-term debt | 1,097.3 | 215.0 | — | — | 1,312.3 | ||||||||||||||
Deferred income tax liabilities | — | 155.0 | 20.5 | — | 175.5 | ||||||||||||||
Other liabilities | — | 194.3 | 15.7 | — | 210.0 | ||||||||||||||
Total liabilities | 2,034.1 | 850.5 | 239.1 | (917.3 | ) | 2,206.4 | |||||||||||||
Total shareholders' equity | 1,782.1 | 3,815.6 | 1,213.6 | (5,029.2 | ) | 1,782.1 | |||||||||||||
Total liabilities and shareholders' equity | $ | 3,816.2 | $ | 4,666.1 | $ | 1,452.7 | $ | (5,946.5 | ) | $ | 3,988.5 |
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 flow (used by) from operations | $ | (21.0) | $ | 135.4 | $ | 1.8 | $ | (163.1) | $ | (46.9) | |||||||||||||||||||
Cash Flow from Investing Activities | |||||||||||||||||||||||||||||
Capital expenditures | — | (4.7) | (2.9) | — | (7.6) | ||||||||||||||||||||||||
Proceeds from sale of Infant and Pet Care business | — | 95.8 | — | — | 95.8 | ||||||||||||||||||||||||
Collection of deferred purchase price from accounts receivable sold | — | 2.8 | — | — | 2.8 | ||||||||||||||||||||||||
Proceeds from sale of assets | — | — | — | — | — | ||||||||||||||||||||||||
Intercompany receivable/payable, net | — | (22.5) | — | 22.5 | — | ||||||||||||||||||||||||
Other, net | — | — | (1.3) | — | (1.3) | ||||||||||||||||||||||||
Net cash from (used by) investing activities | — | 71.4 | (4.2) | 22.5 | 89.7 | ||||||||||||||||||||||||
Cash Flow from Financing Activities | |||||||||||||||||||||||||||||
Cash proceeds from debt with original maturities greater than 90 days | — | 50.0 | — | — | 50.0 | ||||||||||||||||||||||||
Cash payments on debt with original maturities greater than 90 days | — | (167.0) | — | — | (167.0) | ||||||||||||||||||||||||
Net (decrease) increase in debt with original maturities of 90 days or less | — | (2.1) | 2.0 | — | (0.1) | ||||||||||||||||||||||||
Intercompany receivable/payable, net | 22.5 | — | — | (22.5) | — | ||||||||||||||||||||||||
Intercompany dividends | — | — | (163.1) | 163.1 | — | ||||||||||||||||||||||||
Net financing outflow from the Accounts Receivable Facility | — | (14.9) | — | — | (14.9) | ||||||||||||||||||||||||
Employee shares withheld for taxes | (1.5) | — | — | — | (1.5) | ||||||||||||||||||||||||
Other, net | — | (2.4) | — | — | (2.4) | ||||||||||||||||||||||||
Net cash from (used by) financing activities | 21.0 | (136.4) | (161.1) | 140.6 | (135.9) | ||||||||||||||||||||||||
Effect of exchange rate changes on cash | — | — | 3.3 | — | 3.3 | ||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | — | 70.4 | (160.2) | — | (89.8) | ||||||||||||||||||||||||
Cash and cash equivalents, beginning of period | — | 2.6 | 339.0 | — | 341.6 | ||||||||||||||||||||||||
Cash and cash equivalents, end of period | — | 73.0 | 178.8 | — | 251.8 |
Parent Company | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||
Net cash flow (used by) from operations | $ | (14.8 | ) | $ | (1.1 | ) | $ | 29.0 | $ | (45.0 | ) | $ | (31.9 | ) | |||||
Cash Flow from Investing Activities | |||||||||||||||||||
Capital expenditures | — | (15.1 | ) | (7.8 | ) | — | (22.9 | ) | |||||||||||
Collection of deferred purchase price from accounts receivable sold | — | 5.0 | — | — | 5.0 | ||||||||||||||
Proceeds from sale of assets | — | 4.0 | — | — | 4.0 | ||||||||||||||
Intercompany receivables and payables, net | — | (17.3 | ) | — | 17.3 | — | |||||||||||||
Payment for equity contributions | (1.0 | ) | — | — | 1.0 | — | |||||||||||||
