SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________

(Exact name of registrant as specified in its charter)



Title of each class	~~Stock symbol~~Trading symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	EPC	New York Stock Exchange

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

Common shares, $0.01 par value - ~~54,160,966~~54,338,877 shares as of ~~July 31, 2019.~~

EDGEWELL PERSONAL CARE COMPANY



PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited).
	Condensed Consolidated Statements of Earnings and Comprehensive Income for the three and ~~nine~~six months ended ~~June 30, 2019~~March 31, 2020 and ~~2018.~~2019.	3
	Condensed Consolidated Balance Sheets as of ~~June 30, 2019~~March 31, 2020 and September 30, ~~2018.~~2019.	4
	Condensed Consolidated Statements of Cash Flows for the ~~nine~~six months ended ~~June 30, 2019~~March 31, 2020 and ~~2018.~~2019.	5
	Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three and ~~nine~~six months ended ~~June 30, 2019~~March 31, 2020 and ~~2018.~~2019.	6
	Notes to Condensed Consolidated Financial Statements.	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	3424
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	4738
Item 4.	Controls and Procedures.	4839

PART II.	OTHER INFORMATION
Item 1A.	Risk Factors	40
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	4940
Item 6.	Exhibits.	4941

SIGNATURE		5042

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited).

EDGEWELL PERSONAL CARE COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME

(unaudited, in millions, except per share data)


	Three Months Ended March 31,						Six Months Ended March 31,
	2020		2019		2020		2019
Net sales	$	523.0	$	546.7	$	977.0	$	1,003.8
Cost of products sold	280.0		295.8		540.9		559.4
Gross profit	243.0		250.9		436.1		444.4

Selling, general and administrative expense	121.5		98.1		216.5		185.4
Advertising and sales promotion expense	47.0		47.9		88.1		99.5
Research and development expense	13.9		14.0		27.7		26.6
Restructuring charges	6.5		13.5		12.6		30.6
Gain on sale of Infant and Pet Care business	1.1		—		(4.1)		—
Interest expense associated with debt	13.9		16.4		28.2		32.4
Other expense (income), net	10.9		(2.7)		9.3		(1.4)
Earnings before income taxes	28.2		63.7		57.8		71.3
Income tax provision	8.7		15.5		15.9		23.5
Net earnings	$	19.5	$	48.2	$	41.9	$	47.8

Earnings per share:
Basic net earnings per share	$	0.36	$	0.89	$	0.77	$	0.88
Diluted net earnings per share	$	0.36	$	0.89	$	0.77	$	0.88

Statements of Comprehensive Income:
Net earnings	$	19.5	$	48.2	$	41.9	$	47.8
Other comprehensive (loss) income, net of tax
Foreign currency translation adjustments	(27.9)		(11.2)		(6.4)		(22.0)
Pension and postretirement activity, net of tax of $0.5, $0.2, $(0.1) and $0.3	0.8		0.3		(0.7)		0.3
Deferred gain (loss) on hedging activity, net of tax of $0.7, $0.2, $0.1 and $(0.5)	1.6		0.3		0.3		(1.0)
Total other comprehensive loss, net of tax	(25.5)		(10.6)		(6.8)		(22.7)
Total comprehensive (loss) income	$	(6.0)	$	37.6	$	35.1	$	25.1

See accompanying Notes to Condensed Consolidated Financial Statements.

EDGEWELL PERSONAL CARE COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS


	March 31, 2020		September 30, 2019
Assets
Current assets
Cash and cash equivalents	$	308.8	$	341.6
Trade receivables, less allowance for doubtful accounts of $8.5 and $5.6	209.8		205.6
Inventories	340.1		357.2
Other current assets	130.5		140.0
Total current assets	989.2		1,044.4
Property, plant and equipment, net	372.0		396.0
Goodwill	1,023.6		1,032.8
Other intangible assets, net	836.2		912.9
Other assets	87.5		34.8
Total assets	$	3,308.5	$	3,420.9

Liabilities and Shareholders’ Equity
Current liabilities
Current maturities of long-term debt	$	—	$	117.0
Notes payable	17.7		14.4
Accounts payable	190.3		222.8
Other current liabilities	278.2		305.4
Total current liabilities	486.2		659.6
Long-term debt	1,098.3		1,097.8
Deferred income tax liabilities	84.7		101.1
Other liabilities	292.0		258.9
Total liabilities	1,961.2		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; 54,323,530 and 54,206,746 outstanding	0.7		0.7
Additional paid-in capital	1,626.1		1,627.7
Retained earnings	756.7		714.8
Common shares in treasury at cost, 10,928,459 and 11,045,243	(793.5)		(803.8)
Accumulated other comprehensive loss	(242.7)		(235.9)
Total shareholders’ equity	1,347.3		1,303.5
Total liabilities and shareholders’ equity	$	3,308.5	$	3,420.9

June 30,
2019 September 30,
2018
Assets
Current assets
Cash and cash equivalents $ 279.0
$ 266.4
Trade receivables, less allowance for doubtful accounts of $5.7 and $6.0 241.6
226.5
Inventories 372.7
329.5
Other current assets 142.3
128.8
Total current assets 1,035.6
951.2
Property, plant and equipment, net 400.7
424.1
Goodwill 1,060.2
1,450.8
Other intangible assets, net 921.4
1,099.0
Other assets 34.4
28.2
Total assets $ 3,452.3
$ 3,953.3

Liabilities and Shareholders’ Equity
Current liabilities
Current maturities of long-term debt $ 125.0
$ 184.9
Notes payable 12.6
8.2
Accounts payable 221.9
238.4
Other current liabilities 319.1
285.5
Total current liabilities 678.6
717.0
Long-term debt 1,097.5
1,103.8
Deferred income tax liabilities 118.7
176.1
Other liabilities 203.0
211.8
Total liabilities 2,097.8
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; 54,129,125 and 54,040,386 outstanding 0.7
0.7
Additional paid-in capital 1,632.8
1,628.3
Retained earnings 693.4
1,083.1
Common shares in treasury at cost, 11,122,864 and 11,211,603 (811.5 ) (819.2 )
Accumulated other comprehensive loss (160.9 ) (148.3 )
Total shareholders’ equity 1,354.5
1,744.6
Total liabilities and shareholders’ equity $ 3,452.3
$ 3,953.3

See accompanying Notes to Condensed Consolidated Financial Statements.

EDGEWELL PERSONAL CARE COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


	Six Months Ended March 31,
	2020		2019
Cash Flow from Operating Activities
Net earnings	$	41.9	$	47.8
Depreciation and amortization	44.5		46.4
Share-based compensation expense	10.2		10.0
Loss on sale of assets	0.3		0.9
Gain on sale of Infant and Pet Care business	(4.1)		—
Deferred compensation payments	(8.7)		(5.2)
Deferred income taxes	(15.5)		(0.3)
Other, net	8.9		4.5
Changes in operating assets and liabilities	(60.3)		(136.0)
Net cash from (used by) operating activities	17.2		(31.9)

Cash Flow from Investing Activities
Capital expenditures	(16.8)		(22.9)
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	3.3		5.0
Other, net	(1.2)		—
Net cash from (used by) from investing activities	81.1		(13.9)

Cash Flow from Financing Activities
Cash proceeds from debt with original maturities greater than 90 days	50.0		253.0
Cash payments on debt with original maturities greater than 90 days	(167.0)		(45.0)
Term Loan repayment	—		(185.0)
Net increase in debt with original maturities of 90 days or less	2.4		3.5
Net financing (outflow) inflow from the Accounts Receivable Facility	(14.4)		2.3
Employee shares withheld for taxes	(1.5)		(1.5)
Net cash (used by) from financing activities	(130.5)		27.3

Effect of exchange rate changes on cash	(0.6)		(3.3)

Net decrease in cash and cash equivalents	(32.8)		(21.8)
Cash and cash equivalents, beginning of period	341.6		266.4
Cash and cash equivalents, end of period	$	308.8	$	244.6

Nine Months Ended
June 30,
2019 2018
Cash Flow from Operating Activities
Net (loss) earnings $ (393.6 ) $ 83.9
Impairment charges 549.0
24.4
Depreciation and amortization 69.2
73.4
Share-based compensation expense 13.8
14.0
Loss (gain) on sale of assets 1.4
(13.0 )
Deferred compensation payments (7.3 ) (15.4 )
Deferred income taxes (56.8 ) (22.9 )
Other, net (0.3 ) 32.0
Changes in operating assets and liabilities (77.2 ) 5.1
Net cash from operating activities 98.2
181.5

Cash Flow from Investing Activities
Capital expenditures (38.7 ) (41.8 )
Acquisitions, net of cash acquired —
(90.2 )
Playtex gloves sale —
19.0
Proceeds from sale of assets 4.1
4.7
Collection of deferred purchase price on accounts receivable sold 9.0
7.2
Other, net (1.3 ) —
Net cash used by investing activities (26.9 ) (101.1 )

Cash Flow from Financing Activities
Cash proceeds from debt with original maturities greater than 90 days 316.0
477.0
Cash payments on debt with original maturities greater than 90 days (198.0 ) (722.0 )
Term Loan repayment (185.0 ) —
Net increase in debt with original maturities of 90 days or less 5.7
0.2
Common shares purchased —
(124.4 )
Net financing inflow from the Accounts Receivable Facility 5.6
4.6
Employee shares withheld for taxes (1.8 ) (2.2 )
Net cash used by financing activities (57.5 ) (366.8 )

Effect of exchange rate changes on cash (1.2 ) 2.0

Net increase (decline) in cash and cash equivalents 12.6
(284.4 )
Cash and cash equivalents, beginning of period 266.4
502.9
Cash and cash equivalents, end of period $ 279.0
$ 218.5

See accompanying Notes to Condensed Consolidated Financial Statements.