Net cash (used by) from investing activities | (1.0 | ) | (23.4 | ) | (7.8 | ) | 18.3 | (13.9 | ) | ||||||||||
Cash Flow from Financing Activities | |||||||||||||||||||
Cash proceeds from debt with original maturities greater than 90 days | — | 253.0 | — | — | 253.0 | ||||||||||||||
Cash payments on debt with original maturities greater than 90 days | — | (45.0 | ) | — | — | (45.0 | ) | ||||||||||||
Term Loan repayment | — | (185.0 | ) | — | — | (185.0 | ) | ||||||||||||
Net (decrease) increase in debt with original maturities of 90 days or less | — | (1.6 | ) | 5.1 | — | 3.5 | |||||||||||||
Intercompany dividend | — | — | (45.0 | ) | 45.0 | — | |||||||||||||
Net financing outflow from the Accounts Receivable Facility | — | 2.3 | — | — | 2.3 | ||||||||||||||
Intercompany receivables and payables, net | 17.3 | — | — | (17.3 | ) | — | |||||||||||||
Proceeds for equity contribution | — | — | 1.0 | (1.0 | ) | — | |||||||||||||
Employee shares withheld for taxes | (1.5 | ) | — | — | — | (1.5 | ) | ||||||||||||
Net cash from (used by) financing activities | 15.8 | 23.7 | (38.9 | ) | 26.7 | 27.3 | |||||||||||||
Effect of exchange rate changes on cash | — | — | (3.3 | ) | — | (3.3 | ) | ||||||||||||
Net decrease in cash and cash equivalents | — | (0.8 | ) | (21.0 | ) | — | (21.8 | ) | |||||||||||
Cash and cash equivalents, beginning of period | — | 2.5 | 263.9 | — | 266.4 | ||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | 1.7 | $ | 242.9 | $ | — | $ | 244.6 |
Parent Company | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||||||||||||
Net cash flow (used by) from operations | $ | 1.5 | $ | (24.6) | $ | 21.7 | $ | (45.0) | $ | (46.4) | |||||||||||||||||||
Cash Flow from Investing Activities | |||||||||||||||||||||||||||||
Capital expenditures | — | (6.5) | (2.9) | — | (9.4) | ||||||||||||||||||||||||
Collection of deferred purchase price from accounts receivable sold | — | 2.5 | — | — | 2.5 | ||||||||||||||||||||||||
Proceeds from sale of assets | — | 4.0 | — | — | 4.0 | ||||||||||||||||||||||||
Net cash used by investing activities | — | — | (2.9) | — | (2.9) | ||||||||||||||||||||||||
Cash Flow from Financing Activities | |||||||||||||||||||||||||||||
Cash proceeds from debt with original maturities greater than 90 days | — | 137.0 | — | — | 137.0 | ||||||||||||||||||||||||
Cash payments on debt with original maturities greater than 90 days | — | (105.0) | — | — | (105.0) | ||||||||||||||||||||||||
Net (decrease) increase in debt with original maturities of 90 days or less | — | (2.6) | 1.7 | — | (0.9) | ||||||||||||||||||||||||
Intercompany dividend | — | — | (45.0) | 45.0 | — | ||||||||||||||||||||||||
Net financing outflow from the Accounts Receivable Facility | — | (5.1) | — | — | (5.1) | ||||||||||||||||||||||||
Employee shares withheld for taxes | (1.5) | — | — | — | (1.5) | ||||||||||||||||||||||||
Net cash from (used by) financing activities | (1.5) | 24.3 | (43.3) | 45.0 | 24.5 | ||||||||||||||||||||||||
Effect of exchange rate changes on cash | — | — | (1.7) | — | (1.7) | ||||||||||||||||||||||||
Net decrease in cash and cash equivalents | — | (0.3) | (26.2) | — | (26.5) | ||||||||||||||||||||||||
Cash and cash equivalents, beginning of period | — | 2.5 | 263.9 | — | 266.4 | ||||||||||||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | 2.2 | $ | 237.7 | $ | — | $ | 239.9 |
Parent Company | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||