EDGEWELL PERSONAL CARE COMPANY

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(unaudited, in millions)


	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, 2019	65.2	$	0.7	(10.9)	$	(795.3)	$	1,622.7	$	737.2	$	(217.2)	$	1,348.1
Net earnings	—	—		—	—		—		19.5		—		19.5
Foreign currency translation adjustments	—	—		—	—		—		—		(27.9)		(27.9)
Pension and postretirement activity	—	—		—	—		—		—		0.8		0.8
Deferred gain on hedging activity	—	—		—	—		—		—		1.6		1.6
Activity under share plans	—	—		—	1.8		3.4		—		—		5.2
Balance at March 31, 2020	65.2	$	0.7	(10.9)	$	(793.5)	$	1,626.1	$	756.7	$	(242.7)	$	1,347.3


	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, 2019	65.2	$	0.7	(11.0)	$	(803.8)	$	1,627.7	$	714.8	$	(235.9)	$	1,303.5
Net earnings	—	—		—	—		—		41.9		—		41.9
Foreign currency translation adjustments	—	—		—	—		—		—		(6.4)		(6.4)
Pension and postretirement activity	—	—		—	—		—		—		(0.7)		(0.7)
Deferred gain on hedging activity	—	—		—	—		—		—		0.3		0.3
Activity under share plans	—	—		0.1	10.3		(1.6)		—		—		8.7
Balance at March 31, 2020	65.2	$	0.7	(10.9)	$	(793.5)	$	1,626.1	$	756.7	$	(242.7)	$	1,347.3


	Common Shares				Treasury Shares
	Number	Par Value		Number	Amount		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Shareholders’ Equity
Balance at 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 gain 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

See accompanying Notes to Condensed Consolidated Financial Statements.

EDGEWELL PERSONAL CARE COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited, in millions, except per share data)

Note 1 - Background and Basis of Presentation

Edgewell Personal Care Company, and its subsidiaries (collectively, “Edgewell” or the “Company”), is one of the world’s largest manufacturers and marketers of personal care products in the wet shave, sun and skin care, ~~feminine care,~~ and ~~infant~~feminine care categories. Edgewell ~~has a portfolio of over 25 brands and a global footprint~~operates in more than 20 countries with extensive retail reach across 50 ~~countries.~~markets.

The Company conducts its business in the following ~~four~~three segments:

•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, Jack Black® and Bulldog® men’s skin care products, and Wet Ones® wipes.

•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 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. 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.

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of the Company and its controlled subsidiaries and have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”), under the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). The preparation of the unaudited Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results may differ materially from those estimates. All intercompany balances and transactions have been eliminated in consolidation and, in the opinion of management, all normal recurring adjustments considered necessary for a fair presentation have been included in the interim results reported. The fiscal year-end balance sheet data was derived from audited consolidated financial statements, but do not include all of the annual disclosures required by GAAP; accordingly, these unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Company’s ~~Audited Annual Consolidated Financial Statements~~audited annual consolidated financial statements included in its Annual Report on Form 10-K filed with the SEC on November ~~19, 2018 (“2018 Annual Report”).~~26, 2019.

~~Statement of Cash Flows Presentation.~~ Certain amounts within Cash Flows from Operating Activities for the nine months ended June 30, 2018 have been reclassified to conform with the current period presentation. Net cash from operating activities for the nine months ended June 30, 2018 was not impacted by this change.

Recently Adopted Accounting Pronouncements.

In ~~May 2014,~~February 2016, the Financial ~~Accounting~~Account Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) which provides a single comprehensive revenue recognition model for all contracts with customers to improve comparability within industries, across industries, and across capital markets. During 2016, the FASB issued three ASUs clarifying the revenue recognition implementation guidance on various topics included within the original ASU. The Company adopted the ASU for revenue recognition beginning October 1, 2018 using the modified retrospective method. Revenues are primarily generated from the sale of finished products to customers. Those sales predominantly contain a single delivery element and revenue is recognized at a single point in time when the performance obligations within the contract have been completed. As a result, the adoption of the ASU did not have a material impact on the timing of revenue recognition. The adoption resulted in the recognition of a $5.3 inventory return asset included in Other current assets on the Condensed Consolidated Balance Sheet as of October 1, 2018 with an offsetting increase to the returns reserve in Other current liabilities. The adoption resulted in the recognition of a $1.3 liability for advanced payments from customers in Other current liabilities with a corresponding increase to Trade receivables to reclassify advanced payments from customers from contra-Trade receivables as of October 1, 2018. Refer to Note 2 in the Notes to the Condensed Consolidated Financial Statements for further discussion.

In August 2016, the FASB issued an ASU intended to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments provide guidance on specific cash flow issues, including debt prepayment or debt extinguishment costs, the sale of accounts receivable, contingent consideration payments on business combinations, proceeds from the settlement of insurance claims, and distributions received from equity method investees, among others. The Company adopted the ASU beginning October 1, 2018. The Company noted that the adoption of the ASU resulted in the reclassification of approximately $9.0 and $7.2 in operating cash inflows for the nine months ended June 30, 2019 and 2018, respectively, associated with the $150 uncommitted master accounts receivable purchase agreement entered into on September 15, 2017 with The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as the purchaser (the “Accounts Receivable Facility”) to investing cash inflows in the Consolidated Statement of Cash Flows.

In October 2016, the FASB issued ASU 2016-16 intended to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Under the new guidance, an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory, such as intellectual property and property, plant, and equipment, when the transfer occurs. The Company adopted the standard beginning October 1, 2018. The impact of the adoption of the ASU resulted in the recognition of a deferred tax asset and a credit to retained earnings of $3.9.

In January 2017, the FASB issued an ASU clarifying the definition of a business, reducing the number of transactions that need to be further evaluated, and providing a framework to assist entities in evaluating whether both an input and a substantive process are present. The amendments set forth in the ASU specify that when the fair value of the gross assets acquired or disposed of is concentrated in a single identifiable asset or a group of similarly identifiable assets, the integrated set of assets and activities is not a business. The guidance also requires that an integrated set of assets and activities must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output to be considered a business and removes the evaluation of whether a market participant could replace the missing elements. The Company adopted the ASU beginning October 1, 2018. The impact of the ASU will be dependent upon the nature of any future acquisitions or dispositions made by the Company.

In March 2017, the FASB issued an ASU intended to improve the presentation of net periodic pension and post-retirement benefit cost. The amendment changes these requirements so that only the service cost component is recorded in the same line item as other compensation costs for the applicable employees, and all other components of net periodic pension and post-retirement benefit cost are recorded on a separate line item outside of income from operations. The amendments also specify that only the service cost component is eligible for capitalization. The Company adopted the ASU as of October 1, 2018, applied the ASU retrospectively for the presentation of the cost components, and applied the ASU prospectively for the capitalization of the service cost component. The adoption impacted the Consolidated Statement of Operations for the quarter ended June 30, 2018 and resulted in a reclassification that increased Cost of products sold, Selling, general and administrative expense (“SG&A”), and decreased Other expense, net by $1.0, $0.6, and $1.6, respectively. The adoption impacted the Consolidated Statement of Operations for the nine months ended June 30, 2018 and resulted in a reclassification that increased Cost of products sold, SG&A, and decreased Other expense, net by $3.0, $2.1, and $5.1, respectively.

In May 2017, the FASB issued an ASU that clarifies the scope of accounting for modifications of share-based payment awards. The amendments provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The Company adopted the ASU beginning October 1, 2018 and noted that the impact on its financial statements was not material.

~~Recently Issued Accounting Pronouncements.~~ ~~In February 2016, the FASB issued an ASU~~2016-02, which amends existing lease accounting guidance to require recognition of lease assets and lease liabilities on the balance sheet for leases previously classified as operating leases. Additionally, this update requires qualitative disclosure along with specific quantitative disclosures. ~~Lessees~~The Company adopted the standard effective October 1, 2019, using the modified retrospective approach with no restatement of prior period amounts. As a result of adoption, the Company recognized leased right of use assets and ~~lessors will~~liabilities of $57.4 and $57.5, respectively. The impact to the Consolidated Statement of Earnings and Consolidated Statement of Cash Flows was not material for the first six months of fiscal 2020. Refer to Note 8 in the Notes to the Condensed Consolidated Financial Statements for further discussion.

In August 2017, the FASB issued ASU 2017-12, which eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires, for qualifying hedges, the entire change in the fair value of a hedging instrument to be ~~required~~presented in the same income statement line as the hedged item. The guidance also modifies the accounting for components excluded from the assessment of hedge effectiveness, eases documentation and assessment requirements and modifies certain disclosure requirements. The Company adopted the standard effective October 1, 2019. The impact from adoption of this new accounting pronouncement was not material to ~~recognize~~the Company's financial statements for the first six months of fiscal 2020.

In June 2018, the FASB issued ASU 2018-07, which simplifies the treatment of share-based payment transactions used in acquiring goods and ~~measure leases~~services from non-employees. The amendments note that measurement of share-based payments used to acquire goods or services should be valued at the ~~beginning~~grant-date fair value. The grant date is defined as the date at which the grantor and grantee reach a mutual understanding of the ~~earliest period presented using~~terms and conditions of the award. Finally, any awards containing a ~~modified retrospective approach.~~performance condition should be valued considering the probability of satisfying the necessary performance conditions consistent with employee share-based awards. The Company adopted the standard effective October 1, 2019. The impact from adopting this guidance was not material to the Company's financial statements for the first six months of fiscal 2020.