Net cash flow from (used by) operations | $ | 126.5 | $ | 108.0 | $ | 129.8 | $ | (302.7 | ) | $ | 61.6 | ||||||||
Cash Flow from Investing Activities | |||||||||||||||||||
Capital expenditures | — | (22.3 | ) | (5.3 | ) | — | (27.6 | ) | |||||||||||
Acquisitions, net of cash acquired | — | — | (90.3 | ) | — | (90.3 | ) | ||||||||||||
Collection of deferred purchase price from accounts receivable sold | — | 5.3 | — | — | 5.3 | ||||||||||||||
Playtex gloves sale | — | 19.0 | — | — | 19.0 | ||||||||||||||
Proceeds from sale of assets | — | 4.7 | — | — | 4.7 | ||||||||||||||
Net cash (used by) from investing activities | — | 6.7 | (95.6 | ) | — | (88.9 | ) | ||||||||||||
Cash Flow from Financing Activities | |||||||||||||||||||
Cash proceeds from debt with original maturities greater than 90 days | — | 305.0 | — | — | 305.0 | ||||||||||||||
Cash payments on debt with original maturities greater than 90 days | — | (427.0 | ) | — | — | (427.0 | ) | ||||||||||||
Net (decrease) increase in debt with original maturities of 90 days or less | — | (2.2 | ) | 1.0 | — | (1.2 | ) | ||||||||||||
Common shares purchased | (124.4 | ) | — | — | — | (124.4 | ) | ||||||||||||
Intercompany dividend | — | — | (302.7 | ) | 302.7 | — | |||||||||||||
Net financing inflow from the Accounts Receivable Facility | — | 6.5 | — | — | 6.5 | ||||||||||||||
Employee shares withheld for taxes | (2.1 | ) | — | — | — | (2.1 | ) | ||||||||||||
Net cash (used by) from financing activities | (126.5 | ) | (117.7 | ) | (301.7 | ) | 302.7 | (243.2 | ) | ||||||||||
Effect of exchange rate changes on cash | — | — | 11.2 | — | 11.2 | ||||||||||||||
Net increase in cash and cash equivalents | — | (3.0 | ) | (256.3 | ) | — | (259.3 | ) | |||||||||||
Cash and cash equivalents, beginning of period | — | 6.4 | 496.5 | — | 502.9 | ||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | 3.4 | $ | 240.2 | $ | — | $ | 243.6 |
Quarter Ended March 31, | |||||||||||||||
Net Earnings | Diluted EPS | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net Earnings and Diluted EPS - GAAP | $ | 48.2 | $ | 65.1 | $ | 0.89 | $ | 1.20 | |||||||
Restructuring and related costs (1) | 15.4 | 3.7 | 0.28 | 0.07 | |||||||||||
Feminine and Infant Care evaluation costs (2) | 1.0 | — | 0.02 | — | |||||||||||
Jack Black acquisition and integration (3) | 0.5 | 2.6 | 0.01 | 0.05 | |||||||||||
Sun Care reformulation costs (4) | 0.4 | — | 0.01 | — | |||||||||||
Income taxes (5) | (4.0 | ) | (0.5 | ) | (0.08 | ) | (0.01 | ) | |||||||
Adjusted Net Earnings and Adjusted Diluted EPS - Non-GAAP | $ | 61.5 | $ | 70.9 | $ | 1.13 | $ | 1.31 | |||||||
Weighted-average shares outstanding - Diluted | 54.3 | 54.1 |
Six Months Ended March 31, | |||||||||||||||
Net Earnings | Diluted EPS | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net Earnings and Diluted EPS - GAAP | $ | 47.8 | $ | 71.8 | $ | 0.88 | $ | 1.31 | |||||||
Restructuring and related costs (1) | 33.9 | 3.7 | 0.62 | 0.07 | |||||||||||
Feminine and Infant Care evaluation costs (2) | 1.0 | — | 0.02 | — | |||||||||||
Jack Black acquisition and integration (3) | 1.0 | 2.6 | 0.02 | 0.05 | |||||||||||
Investor settlement expense (4) | 0.9 | — | 0.02 | — | |||||||||||
Sun Care reformulation costs (5) | 0.5 | — | 0.01 | — | |||||||||||
Gain on sale of Playtex gloves | — | (15.9 | ) | — | (0.29 | ) | |||||||||
Income taxes (6) | (3.4 | ) | 20.0 | (0.07 | ) | 0.36 | |||||||||