Recently Issued Accounting Pronouncements.

In June 2016, the FASB issued ASU 2016-13 intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The new guidance applies to all financial instruments, including trade receivables, and requires the measurement of all expected credit losses for financial assets held at a reporting date to be based on historical experience, current conditions and reasonable and supportable forecasts. Previous guidance did not include forward-looking information. The update will be effective for the Company beginning October 1, ~~2019, with~~2020 and early adoption permitted. The Company has begun assessing the impact of the standard, identified the components of the lease portfolio, and begun implementing business process changes and controls including new lease accounting software required to correctly apply the guidance across the organization. The Company will adopt this guidance October 1, 2019 with no restatement of prior period amounts.is permitted for fiscal years beginning after December 15, 2018. The Company is in the process of evaluating the impact, if any, this guidance will have on its ~~impact~~financial statements but does not expect it will be material and will be dependent on the ~~financial statements; however,~~credit quality of the ~~Company anticipates~~trade receivables outstanding at the ~~primary impacts will be a material increase in both assets and liabilities to include operating leases on the Consolidated Balance Sheet.~~

No other new accounting pronouncement issued or effective during fiscal 2019 which was not previously disclosed in the 2018 Annual Report had or is expected to have a material impact on our consolidated financial statements or related disclosures.

~~Note 2 - Revenue Recognition~~

~~On October 1, 2018, the Company adopted ASU 2014-09 which provided guidance for accounting for revenue from contracts with customers.~~date of adoption. The Company ~~adopted~~evaluates the ~~standard beginning October 1, 2018 using the modified retrospective method~~creditworthiness of customers when negotiating contracts and, applied the standard to contracts not completed at the adoption date. No adjustment to retained earnings was required on October 1, 2018. The adoption resulted in changes to how the Company reflects returns and advanced payments received from customers on the Consolidated Balance Sheet. Results for periods ending after October 1, 2018 are recognized and presented in accordance with the new standard, while prior period amounts have not been adjusted and continue to be reported in accordance with the prior accounting guidance.

Other impacts related to the adoption of the standard were not material to the Consolidated Financial Statements. Refer to Note 15 in the Notes to the Condensed Consolidated Financial Statements for the Company’s disaggregation of revenue by operating segments and products.

~~Practical Expedients~~

~~The Company elected to apply the following practical expedients when adopting ASU 2014-09:~~

~~Principal Revenue Streams and Significant Judgments~~

Our principal revenue streams can be divided into: i) sale of personal care products primarily through retailers in North America; ii) sale of personal care products through a combination of retailers and distributors internationally; and iii) production and sale of private brands products that are made to customer specifications.

~~Performance Obligations~~

The Company’s revenue is from the sale of its products. Revenue is recognized when the customer obtains control of the goods, which occurs when the ability to use and obtain benefits from the goods are passed to the customer, most commonly upon the delivery of goods to the customer. Discounts are offered to customers for early payment and an estimate of the discounts is recorded as a reduction of Net sales in the same period as the sale. The Company’s standard sales terms are final and returns or exchanges are not permitted with the exception of end of season returns for Sun Care products. Reserves are established and recorded in cases where the right of return does exist for a particular sale.

The Company assesses the goods promised in its customers’ purchase orders and identifies a performance obligation to transfer goods (or a bundle of goods) that is distinct. To identify the performance obligations, the Company considers all the goods promised, whether explicitly stated or implied based on customary business practices. The Company’s purchase orderstrade receivables are short term in nature, ~~lasting less than one~~the timing between recognition of a credit loss under existing guidance and the new guidance is not expected to differ materially.

In August 2018, the FASB issued ASU 2018-13 adjusting the disclosure requirements for fair value measurements. The guidance updates the disclosure requirements regarding leveling of fair value assets and the valuation of Level 3 fair value measurements. The standard will be effective for the Company beginning October 1, 2020 and early adoption is permitted. The Company is in the process of evaluating the impact, if any, this guidance will have on its financial statements but does not expect it will result in a material change to the financial statements and related disclosures.

In August 2018, the FASB issued ASU 2018-14, which modifies the disclosure requirements for defined benefit pension plans and other post retirement plans. The guidance removes disclosures that are no longer considered cost beneficial, clarifies the specific requirements of disclosures and adds disclosure requirements identified as relevant. The new standard will be effective for the Company beginning October 1, 2020 and early adoption is permitted. The Company is in the process of evaluating the impact, if any, this guidance will have on its financial statement but does not expect it will result in a material change to the financial statements.

In August 2018, the FASB issued ASU 2018-15, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments in this standard require an entity that is the customer in a hosting arrangement to follow the guidance on internal-use software to determine which implementation costs to capitalize and which costs to expense. The standard also requires a customer to expense the capitalized implementation costs of a hosting arrangement over the term of the hosting arrangement. The new guidance requires an entity to present the expense related to the capitalized implementation costs in the same line item in the statement of income as the fees associated with the hosting element of the arrangement and classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element. The entity is also required to present the capitalized implementation costs in the statement of financial position in the same line item that a prepayment for the fees of the associated hosting arrangement would be presented. The guidance is effective for the Company beginning October 1, 2020 and early adoption is permitted. The Company is in the process of evaluating the impact, if any, this guidance will have on its financial statements.

In December 2019, the FASB issued ASU 2019-12, which eliminates certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period when interim loss exceeds anticipated loss for the year, and ~~contain~~the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a ~~single delivery element. For a purchase order that has more than one performance obligation,~~step-up in the tax basis of goodwill. The standard will be effective for the Company ~~allocates the total consideration to each distinct performance obligation on a relative stand-alone selling price basis.~~beginning October 1, 2021, with early adoption permitted. The Company ~~does~~is in the process of evaluating the impact, if any, this guidance will have on its financial statements.

In March 2020, the FASB issued ASU 2020-04, which provides optional guidance to ease the potential burden in accounting for and recognizing the effects of reference rate reform on financial reporting. The amendments provide expedients and exceptions to GAAP for contracts, hedging relationships, and other transactions affected by reference rate reform including contracts within the scope of Topic 310 Receivables and Topic 470 Debt, which should be accounted for prospectively adjusting the effective interest rate. Modifications within the scope of Topic 842 should be accounted for as a continuation with no reassessment of lease classification and discount rate. Additionally, modifications of contracts do not ~~exclude variable consideration~~require an entity to reassess its original conclusion about whether that contract contains an embedded derivative. The Company is in ~~determining~~ the ~~remaining value~~process of ~~performance obligations.~~evaluating the impact, if any, this guidance will have on its financial statements including the evaluation of its debt hedging agreements.

~~Significant Judgments~~

Note 2 - Divestitures

~~Under certain circumstances,~~Sale of Infant and Pet Care Business

On December 17, 2019, the Company allows customers to return sun care products that have not been sold by the end of the Sun Care season, which is normal practice in the Sun Care industry. The Company records sales at the time that control of goods pass to the customer. The terms of these sales vary but, in all instances, the following conditions are met: (1) the sales arrangement is evidenced by purchase orders submitted by customers; (2) the selling price is fixed or determinable; (3) title to the product has transferred; (4) there is an obligation to pay at a specified date without any additional conditions or actions required by the Company; and (5) collectability is reasonably assured. Simultaneously with the sale, the Company reduces sales and cost of sales and reserves amounts on its Consolidated Balance Sheet for anticipated returns based upon an estimated return level in accordance with GAAP. Customers are required to pay for the Sun Care product purchased during the season under the required terms. The timing of returns of Sun Care products can vary in different regions based on climate and other factors. However, the majority of returns occur in the U.S. from September through January following the summer Sun Care season. The Company estimates the level of Sun Care returns as the Sun Care season progresses using a variety of inputs including historical experience, consumption trends during the Sun Care season, obsolescence factors including expiration dates, and inventory positions at key retailers. The Company monitors shipment activity and inventory levels at key retailers during the season in an effort to more accurately estimate potential returns. This allows the Company to manage shipment activity to its

customers, especially in the latter stages of the Sun Care season, to reduce the potential for returned product. The Company also allows for returns of other products under limited circumstances. Non-Sun Care returns are evaluated each period based on communications with customers and other issues known as of period end. The Company had a reserve for returns of $50.6 and $58.6 at June 30, 2019 and September 30, 2018, respectively. The adoption of ASU 2014-09 required changes in the presentation of returns on the Condensed Consolidated Balance Sheet, namely that a return asset should be recognized for returns expected to be resold, measured at the carrying amount of goods at the time of sale, less the expected costs to recover the goods and any expected reduction in value. The Company had an inventory return asset of $5.3 as of the adoption date. The Company recorded an inventory return asset of $3.2 as of June 30, 2019. The recognition of an inventory return asset resulted in a corresponding increase to the reserve for returns as of June 30, 2019. The inventory return asset and the reserve for returns are included in Other current assets and Other current liabilities, respectively, on the Condensed Consolidated Balance Sheet.

In addition, the Company offers a variety of programs, such as consumer coupons and rebate programs, primarily to its retail customers, designed to promote sales of its products. Such programs require periodic payments and allowances based on estimated results of specific programs and are recorded as a reduction to Net sales. The Company accrues, at the time of sale, the estimated total payments and allowances associated with each transaction. Additionally, the Company offers programs directly to consumers to promotecompleted the sale of its ~~products. Promotions which reduce the ultimate consumer sale prices are recorded as a reduction of Net sales at the time the promotional offer is made using estimated redemption~~Infant and ~~participation levels. Taxes the Company collects on behalf of governmental authorities, which are generally~~Pet Care business included in the ~~price~~All Other segment for $122.5, which included consideration for providing services to the ~~customer, are also recorded as~~purchaser for up to one year under a ~~reduction of Net sales.~~transition services agreement. The Company ~~continually assesses~~received proceeds of $107.5, which includes the ~~adequacy of accruals~~consideration for ~~customer~~providing support under the transition services agreement, and ~~consumer promotional program costs not yet paid. To~~ the ~~extent total program payments differ from estimates, adjustments may be necessary. Historically, these adjustments have not been material.~~

~~Contract Balances~~

~~The timing of revenue recognition is based on the customer’s receipt of goods. Standard payment terms with customers require payment after goods have been delivered~~remaining sales price receivable includes $7.5 reported in current assets and risk of ownership has transferred to the customer. The Company has contract liabilities as a result of advanced payments received from certain customers before goods have been delivered and all performance obligations have been completed. Contract liabilities$5.0 reported in other assets as of the adoption date were $1.3. Contract liabilities were $0.9 at June 30, 2019 and were classified within Other current liabilities on our Consolidated Balance Sheets. Of the amount deferred, substantially all will be recognized within a year, with the significant majority to be captured within a quarter following deferral.

~~Accounts receivable are stated at their net realizable value. The allowance for doubtful accounts reflects the Company’s best estimate of probable losses inherent~~March 31, 2020. Total assets included in the ~~receivables portfolio determined on~~sale were comprised of $18.8 of inventory, $3.6 of property, plant and equipment, and $77.8 of goodwill and intangible assets. The sale of the ~~basis of historical experience, specific allowances for known troubled accounts,~~Infant and ~~other currently available information.~~

~~Note 3 - Business Combinations and Divestitures~~

~~On May 9, 2019, the Company announced that it entered into a definitive agreement under which the Company will combine with Harry’s, Inc. (“Harry’s”)~~Pet Care business resulted in a ~~cash and stock transaction that values Harry’s at $1,370 (the “Merger”). Under~~gain of $4.1, net of expenses incurred to facilitate the ~~terms of the agreement and based on the Company’s~~ closing ~~share price on May 8, 2019, approximately 79% of the total value~~ of the transaction ~~will be paid~~and in ~~cash and 21% will be paid in shares~~support of the Company’s common stock. The Merger has been approved by the respective Board of Directors of the Company and Harry’s and is expected to close in the first quarter of the 2020 calendar year, subject to the satisfaction of customary closing conditions and receipt of regulatory clearances. The Company intends to finance the Merger through new debt and equity. The Merger of the Company and Harry’s brings together complementary capabilities to create a next-generation consumer products platform with an expansive runway for accelerated topline growth and enhanced value creation. The Company incurred costs associated with the acquisition of Harry’s totaling $1.8 for the three and nine months ended June 30, 2019, which were included in SG&A on the Consolidated Statement of Earnings.transition services agreement.

~~Jack Black, L.L.C.~~

On March 1, 2018, the Company completed the acquisition of Jack Black, L.L.C. (“Jack Black”), a men’s luxury skincare products company based in the U.S., for $90.2, net of cash acquired. The acquisition creates opportunities to expand the Company’s personal care portfolio into a growing global category where it can leverage its international geographic footprint. The acquisition was financed through available operating cash.

The Company has recognized the assets and liabilities of Jack Black based on estimates of their acquisition date fair values. The determination of the fair values of the acquired assets and assumed liabilities, including goodwill and other intangible assets, requires significant judgment. The Company completed the final fair value determination during the fourth quarter of fiscal 2018.

The Company’s purchase price allocation for Jack Black included net assets of $93.9 and consisted of working capital and other net assets of $11.9 (including cash of $3.7), other intangible assets of $47.7 and goodwill of $34.3, representing the value of expansion into new markets. Goodwill is deductible for tax purposes. The intangible assets acquired consisted primarily of the Jack Black trade name, customer relationships and product formulations with a weighted average useful life of 17 years. All assets are included in the Company’s Sun and Skin Care segment.

The Company noted the revenues and net earnings of Jack Black from the beginning of the period through the acquisition date were not material relative to the total revenues and net earnings of the Company during fiscal 2018. Acquisition and integration costs related to Jack Black totaling $0.1 and $1.1 for the three and nine months ended June 30, 2019, respectively, were included in SG&A on the Consolidated Statement of Earnings. Acquisition and integration costs related to Jack Black totaling $0.5 and $3.1 for the three and nine months ending June 30, 2018, respectively, were included in SG&A in the Consolidated Statement of Earnings. Additionally, acquisition and integration costs of $1.8 were included in Cost of products sold for the three and nine months ended June 30, 2018.

~~Sale of Playtex Gloves Business~~

On October 3, 2017, the Company entered into an agreement to sell its Playtex gloves business to a household products company (the “Acquirer”) for $19.0 to allow the Company to better focus and utilize its resources on its other product lines. The agreement also provided the Acquirer with indefinite and exclusive worldwide rights to the Playtex trademark for gloves. The sale was completed on October 26, 2017. Total assets sold were approximately $3.7 resulting in a pre-tax gain on sale of $15.3 in fiscal 2018.

Note 43 - Restructuring Charges

In February 2018, the Company announced Project Fuel, an enterprise-wide transformational initiative that is designed to address all aspects of the Company’s business and cost structure, simplifying and transforming the organization, structure, and key processes that will ~~provide the necessary catalyst for further re-investment in the Company’s growth objectives while enabling~~enable the Company to achieve its desired future state operations.

Initial costs for Project Fuel incurred by the Company were related to efforts to fully define the scope and reach of the project. In addition, the Company has incurred global severance costs related to the reduction of overhead. The Company has incurred costs and realized savings for Project Fuel beginning in fiscal 2018 ~~and for~~through the ~~first nine months~~second quarter of fiscal ~~2019~~2020 and expects to incur additional costs and realize additional savings ~~during the remainder of fiscal 2019~~ through fiscal 2021.

The Company does not include Project Fuel restructuring costs in the results of its reportable segments. The estimated impact of allocating such charges to segment results for ~~fiscal~~the three and six months ended March 31, 2020 and 2019 would have been as follows:


	Three Months Ended March 31, 2020
	Wet Shave		Sun and Skin Care		Feminine Care		Corporate		Total
Project Fuel
Severance and related benefit costs	$	0.2	$	—	$	—	$	0.6	0.8
Asset impairment and accelerated depreciation	1.0		—		—		—		1.0
Consulting, project implementation and management, and other exit costs	3.0		0.2		0.2		7.2		10.6
Total Restructuring	$	4.2	$	0.2	$	0.2	$	7.8	$	12.4


	Six Months Ended March 31, 2020
	Wet Shave		Sun and Skin Care		Feminine Care		Corporate		Total
Project Fuel
Severance and related benefit costs	$	0.2	$	—	$	—	$	1.9	2.1
Asset impairment and accelerated depreciation	1.0		—		—		—		1.0
Consulting, project implementation and management, and other exit costs	5.8		0.2		0.2		11.1		17.3
Total Restructuring	$	7.0	$	0.2	$	0.2	$	13.0	$	20.4

Nine Months Ended June 30, 2019
Wet
Shave Sun and Skin Care Feminine Care All Other Corporate Total
Project Fuel
Severance and related benefit costs $ 12.2
$ 2.3
$ 1.2
$ 0.4
$ 5.8
21.9
Asset impairment and accelerated depreciation 1.0
—
—
—
0.5
1.5
Consulting, project implementation and management and, other exit costs 2.4
—
—
—
17.0
19.4
Total Restructuring $ 15.6
$ 2.3
$ 1.2
$ 0.4
$ 23.3
$ 42.8

Three Months Ended June 30, 2018
Wet
Shave Sun and Skin Care Feminine Care All Other Corporate Total
Project Fuel
Severance and related benefit costs $ 1.6
$ 0.2
$ 1.0
$ 0.1
$ —
2.9
Consulting, project implementation and management and, other exit costs 2.0
0.2
—
—
10.8
13.0
Total Restructuring $ 3.6
$ 0.4
$ 1.0
$ 0.1
$ 10.8
$ 15.9

Pre-tax Selling, General and Administrative expense (“SG&A&A”) of ~~$1.8~~$5.8 and ~~$5.1~~$7.7 for the three and ~~nine~~six months ended ~~June 30, 2019,~~March 31, 2020, respectively, and ~~$0.5~~$1.9 and $3.3 for the three and ~~nine~~six months ended ~~June 30, 2018,~~March 31, 2019, respectively, associated with certain information technology enablement expenses and compensation expenses related to Project Fuel were included in Consulting, project implementation and management, and other exit costs. Pre-tax Cost of products sold of $0.1 for the three and six months ended March 31, 2020, related to inventory write-offs associated with Project Fuel, were included in Asset impairment and accelerated depreciation.

The following table summarizes the ~~restructuring~~Restructuring activities and related accrual (excluding certain obsolescence charges related to the restructuring) for fiscal ~~2019:~~2020:


							Utilized
	October 1, 2019		Charge to Income		Other ⁽¹⁾		Cash		Non-Cash		March 31, 2020
Restructuring
Severance and related benefit costs	$	8.2	$	2.1	$	(0.1)	$	(6.1)	$	—	$	4.1
Asset impairment and accelerated depreciation	—		1.0		—		—		(1.0)		—
Consulting, project implementation and management, and other exit costs	1.3		17.3		—		(17.6)		—		1.0
Total Restructuring	$	9.5	$	20.4	$	(0.1)	$	(23.7)	$	(1.0)	$	5.1

Utilized
October 1, 2018 Charge to
Income
Other ⁽¹⁾
Cash Non-Cash
June 30,
2019
Restructuring
Severance and related benefit costs $ 5.1
$ 21.9
$ —
$ (16.9 ) $ —
$ 10.1
Asset impairment and accelerated depreciation —
1.5
—
—
(1.5 ) —
Consulting, project implementation and management, and other exit costs 2.6
19.4
—
(21.4 ) —
0.6
Total Restructuring $ 7.7
$ 42.8
$ —
$ (38.3 ) $ (1.5 ) $ 10.7
(1)Includes the impact of currency translation.