Adjusted Net Earnings and Adjusted Diluted EPS - Non-GAAP | $ | 81.7 | $ | 82.2 | $ | 1.50 | $ | 1.50 | |||||||
Weighted-average shares outstanding - Diluted | 54.3 | 54.9 |
Net Sales - Total Company | |||||||||||||
Quarter and Six Months Ended March 31, 2019 | |||||||||||||
Q2 | % Chg | Six Months | %Chg | ||||||||||
Net sales - prior year | $ | 608.1 | $ | 1,076.4 | |||||||||
Organic | (54.1 | ) | (8.9 | )% | (70.3 | ) | (6.5 | )% | |||||
Impact of Jack Black acquisition | 5.3 | 0.9 | % | 17.1 | 1.6 | % | |||||||
Impact of Playtex gloves sale | — | — | % | (1.0 | ) | (0.1 | )% | ||||||
Impact of currency | (12.6 | ) | (2.1 | )% | (18.4 | ) | (1.7 | )% | |||||
Net sales - current year | $ | 546.7 | (10.1 | )% | $ | 1,003.8 | (6.7 | )% |
Six Months Ended March 31, 2019 | Six Months Ended March 31, 2018 | ||||||||||||||||||||||
Reported | Adjustments (1) | Adjusted (Non-GAAP) | Reported | Adjustments (1) | Adjusted (Non-GAAP) | ||||||||||||||||||
Earnings before income taxes | 71.3 | $ | 37.3 | $ | 108.6 | 118.9 | $ | (9.6 | ) | $ | 109.3 | ||||||||||||
Income tax provision | 23.5 | 3.4 | 26.9 | 47.1 | (20.0 | ) | 27.1 | ||||||||||||||||
Net earnings | $ | 47.8 | $ | 33.9 | $ | 81.7 | $ | 71.8 | $ | 10.4 | $ | 82.2 | |||||||||||
Effective tax rate | 33.0 | % | 39.7 | % | |||||||||||||||||||
Adjusted effective tax rate | 24.9 | % | 24.8 | % |
Quarter Ended December 31, | |||||||||||||||||||||||||||||||||||||||||
Net Earnings | Diluted EPS | ||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||
Net (Loss) Earnings and Diluted EPS — GAAP | $ | 22.4 | $ | (0.4) | $ | 0.41 | $ | (0.01) | |||||||||||||||||||||||||||||||||
Restructuring and related costs, net | 8.0 | 18.5 | 0.15 | 0.34 | |||||||||||||||||||||||||||||||||||||
Acquisition and integration planning costs | 6.2 | 0.5 | 0.11 | 0.01 | |||||||||||||||||||||||||||||||||||||
Gain on sale of Infant and Pet Care business | (5.2) | — | (0.10) | — | |||||||||||||||||||||||||||||||||||||
Feminine and Infant Care evaluation costs | 0.3 | — | 0.01 | — | |||||||||||||||||||||||||||||||||||||
Sun Care reformulation costs | — | 0.1 | — | — | |||||||||||||||||||||||||||||||||||||
Investor settlement expense | — | 0.9 | — | 0.02 | |||||||||||||||||||||||||||||||||||||
Income taxes (1) | (1.8) | 0.6 | (0.03) | 0.01 | |||||||||||||||||||||||||||||||||||||
Adjusted Net Earnings and Adjusted Diluted EPS — Non-GAAP | $ | 29.9 | $ | 20.2 | $ | 0.55 | $ | 0.37 | |||||||||||||||||||||||||||||||||
Weighted-average shares outstanding — Diluted | 54.4 | 54.1 |
Net Sales - Total Company | |||||||||||
Quarter Ended December 31, 2019 | |||||||||||
Q1 | % Chg | ||||||||||
Net sales - prior year | $ | 457.1 | |||||||||
Organic | — | — | % | ||||||||
Impact of Infant and Pet Care divestiture | (1.0) | (0.2) | % | ||||||||
Impact of currency | (2.1) | (0.5) | % | ||||||||
Net sales - current year | $ | 454.0 | (0.7) | % |
Three Months Ended December 31, 2019 | Three Months Ended December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reported | Adjustments (1) | Adjusted (Non-GAAP) | Reported | Adjustments (1) | Adjusted (Non-GAAP) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings before income taxes | $ | 29.6 | $ | 9.3 | $ | 38.9 | $ | 7.6 | $ | 20.0 | $ | 27.6 | |||||||||||||||||||||||||||||||||||||||||||||||
Income tax provision | 7.2 | 1.8 | 9.0 | 8.0 | (0.6) | 7.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) earnings | $ | 22.4 | $ | 7.5 | $ | 29.9 | $ | (0.4) | $ | 20.6 | $ | 20.2 | |||||||||||||||||||||||||||||||||||||||||||||||