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

~~Includes the impact of currency translation.~~

Note 54 - Income Taxes

For the three and ~~nine~~six months ended ~~June 30, 2019,~~March 31, 2020, the Company had an income tax ~~benefit~~expense of ~~$40.3~~$8.7 and ~~$16.8,~~$15.9, respectively, on ~~Loss~~Earnings before income taxes of ~~$481.7~~$28.2 and ~~$410.4,~~$57.8, respectively. The effective tax rate for the three and ~~nine~~six months ended ~~June 30, 2019~~March 31, 2020 was ~~8.4%~~30.6% and ~~4.1%~~27.4%, respectively. The difference between the federal statutory rate and the effective rate is primarily due to the impairment of goodwill and intangible assets, a portion of which are non-deductible, resulting in a lower tax benefit on a net loss. The nine month rate was also unfavorably impacted by a $4.7 net transitional charge resulting from the enactmentunfavorable impact of the ~~Tax Cuts~~sale of the Infant and ~~Jobs Act (the “Tax Act”) in the first quarter of fiscal 2019, as discussed below.~~Pet Care business.

For the three and ~~nine~~six months ended ~~June 30, 2018,~~March 31, 2019, the Company had income tax expense of ~~$9.3~~$15.5 and ~~$56.4,~~$23.5, respectively, on Earnings before income taxes of ~~$21.4~~$63.7 and ~~$140.3,~~$71.3, respectively. The effective tax rate for the three and ~~nine~~six months ended ~~June 30, 2018~~March 31, 2019 was ~~42.9%~~24.4% and ~~40.2%~~33.0%, respectively. The difference between the federal statutory rate and the effective rate ~~for the nine months ended June 30, 2018~~ is primarily due to a ~~$17.4~~$4.7 net transitional charge ~~resulting from the enactment of~~related to the Tax ~~Act, as discussed below,~~Cuts and Jobs Act. The rate was also unfavorably impacted by $33.9 of restructuring and other related costs in lower tax rate jurisdictions and unfavorable tax adjustments, including the impact of ~~the goodwill impairment.~~equity compensation.

On December 22, 2017, the U.S. government enacted the Tax Act. This new comprehensive tax legislation reduces the U.S. federal corporate tax rate from 35% to 21% but also limits and/or eliminates certain deductions while creating new taxes on certain foreign sourced earnings. Since the Company has a September 30 fiscal year end, the lower U.S. corporate income tax rate was phased in, resulting in a blended U.S. statutory federal rate of approximately 24.5% for the fiscal year ended September 30, 2018 and 21% for subsequent fiscal years. The reduction in the U.S. corporate tax rate required the Company to remeasure its U.S. deferred tax assets and liabilities to the lower federal rate of 21%. The Tax Act also imposed a one-time transition tax on historical earnings of certain foreign subsidiaries that were not previously taxed by the U.S.

For the nine months ended June 30, 2019, the discrete tax adjustment for the one-time transition tax on foreign earnings was $4.7 compared to $94.2 for the nine months ended June 30, 2018. The June 30, 2018 transition tax expense was offset by the estimated benefit of remeasurement of U.S. deferred tax assets and liabilities of $76.8, resulting in a net charge of $17.4 for the period, which was included as a component of income tax expense. The Company has tax loss carryforwards and tax credits, a portion of which are expected to be used to partially offset amounts payable over eight years related to the one-time transition tax on foreign earnings.

Subsequent to the Tax Act, the SEC issued rules under Staff Accounting Bulletin (“SAB”) 118 that allow for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. As of December 31, 2018, the Company has completed the accounting analysis for the Tax Act under SAB 118 based on current guidance, interpretations, and data available. We will continue to monitor and assess the impact of any new guidance and legislative changes.

Due to the Company’s fiscal year end, certain tax provisions of the new Tax Act impacted the Company in fiscal 2018 while others are effective for fiscal year 2019 and beyond. The significant provisions of the Tax Act which the Company is subject to beginning in fiscal 2019 include the full U.S. federal statutory rate reduction to 21%, the repeal of the domestic production activities deduction, tax on global intangible low-taxed income (“GILTI”), base erosion and anti-avoidance tax (“BEAT”), limitation of deductibility of certain executive compensation, limitation on business interest, and a deduction for foreign derived intangible income (“FDII”). The Company has recorded tax liabilities/(benefits) for the various provisions during the first nine months of fiscal 2019.

The Tax Act subjects a U.S. corporation to tax on its GILTI. U.S. GAAP allows companies to make an accounting policy election of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into the Company’s measurement of deferred taxes (the “deferred method”). The Company has made an accounting policy election to treat GILTI taxes as a current period expense.

The Company generally repatriates a portion of current year earnings from select non-US subsidiaries only if the economic cost of the repatriation is not considered material. The Company has historically considered the undistributed earnings of our foreign subsidiaries to be indefinitely reinvested and, accordingly, no taxes have been provided on such earnings. We continue to evaluate our plans for reinvestment or repatriation of unremitted foreign earnings and have not changed our previous indefinite reinvestment determination following the enactment of the Tax Act. If we determine that all or a portion of such foreign earnings are no longer indefinitely reinvested, the Company may be subject to additional foreign withholding taxes and U.S. federal and state income taxes beyond the Tax Act’s one-time transition tax.

Note 65 - Earnings per Share

Basic earnings per share is based on the weighted-average number of common shares outstanding during the period. Diluted earnings per share is based on the number of shares used for the basic earnings per share calculation, adjusted for the dilutive effect of share options and restricted share equivalent (“RSE”) awards.

The following is the reconciliation between the number of weighted-average shares used in the basic and diluted earnings per share calculation:

Three Months Ended
June 30,

Nine Months Ended
June 30,
2019 2018 2019 2018
Basic weighted-average shares outstanding 54.1
54.0
54.1
54.5
Effect of dilutive securities:
RSE awards —
0.1
—
0.1
Total dilutive securities —
0.1
—
0.1
Diluted weighted-average shares outstanding 54.1
54.1
54.1
54.6

For the three and ~~nine~~six months ended ~~June 30,~~March 31, 2020, the calculation of diluted weighted-average shares outstanding excludes 0.7 of share options and 0.1 of RSE awards because the effect of including these awards was anti-dilutive. For the three and six months ended March 31, 2019, the calculation of diluted weighted-average shares outstanding excludes 0.5 of share options and 0.1 of RSE awards because the effect of including these awards was anti-dilutive. For the three and nine months ended June 30, 2019, the calculation of diluted weighted-average shares outstanding excludes 0.2 of RSE awards that would have otherwise been dilutive, because the Company reported a net loss. For the three and nine months ended June 30, 2018, the calculation of diluted weighted-average shares outstanding excludes 0.5 of share options because the effect of including these awards was anti-dilutive. For the three and nine months ended June 30, 2018, the calculation of diluted weighted-average shares outstanding excludes 0.1 of RSE awards because the effect of these awards was anti-dilutive.

Note 76 - Goodwill and Intangible Assets

The following table sets forth goodwill by segment:


	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 six-month period ended March 31, 2020
Infant and Pet Care divestiture	—		—		—		(8.2)		(8.2)
Cumulative translation adjustment	1.2		0.2		(2.4)		—		(1.0)

Gross balance at March 31, 2020	$	961.5	$	228.5	$	204.6	$	61.4	$	1,456.0
Accumulated goodwill impairment	(369.0)		(2.0)		—		(61.4)		(432.4)
Net balance at March 31, 2020	$	592.5	$	226.5	$	204.6	$	—	$	1,023.6	��

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 nine month period ended June 30, 2019
Impairment charges $ (358.0 ) $ —
$ —
$ (29.0 ) $ (387.0 )
Cumulative translation adjustment (2.5 ) (0.5 ) (0.6 ) —
(3.6 )

Gross balance at June 30, 2019 $ 965.7
$ 228.9
$ 207.4
$ 69.6
$ 1,471.6
Accumulated goodwill impairment (358.0 ) —
—
(53.4 ) (411.4 )
Net balance at June 30, 2019 $ 607.7
$ 228.9
$ 207.4
$ 16.2
$ 1,060.2

June 30, 2019 September 30, 2018
Gross
Carrying
Amount Accumulated
Amortization Net Gross
Carrying
Amount Accumulated
Amortization Net
Trade names and brands $ 206.6
$ 32.8
$ 173.8
$ 206.7
$ 25.4
$ 181.3
Technology and patents 78.8
76.4
2.4
79.0
75.9
3.1
Customer related and other 178.6
101.3
77.3
179.3
96.2
83.1
Total amortizable intangible assets $ 464.0
$ 210.5
$ 253.5
$ 465.0
$ 197.5
$ 267.5


	March 31, 2020										September 30, 2019
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Trade names and brands	$	206.5	$	40.0	$	166.5	$	206.4	$	35.0	$	171.4
Technology and patents	76.1		74.6		1.5		78.5		76.4		2.1
Customer related and other	175.3		103.7		71.6		176.0		100.9		75.1
Total amortizable intangible assets	$	457.9	$	218.3	$	239.6	$	460.9	$	212.3	$	248.6

Amortization expense was ~~$4.4~~$4.2 and ~~$13.4~~$8.5 for the three and ~~nine~~six months ended ~~June 30, 2019,~~March 31, 2020, respectively, and ~~$4.6~~$4.5 and ~~$13.2~~$9.0 for the three and ~~nine~~six months ended ~~June 30, 2018,~~March 31, 2019, respectively. Estimated amortization expense for amortizable intangible assets for the remainder of fiscal ~~2019~~2020 and for fiscal ~~2020,~~ 2021, 2022, 2023, 2024, and ~~2024~~2025 is ~~$4.3, $17.1, $16.5,~~$8.4, $16.3, ~~$16.3,~~$16.2, $16.2, $16.1, and ~~$16.2,~~$16.1, respectively, and ~~$166.8~~$150.3 thereafter.

The Company had indefinite-lived intangible assets of ~~$667.9~~$596.6 ($~~180.8~~178.7 in Wet Shave, ~~$388.4~~$388.0 in Sun and Skin Care, $29.9 in Feminine Care, and $0.0 in All Other) at March 31, 2020, a decrease of $67.7 from September 30, 2019, which was primarily the result of the sale of the Diaper Genie indefinite lived intangible asset, offset by foreign currency fluctuations. The Company had indefinite-lived trade names and brands of $664.3 ($177.7 in Wet Shave, $387.9 in Sun and Skin Care, $29.9 in Feminine Care, and $68.8 in All Other) at ~~June~~September 30, 2019.

Goodwill and intangible assets deemed to have an indefinite life are not amortized but are instead reviewed annually for impairment of value or when indicators of a potential impairment are present. The Company’s annual impairment testing date is July 1. The Company continuously monitors events which could trigger an interim impairment analysis, such as changing business conditions and environmental factors, which included the impact of the COVID-19 pandemic for the quarter ended March 31, 2020. The Company determined there was no triggering event requiring an interim impairment analysis in the quarter ended March 31, 2020. However, the duration and severity of COVID-19 could result in future impairment charges as a prolonged pandemic could impact the results of the Company’s operations and changes to the assumptions utilized in the determination of the estimated fair value of the Company’s goodwill and indefinite-lived intangible assets including long term growth rates and discount rates. This could be significant enough that an interim impairment analysis may indicate that carrying amounts of goodwill and other intangible assets require adjustment or that remaining useful lives should be revised. Refer to the sensitivity analysis in Management's Discussion and Analysis in the Company’s Annual Report on Form 10-K filed with the SEC on November 26, 2019.

During fiscal 2019, the Company recorded impairment charges of $369.0, $2.0, and $37.0 on the goodwill of the Wet Shave, Skin Care, and Infant Care reporting units, respectively. The fair value of these reporting units was close to the carrying value at September 30, 2019 such that a ~~decrease~~significant decline in operations of ~~$163.6 from September 30, 2018, resulting from~~ the reporting unit could potentially result in additional impairment. Additionally, the Company recorded impairment charges of $87.0 and $75.0 during fiscal 2019 on the Wet Ones and Diaper Genie ~~trade names. The Company had indefinite-lived~~indefinite lived trade names, ~~and brands of $831.5 ($182.2 in Wet Shave, $475.6 in Sun and Skin Care, $29.9 in Feminine Care, and $143.8 in All Other) at September 30, 2018.~~respectively.

The Company performed an interim impairment analysis using financial information through June 30, 2019 and forecasts for cash flows developed using the Company's three-year strategic plan. The Company’s annual impairment test is performed on July 1. The interim impairment analysis was performed due to the decline in the price of the Company’s common stock in the third quarter of fiscal 2019. The analysis was completed in a manner consistent with the annual impairment test using both the market and income approaches and weighting them based on their application to the reporting units. The interim impairment review was performed across all reporting units and indefinite-lived intangible assets. The analysis indicated that the carrying amount of the goodwill for the Wet Shave and Infant Care reporting units was greater than its fair value. The impairment of the Wet Shave and Infant Care reporting units was calculated as the difference between the fair value, determined in the interim impairment review, and the carrying value. The results of the impairment analysis indicated that the goodwill of the Wet Shave and Infant Care reporting units was impaired $358.0 and $29.0, respectively, as of June 30, 2019. Additionally, the impairment analysis indicated that the indefinite-lived trade names for Wet Ones and Diaper Genie had carrying values that exceeded their fair values. As a result, the Wet Ones and Diaper Genie trade names were impaired $87.0 and $75.0, respectively as of June 30, 2019.

Additionally, the interim impairment analysis indicated the fair values of the Skin Care and Feminine Care reporting units were between 102% and 105% of their carrying values, respectively. Key assumptions used in valuing the reporting units include the weighted average cost of capital of 9.6% and 7.9% for Skin Care and Feminine Care, respectively. The long-term revenue growth rates applied to the valuation models were 2.00% for Skin Care and 0.50% for Feminine Care. Unfavorable fluctuations in the discount rates or declines in forecasted sales and margins could result in impairment of the reporting units and indefinite-lived trade names. The Company will continue to evaluate the fair value of goodwill and intangible assets through the fourth quarter of fiscal 2019 for potential impairment.

During fiscal 2018, the Company recorded impairment charges of $24.4 on the goodwill of the Infant Care reporting unit. The value of the Infant Care reporting unit decreased and required an impairment because of higher discount rates, lower forecasted revenue growth rates, and earnings margins, which resulted in lower projected long-term future cash flows when the interim impairment analysis was performed.

Note 87 - Supplemental Balance Sheet Information


	March 31, 2020		September 30, 2019
Inventories
Raw materials and supplies	$	55.3	$	55.1
Work in process	64.6		66.5
Finished products	220.2		235.6
Total inventories	$	340.1	$	357.2
Other Current Assets
Miscellaneous receivables	$	13.8	$	14.9
Inventory returns receivable	0.6		4.9
Prepaid expenses	67.9		65.0
Value added tax collectible from customers	20.1		23.0
Income taxes receivable	15.5		29.1
Other	12.6		3.1
Total other current assets	$	130.5	$	140.0
Property, Plant and Equipment
Land	$	18.8	$	18.7
Buildings	137.5		137.4
Machinery and equipment	986.0		992.3
Capitalized software costs	46.1		47.8
Construction in progress	34.1		40.9
Total gross property, plant and equipment	1,222.5		1,237.1
Accumulated depreciation and amortization	(850.5)		(841.1)
Total property, plant and equipment, net	$	372.0	$	396.0
Other Current Liabilities
Accrued advertising, sales promotion and allowances	$	42.3	$	51.9
Accrued trade allowances	24.9		26.2
Accrued salaries, vacations and incentive compensation	42.8		51.5
Income taxes payable	15.6		11.5
Returns reserve	32.6		60.4
Restructuring reserve	5.1		9.5
Value added tax payable	7.3		3.6
Deferred compensation	6.6		10.4
Short term lease obligation	10.8		—
Customer advance payments	1.9		1.7
Other	88.3		78.7
Total other current liabilities	$	278.2	$	305.4
Other Liabilities
Pensions and other retirement benefits	$	147.5	$	149.8
Deferred compensation	25.1		30.3
Long term lease obligation	38.4		—
Other non-current liabilities	81.0		78.8
Total other liabilities	$	292.0	$	258.9

June 30,
2019 September 30,
2018
Inventories
Raw materials and supplies $ 52.4
$ 52.0
Work in process 73.4
67.5
Finished products 246.9
210.0
Total inventories $ 372.7
$ 329.5
Other Current Assets
Miscellaneous receivables $ 20.0
$ 12.6
Prepaid expenses 74.6
68.4
Value added tax collectible from customers 25.4
25.2
Income taxes receivable 20.1
17.3
Other 2.2
5.3
Total other current assets $ 142.3
$ 128.8
Property, Plant and Equipment
Land $ 19.0
$ 19.2
Buildings 137.6
141.9
Machinery and equipment 1,004.0
964.8
Capitalized software costs 47.9
48.4
Construction in progress 27.4
59.9
Total gross property, plant and equipment 1,235.9
1,234.2
Accumulated depreciation and amortization (835.2 ) (810.1 )
Total property, plant and equipment, net $ 400.7
$ 424.1
Other Current Liabilities
Accrued advertising, sales promotion and allowances $ 64.9
$ 28.2
Accrued trade allowances 26.7
29.9
Accrued salaries, vacations and incentive compensation 50.9
44.2
Income taxes payable 18.9
20.3
Returns reserve 50.6
58.6
Restructuring reserve 10.7
7.7
Value added tax payable 8.2
4.0
Deferred compensation 6.9
6.3
Other 81.3
86.3
Total other current liabilities $ 319.1
$ 285.5
Other Liabilities
Pensions and other retirement benefits $ 87.7
$ 91.5
Deferred compensation 33.1
40.7
Other non-current liabilities 82.2
79.6
Total other liabilities $ 203.0
$ 211.8

The Company adopted ASU 2016-02 on October 1, 2019. The Company has elected to utilize the package of practical expedients permitted under the transition guidance which allows it to carryforward its historical lease classification, its assessment on whether a contract was or contains a lease, and its assessment of initial direct costs for any leases that existed prior to October 1, 2019. Additionally, the Company has elected as an accounting policy not to separate non-lease components from lease components and, instead, account for these components as a single lease component. The Company has made an accounting policy election not to recognize right of use (“ROU”) assets and lease liabilities for leases that, at the commencement date, are for 12 months or fewer. For leases that do not provide an implicit rate, the Company uses its secured incremental borrowing rate, based on the information available for leases, including the lease term and interest rate environment in the country in which the lease exists, to calculate the present value of the future lease payments.