Effective tax rate | 24.4 | % | 105.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted effective tax rate | 23.2 | % | 26.6 | % |
Net Sales - Wet Shave | Net Sales - Wet Shave | |||||||||||||||||||||||
Quarter and Six Months Ended March 31, 2019 | ||||||||||||||||||||||||
Quarter Ended December 31, 2019 | Quarter Ended December 31, 2019 | |||||||||||||||||||||||
Q2 | % Chg | Six Months | % Chg | Q1 | % Chg | |||||||||||||||||||
Net sales - prior year | $ | 345.2 | $ | 639.3 | Net sales - prior year | $ | 287.7 | |||||||||||||||||
Organic | (41.0 | ) | (11.9 | )% | (42.9 | ) | (6.7 | )% | Organic | (9.4) | (3.3) | % | ||||||||||||
Impact of currency | (9.8 | ) | (2.8 | )% | (14.3 | ) | (2.2 | )% | Impact of currency | (1.3) | (0.4) | % | ||||||||||||
Net sales - current year | $ | 294.4 | (14.7 | )% | $ | 582.1 | (8.9 | )% | Net sales - current year | $ | 277.0 | (3.7) | % |
Segment Profit - Wet Shave | Segment Profit - Wet Shave | |||||||||||||||||||||||
Quarter and Six Months Ended March 31, 2019 | ||||||||||||||||||||||||
Quarter Ended December 31, 2019 | Quarter Ended December 31, 2019 | |||||||||||||||||||||||
Q2 | % Chg | Six Months | % Chg | Q1 | % Chg | |||||||||||||||||||
Segment profit - prior year | $ | 68.9 | $ | 122.6 | Segment profit - prior year | $ | 55.0 | |||||||||||||||||
Organic | (11.0 | ) | (16.0 | )% | (8.5 | ) | (6.9 | )% | Organic | (2.0) | (3.6) | % | ||||||||||||
Impact of currency | (2.2 | ) | (3.2 | )% | (3.4 | ) | (2.8 | )% | Impact of currency | (0.1) | (0.2) | % | ||||||||||||
Segment profit - current year | $ | 55.7 | (19.2 | )% | $ | 110.7 | (9.7 | )% | Segment profit - current year | $ | 52.9 | (3.8) | % |
Net Sales - Sun and Skin Care | |||||||||||||
Quarter and Six Months Ended March 31, 2019 | |||||||||||||
Q2 | % Chg | Six Months | % Chg | ||||||||||
Net sales - prior year | $ | 152.3 | $ | 211.4 | |||||||||
Organic | (10.1 | ) | (6.6 | )% | (12.4 | ) | (5.9 | )% | |||||
Impact of Jack Black acquisition | 5.3 | 3.5 | % | 17.1 | 8.1 | % | |||||||
Impact of Playtex gloves disposition | — | — | % | (1.0 | ) | (0.5 | )% | ||||||
Impact of currency | (2.3 | ) | (1.6 | )% | (3.2 | ) | (1.5 | )% | |||||
Net sales - current year | $ | 145.2 | (4.7 | )% | $ | 211.9 | 0.2 | % |
Net Sales - Sun and Skin Care | |||||||||||
Quarter Ended December 31, 2019 | |||||||||||
Q1 | % Chg | ||||||||||
Net sales - prior year | $ | 66.7 | |||||||||
Organic | 9.1 | 13.6 | % | ||||||||
Impact of currency | (0.7) | (1.0) | % | ||||||||
Net sales - current year | $ | 75.1 | 12.6 | % |
Segment Profit - Sun and Skin Care | Segment Profit - Sun and Skin Care | |||||||||||||||||||||||
Quarter and Six Months Ended March 31, 2019 | ||||||||||||||||||||||||
Quarter Ended December 31, 2019 | Quarter Ended December 31, 2019 | |||||||||||||||||||||||
Q2 | % Chg | Six Months | % Chg | Q1 | % Chg | |||||||||||||||||||
Segment profit - prior year | $ | 48.6 | $ | 42.4 | Segment profit - prior year | $ | (0.6) | |||||||||||||||||
Organic | (9.1 | ) | (18.7 | )% | (7.3 | ) | (17.2 | )% | Organic | 0.8 | 133.3 | % | ||||||||||||
Impact of Jack Black acquisition | 1.4 | 2.9 | % | 5.3 | 12.5 | % | ||||||||||||||||||
Impact of Playtex gloves disposition | — | — | % | (0.3 | ) | (0.7 | )% | |||||||||||||||||
Impact of currency | (0.4 | ) | (0.9 | )% | (0.2 | ) | (0.5 | )% | Impact of currency | (0.1) | (16.6) | % | ||||||||||||
Segment profit - current year | $ | 40.5 | (16.7 | )% | $ | 39.9 | (5.9 | )% | ||||||||||||||||
Segment loss - current year | Segment loss - current year | $ | 0.1 | 116.7 | % |
Net Sales - Feminine Care | Net Sales - Feminine Care | |||||||||||||||||||||||
Quarter and Six Months Ended March 31, 2019 | ||||||||||||||||||||||||
Quarter Ended December 31, 2019 | Quarter Ended December 31, 2019 | |||||||||||||||||||||||
Q2 | % Chg | Six Months | % Chg | Q1 | % Chg | |||||||||||||||||||
Net sales - prior year | $ | 80.3 | $ | 162.9 | Net sales - prior year | $ | 74.7 | |||||||||||||||||
Organic | (5.5 | ) | (6.8 | )% | (13.2 | ) | (8.1 | )% | Organic | 0.5 | 0.7 | % | ||||||||||||
Impact of currency | (0.2 | ) | (0.3 | )% | (0.4 | ) | (0.2 | )% | Impact of currency | (0.1) | (0.1) | % | ||||||||||||
Net sales - current year | $ | 74.6 | (7.1 | )% | $ | 149.3 | (8.3 | )% | Net sales - current year | $ | 75.1 | 0.6 | % |
Segment Profit - Feminine Care | |||||||||||||
Quarter and Six Months Ended March 31, 2019 | |||||||||||||
Q2 | %Chg | Six Months | % Chg | ||||||||||
Segment profit - prior year | $ | 9.9 | $ | 14.7 | |||||||||
Organic | 4.0 | 40.4 | % | 6.8 | 46.3 | % | |||||||
Impact of currency | (0.2 | ) | (1.9 | )% | (0.3 | ) | (2.1 | )% | |||||
Segment profit - current year | $ | 13.7 | 38.5 | % | $ | 21.2 | 44.2 | % |
Segment Profit - Feminine Care | |||||||||||
Quarter Ended December 31, 2019 | |||||||||||
Q1 | %Chg | ||||||||||
Segment profit - prior year | $ | 7.5 | |||||||||
Organic | 5.6 | 74.7 | % | ||||||||
Impact of currency | — | — | % | ||||||||
Segment profit - current year | $ | 13.1 | 74.7 | % |
Net Sales - All Other | |||||||||||||
Quarter and Six Months Ended March 31, 2019 | |||||||||||||
Q2 | %Chg | Six Months | % Chg | ||||||||||
Net sales - prior year | $ | 30.3 | $ | 62.8 | |||||||||
Organic | 2.5 | 8.3 | % | (1.8 | ) | (2.9 | )% | ||||||
Impact of currency | (0.3 | ) | (1.0 | )% | (0.5 | ) | (0.8 | )% | |||||
Net sales - current year | $ | 32.5 | 7.3 | % | $ | 60.5 | (3.7 | )% |
Net Sales - All Other | |||||||||||
Quarter Ended December 31, 2019 | |||||||||||
Q1 | %Chg | ||||||||||
Net sales - prior year | $ | 28.0 | |||||||||
Organic | (0.2) | (0.7) | % | ||||||||
Impact of divestiture | (1.0) | (3.6) | % | ||||||||
Impact of currency | — | — | % | ||||||||
Net sales - current year | $ | 26.8 | (4.3) | % |
Segment Profit - All Other | |||||||||||
Quarter Ended December 31, 2019 | |||||||||||
Q1 | %Chg | ||||||||||
Segment profit - prior year | $ | 1.2 | |||||||||
Organic | 0.3 | 25.0 | % | ||||||||
Impact of divestiture | 1.6 | 133.3 | % | ||||||||
Impact of currency | — | — | % | ||||||||
Segment profit - current year | $ | 3.1 | 158.3 | % |
Segment Profit - All Other | |||||||||||||
Quarter and Six Months Ended March 31, 2019 | |||||||||||||
Q2 | %Chg | Six Months | % Chg | ||||||||||
Segment profit - prior year | $ | 4.3 | $ | 11.4 | |||||||||
Organic | 2.0 | 46.5 | % | (3.9 | ) | (34.2 | )% | ||||||
Impact of currency | (0.3 | ) | (7.0 | )% | (0.3 | ) | (2.6 | )% | |||||
Segment profit - current year | $ | 6.0 | 39.5 | % | $ | 7.2 | (36.8 | )% |
Quarter Ended December 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
Corporate expenses | $ | 13.3 | $ | 13.7 | |||||||||||||
Restructuring and related costs | 8.0 | 18.5 | |||||||||||||||
Acquisition and integration planning costs | 6.2 | 0.5 | |||||||||||||||