A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment over a contracted period in exchange for payment. The Company evaluates if an arrangement is a lease at the inception date for the agreement. For operating leases entered into prior to October 1, 2019, the ROU assets and operating lease liabilities are recognized in the balance sheet based on the present value of the remaining future minimum payments over the lease term from the implementation date. Certain leases include an option to either renew or terminate the lease. For purposes of calculating lease liabilities, these options are included within the lease term when it has become reasonably certain that the Company will exercise such options. Leases entered into subsequent to the implementation date calculate the operating lease ROU asset and operating lease liabilities based on the present value of minimum payments over the lease term at the commencement date of the lease.

The Company leases certain offices and manufacturing facilities, warehouses, employee vehicles, and certain manufacturing related equipment. Leases with an initial term of 12 months or fewer are not recorded on the Condensed Consolidated Balance Sheet. All recorded leases are classified as operating leases and lease expense is recognized on a straight-line basis over the lease term.

A summary of the company's lease information is as follows:


		March 31, 2020
Assets	Classification
Right of use assets	Other assets	$	48.8

Liabilities
Current lease liabilities	Other current liabilities	$	10.8
Long-term lease liabilities	Other liabilities	38.4
Total lease liabilities		$	49.2

Other information
Weighted-average remaining lease term (years)		11
Weighted-average incremental borrowing rate		6.8		%


	Three Months Ended March 31, 2020		Six Months Ended March 31, 2020
Statement of Income
Lease cost ⁽¹⁾	$	3.4	$	7.1

Other information
Leased assets obtained in exchange for new lease liabilities	$	0.5	$	0.6
Cash paid for amounts included in the measurement of lease liabilities	$	3.2	$	7.0

(1)Lease expense is included in cost of products sold or SG&A expenses based on the nature of the lease. Short-term lease expense is excluded from this amount and is not material.

The Company's future lease payments including reasonable assured renewal options under lease agreements are as follows:


	Operating Leases
Remainder of fiscal 2020	$	7.1
2021	11.1
2022	8.3
2023	6.9
2024	5.5
2025 and thereafter	40.4
Total future minimum lease commitments	79.3
Less: Imputed Interest	(30.1)
Present value of lease liabilities	$	49.2


	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

Note 9 - Accounts Receivable Facility

On September 15, 2017, the Company entered into a $150 uncommitted master accounts receivable purchase agreement with The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as the purchaser (the “Accounts Receivable Facility”). Transfers under the Accounts Receivable ~~Facility. Transfers under this agreement~~Facility are accounted for as sales of receivables, resulting in the receivables being de-recognized from the Consolidated Balance Sheet. The purchaser assumes the credit risk at the time of sale and has the right at any time to assign, transfer, or participate any of its rights under the purchased receivables to another bank or financial institution. The purchase and sale of receivables under the ~~agreement~~Accounts Receivable Facility is intended to be an absolute and irrevocable transfer without recourse by the purchaser to the Company for the creditworthiness of any obligor. The Company continues to have collection and servicing responsibilities for the receivables sold and receives separate compensation for their servicing. The compensation received is considered acceptable servicing compensation and, as such, the Company does not recognize a servicing asset or liability.

As of ~~June 30, 2019,~~March 31, 2020, the discount rate used to determine the purchase price for the subject receivables is based upon LIBOR plus a margin applicable to the specified obligor.

Accounts receivables sold ~~under this agreement~~ were ~~$308.2~~$219.5 and ~~$754.2~~$401.2 for the three and ~~nine~~six months ended ~~June 30, 2019,~~March 31, 2020, respectively, and ~~$328.5~~$232.1 and ~~$820.1~~$446.0 for the three and ~~nine~~six months ended ~~June 30, 2018,~~March 31, 2019, respectively. The trade receivables sold that remained outstanding ~~under this agreement~~ as of ~~June 30, 2019~~March 31, 2020 and September 30, ~~2018~~2019 were ~~$119.2~~$114.5 and ~~$77.9,~~$74.9, respectively. The net proceeds received were included in cash provided by operating activities and cash provided by investing activities on the Consolidated Statement of Cash Flows. The difference between the carrying amount of the trade receivables sold and the sum of the cash received is recorded as a loss on sale of receivables in Other (income) expense, net in the Consolidated Statement of Earnings. The loss on sale of trade receivables was ~~$0.9~~$0.4 and ~~$2.2~~$0.9 for the three and ~~nine~~six months ended ~~June 30, 2019,~~March 31, 2020, respectively, and the loss on sale of trade receivables was ~~$0.8~~$0.7 and ~~$1.8~~$1.3 for the three and ~~nine~~six months ended ~~June 30, 2018,~~March 31, 2019, respectively.

The detail of long-term debt was as follows:


	March 31, 2020		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)}	1.7		2.2
Total long-term debt	$	1,098.3	$	1,097.8

June 30,
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 125.0
7.0
Term loan, due 2019 —
185.0
Total long-term debt, including current maturities 1,225.0
1,292.0
Less current portion 125.0
184.9
Less unamortized debt issuance costs and discount ^{(1) (2)}
2.5
3.3
Total long-term debt $ 1,097.5
$ 1,103.8

~~On February 6,~~ 2019, the ~~Company made a $185.0 prepayment to retire its term loan~~balance for the senior notes due ~~April~~2021 and the senior notes due 2022 are reflected net of debt issuance costs of $0.8 and $1.0, respectively.

(2)At March 31, 2020 and September 30, 2019, ~~(the “Term Loan”). The Company funded~~ the ~~payment through additional borrowing on its U.S. revolving credit facility~~balance for the senior notes due ~~June 2020 (“Revolving Credit Facility”).~~ 2022 was reflected net of discount of $0.3 and $0.4, respectively.

The Company had outstanding variable-rate international borrowings, recorded in Notes payable, of ~~$12.6~~$17.7 and ~~$8.2~~$14.4 as of March 31, 2020 and September 30, 2019, respectively.

Replacement of Credit Agreement

On April 3, 2020 (the “Closing Date”), the Company closed its new senior secured revolving credit facility in an aggregate principal amount of $425 (the “Revolving Credit Facility”) dated March 28, 2020, by and among, the Company and certain subsidiaries of the Company, and Bank of America, N.A. as administrative agent and collateral agent ("BofA"), MUFG Bank, Ltd., as syndication agent (“MUFG”), TD Securities (USA) LLC, as joint lead arranger (“TD”), and the several lenders from time to time party thereto (together with BofA, MUFG, and TD, the "Lenders") (the "Credit Agreement").

Interest on any borrowings under the Revolving Credit Facility must be paid monthly, bi-monthly or quarterly depending on the interest rate. Any outstanding amounts under the Revolving Credit Facility must be repaid on or before April 3, 2025. Under the Credit Agreement, certain of the Company’s subsidiaries guarantee the Company’s payment and performance obligations. The Revolver will include a letter of credit subfacility of up to $70 and will provide the Company with the ability to incur certain amounts of additional incremental loans in the future, subject to the satisfaction of certain conditions.

The Revolving Credit Facility, expandable under an accordion feature, will provide for a five-year revolving line of credit and will bear interest at a range of 1.50% - 2.25% over LIBOR, depending on the net debt leverage level of the Company.

Effective as of April 3, 2020, and in connection with the Credit Agreement, the Company terminated that certain senior unsecured revolving credit agreement dated as of June 1, 2015, as amended, supplemented or modified from time to time among the Company, as borrower, JPMorgan Chase Bank, N.A., as administrative agent, and the other parties thereto, and the related Subsidiary Guaranty Agreement dated as of June 30, ~~2019 and September 30, 2018, respectively.~~

~~As of June 30, 2019, the~~2015 (“Prior Revolving Credit Facility”). The Company ~~had~~did not have any outstanding borrowings ~~of $125.0 on~~at the ~~Revolving Credit Facility classified as a current liability. The Company expects to refinance the Revolving Credit Facility prior to its maturity date.~~termination date and no early termination penalties were incurred.

Note 11 - Retirement Plans

The Company has several defined benefit pension plans covering employees in the U.S. and certain employees in other countries, which are included in the information presented below. The plans provide retirement benefits based on years of service and earnings. The Company also sponsors or participates in several other non-U.S. pension and ~~post-retirement~~postretirement arrangements, including various retirement and termination benefit plans, some of which are required by local law or coordinated with government-sponsored plans, which are not significant in the aggregate and, therefore, are not included in the information presented below.

The Company’s net periodic pension and postretirement ~~cost (benefit)~~costs for these plans ~~was~~for the three and six months ended March 31 were as follows:

Three Months Ended
June 30,

Nine Months Ended
June 30,
2019 2018 2019 2018
Service cost $ 0.7
$ 0.7
$ 2.2
$ 2.2
Interest cost 4.7
4.3
14.1
12.9
Expected return on plan assets (6.4 ) (7.1 ) (19.0 ) (21.4 )
Recognized net actuarial loss 1.1
1.1
3.1
3.4
Net periodic cost (benefit) $ 0.1
$ (1.0 ) $ 0.4
$ (2.9 )


	Three Months Ended March 31,						Six Months Ended March 31,
	2020		2019		2020		2019
Service cost	$	1.0	$	0.8	$	2.1	$	1.5
Interest cost	3.5		4.7		6.9		9.4
Expected return on plan assets	(5.7)		(6.3)		(11.5)		(12.6)
Recognized net actuarial loss	2.3		1.0		4.6		2.0
Settlement loss recognized	0.2		—		0.4		—
Net periodic cost	$	1.3	$	0.2	$	2.5	$	0.3

The service cost component of the net periodic cost ~~(benefit)~~ associated with the Company’s retirement plans is recorded to Cost of products sold and SG&A on the Condensed Consolidated Statement of Earnings. The remaining net periodic cost ~~(benefit)~~ is recorded to Other (income) expense, net on the Condensed Consolidated Statement of Earnings.