Gain on sale of Infant and Pet Care business | (5.2) | — | |||||||||||||||
Feminine and Infant Care evaluation costs | 0.3 | — | |||||||||||||||
Sun Care reformulation | — | 0.1 | |||||||||||||||
Legal expense | — | 0.9 | |||||||||||||||
General corporate and other expenses | $ | 22.6 | $ | 33.7 | |||||||||||||
% of net sales | 5.0 | % | 7.4 | % |
Quarter Ended March 31, | Six Months Ended March 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Corporate expenses | $ | 16.7 | $ | 19.2 | $ | 30.4 | $ | 37.9 | |||||||
Restructuring and related costs (1) | 15.4 | 3.7 | 33.9 | 3.7 | |||||||||||
Feminine and Infant Care evaluation costs | 1.0 | — | 1.0 | — | |||||||||||
Jack Black acquisition and integration costs | 0.5 | 2.6 | 1.0 | 2.6 | |||||||||||
Investor settlement expense | — | — | 0.9 | — | |||||||||||
Sun Care reformulation costs | 0.4 | — | 0.5 | — | |||||||||||
Gain on sale of Playtex gloves | — | — | — | (15.9 | ) | ||||||||||
General corporate and other expenses | $ | 34.0 | $ | 25.5 | $ | 67.7 | $ | 28.3 | |||||||
% of net sales | 6.2 | % | 4.2 | % | 6.7 | % | 2.6 | % |
Six Months Ended March 31, | Three Months Ended December 31, | |||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||
Net cash (used by) from: | Net cash (used by) from: | |||||||||||||||||||||||
Operating activities | $ | (31.9 | ) | $ | 61.6 | Operating activities | $ | (46.9) | $ | (46.4) | ||||||||||||||
Investing activities | (13.9 | ) | (88.9 | ) | Investing activities | 89.7 | (2.9) | |||||||||||||||||
Financing activities | 27.3 | (243.2 | ) | Financing activities | (135.9) | 24.5 | ||||||||||||||||||
Effect of exchange rate changes on cash | (3.3 | ) | 11.2 | Effect of exchange rate changes on cash | 3.3 | (1.7) | ||||||||||||||||||
Net decrease in cash and cash equivalents | $ | (21.8 | ) | $ | (259.3 | ) | Net decrease in cash and cash equivalents | $ | (89.8) | $ | (26.5) |
Period | Total Number of Shares Purchased (1) (2) | Average Price Paid per share (3) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Maximum Number that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
October 1 to 31, 2019 | 90 | $ | 29.85 | — | 10,000,000 | |||||||||||||||||||||
November 1 to 30, 2019 | 42,354 | 32.48 | — | 10,000,000 | ||||||||||||||||||||||
December 1 to 31, 2019 | — | — | — | 10,000,000 |
Period | Total Number of Shares Purchased (1) (2) | Average Price Paid per share (3) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Maximum Number that May Yet Be Purchased Under the Plans or Programs | |||||||||
January 1 to 31, 2019 | 324 | $ | 37.30 | — | 10,000,000 | ||||||||
February 1 to 28, 2019 | — | — | — | 10,000,000 | |||||||||
March 1 to 31, 2019 | — | — | — | 10,000,000 |
Exhibit Number | Exhibit | ||||
3.1 | |||||
3.2 | |||||
3.3 | |||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
101 | The following materials from the Edgewell Personal Care Company Quarterly Report on Form 10-Q formatted in inline eXtensible Business Reporting Language | ||||
104 | The cover page from the Company’s Form 10-Q for the quarterly period ended December 31, 2019, formatted in iXBRL (Inline eXtensible Business Reporting Language) and contained in Exhibit 101 |
EDGEWELL PERSONAL CARE COMPANY | ||||||||||||||
Registrant | ||||||||||||||
By: | /s/ Jennifer Seeser | |||||||||||||
Jennifer Seeser | ||||||||||||||
Chief Accounting Officer | ||||||||||||||
Date: |