Note 12 ~~- Shareholders’ Equity~~

In January 2018, the Board approved an authorization to repurchase up to 10.0 shares of the Company’s common stock, replacing the previous stock repurchase authorization from May 2015. The Company did not repurchase any shares under this authorization during the nine months ended June 30, 2019. The Company has 10.0 shares of its common stock available for repurchase in the future under the Board’s authorization. Any future share repurchases may be made in the open market, privately negotiated transactions, or otherwise, in such amounts and at such times as the Company deems appropriate based upon prevailing market conditions, business needs, and other factors.

~~The Company has not declared any dividends since the third quarter of fiscal 2015 and does not currently intend to declare dividends in the foreseeable future.~~

~~Note 13~~ - Accumulated Other Comprehensive (Loss) Income

The following table presents the changes in accumulated other comprehensive (loss) income (“AOCI”), net of tax, by component:


	Foreign Currency Translation Adjustments		Pension and Post-retirement Activity		Hedging Activity		Total
Balance at October 1, 2019	$	(77.3)	$	(159.8)	$	1.2	$	(235.9)
OCI before reclassifications ⁽¹⁾	(6.4)		(4.3)		1.4		(9.3)
Reclassifications to earnings	—		3.6		(1.1)		2.5
Balance at March 31, 2020	$	(83.7)	$	(160.5)	$	1.5	$	(242.7)

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⁾
(9.4 ) (2.5 ) 0.1
(11.8 )
Reclassifications to earnings —
2.3
(3.1 ) (0.8 )
Balance at June 30, 2019 $ (50.0 ) $ (110.5 ) $ (0.4 ) $ (160.9 )


	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⁾	(22.0)		(1.2)		1.1		(22.1)
Reclassifications to earnings	—		1.5		(2.1)		(0.6)
Balance at March 31, 2019	$	(62.6)	$	(110.0)	$	1.6	$	(171.0)

(1)OCI is defined as other comprehensive income (loss).

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⁾
(10.4 ) 0.2
1.2
(9.0 )
Reclassifications to earnings —
2.4
1.7
4.1
Balance at June 30, 2018 $ (39.4 ) $ (98.7 ) $ 1.8
$ (136.3 )


~~(1)~~	~~OCI is defined as other comprehensive income (loss).~~

The following table presents the reclassifications out of AOCI:


	Three Months Ended March 31,						Six Months Ended March 31,			Affected Line Item in the Condensed Consolidated Statements of Earnings
Details of AOCI Components	2020		2019		2020		2019
Gain / (Loss) on cash flow hedges
Foreign exchange contracts	$	0.7	$	1.3	$	1.6	$	3.1	Other (income) expense, net
	0.7		1.3		1.6		3.1		Total before tax
	0.2		0.4		0.5		1.0		Income tax provision
	0.5		0.9		1.1		2.1		Net of tax
Amortization of defined benefit pension and postretirement items
Actuarial losses	$	(2.3)	$	(1.0)	$	(4.6)	$	(2.0)	(1)
Settlements	(0.2)		—		(0.4)		—
	(2.5)		(1.0)		(5.0)		(2.0)		Total before tax
	(0.7)		(0.2)		(1.4)		(0.5)		Income tax provision
	(1.8)		(0.8)		(3.6)		(1.5)		Net of tax

Total reclassifications for the period	$	(1.3)	$	0.1	$	(2.5)	$	0.6	Net of tax

For the Three Months Ended
June 30,
For the Nine Months Ended
June 30,
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 $ 1.4
$ (1.0 ) $ 4.5
$ (2.5 ) Other expense, net
1.4
(1.0 ) 4.5
(2.5 ) Total before tax
0.4
(0.4 ) 1.4
(0.8 ) Income tax (benefit) provision
1.0
(0.6 ) 3.1
(1.7 ) Net of tax
Amortization of defined benefit pension and postretirement items
Actuarial losses $ (1.1 ) $ (1.1 ) $ (3.1 ) (3.4 ) (1)
(1.1 ) (1.1 ) (3.1 ) (3.4 ) Total before tax
(0.3 ) (0.3 ) (0.8 ) (1.0 ) Income tax (benefit) provision
(0.8 ) (0.8 ) (2.3 ) $ (2.4 ) Net of tax

Total reclassifications for the period $ 0.2
$ (1.4 ) $ 0.8
$ (4.1 ) Net of tax
(1)These AOCI components are included in the computation of net periodic cost (benefit). See Note 11 of Notes to Condensed Consolidated Financial Statements.

Note 1413 - Financial Instruments and Risk Management

~~At times,~~In the course of business, the Company enters into contractual arrangements (also referred to as derivatives), to reduce its exposure to foreign currency. The Company has master netting agreements with all of its counterparties that allow for the settlement of contracts in an asset position with contracts in a liability position in the event of default. The Company manages counterparty risk through the utilization of investment grade commercial banks, diversification of counterparties, and its counterparty netting arrangements. The section below outlines the types of derivatives that existed at ~~June 30, 2019~~March 31, 2020 and September 30, ~~2018,~~2019, as well as the Company’s objectives and strategies for holding derivative instruments.

Foreign Currency Risk

A significant share of the Company’s sales is tied to currencies other than the U.S. dollar, the Company’s reporting currency. As such, a weakening of currencies relative to the U.S. dollar can have a negative impact on reported earnings. Conversely, strengthening of currencies relative to the U.S. dollar can improve reported results. The primary currencies to which the Company is exposed include the euro, the Japanese yen, the British pound, the Canadian dollar, and the Australian dollar.

Additionally, the Company’s foreign subsidiaries enter into internal and external transactions that create non-functional currency balance sheet positions at the foreign subsidiary level. These exposures are generally the result of intercompany purchases, intercompany loans and, to a lesser extent, external purchases and are revalued in the foreign subsidiary’s local currency at the end of each period. Changes in the value of the non-functional currency balance sheet positions in relation to the foreign subsidiary’s local currency results in an exchange gain or loss recorded in Other expense (income), net. The primary currency to which the Company’s foreign subsidiaries are exposed is the U.S. dollar.

At ~~June 30, 2019,~~March 31, 2020, the Company maintained a cash flow hedging program related to foreign currency risk. These derivative instruments ~~had~~have a high correlation to the underlying exposure being hedged and ~~were~~have been deemed highly effective by the Company for accounting purposes in offsetting the associated risk.

The Company entered into a series of forward currency contracts to hedge cash flow uncertainty associated with currency fluctuations. These transactions are accounted for as cash flow hedges. The Company had an unrealized pre-tax ~~loss~~gains of ~~$0.5~~$2.1 and ~~a gain of $3.9~~$1.7 at ~~June 30, 2019~~March 31, 2020 and September 30, ~~2018,~~2019, respectively, on these forward currency contracts, which are accounted for as cash flow hedges and included in AOCI. Assuming foreign exchange rates versus the U.S. dollar remain at ~~June 30, 2019~~March 31, 2020 levels over the next 12 months, ~~the majority~~most of the pre-tax gain included in AOCI at ~~June 30, 2019~~March 31, 2020 is expected to be included in Other (income) expense, net. Contract maturities for these hedges extend into fiscal 2020. At ~~June 30, 2019,~~March 31, 2020, there were 6164 open foreign currency contracts with a total notional value of ~~$126.9.~~$131.4.

Derivatives not Designated as Hedges

The Company entered into foreign currency derivative contracts which are not designated as cash flow hedges for accounting purposes to hedge balance sheet exposures. Any gains or losses on these contracts are expected to be offset by exchange gains or losses on the underlying exposures and thus are not subject to significant market risk. The change in estimated fair value of the foreign currency contracts for the three and ~~nine~~six months ended ~~June 30, 2019~~March 31, 2020 resulted in losses of ~~$1.1~~$0.8 and ~~$1.7,~~$0.5, respectively, compared to ~~gains~~a gain of ~~$3.0~~$0.7 and ~~$0.2~~a loss of $0.6, respectively, for the three and ~~nine~~six months ended ~~June 30, 2018,~~March 31, 2019, and was recorded in Other (income) expense, net in the Condensed Consolidated Statements of Earnings. At ~~June 30, 2019,~~March 31, 2020, there were ~~six~~5 open foreign currency derivative contracts not designated as cash flow hedges, with a total notional value of ~~$56.1.~~

The following table provides estimated fair values of derivative instruments:


	Fair Value of Asset (Liability) ⁽¹⁾
	March 31, 2020		September 30, 2019
Derivatives designated as cash flow hedging relationships:
Foreign currency contracts	$	2.1	$	1.7
Derivatives not designated as cash flow hedging relationships:
Foreign currency contracts	$	(0.5)	$	0.4

Fair Value of Asset (Liability) ⁽¹⁾
June 30, 2019
September 30,
2018
Derivatives designated as cash flow hedging relationships:
Foreign currency contracts $ (0.5 ) $ 3.9
Derivatives not designated as cash flow hedging relationships:
Foreign currency contracts $ (0.9 ) $ 1.3
(1)All derivative assets are presented in Other current assets or Other assets. All derivative liabilities are presented in Other current liabilities or Other liabilities.

The following table provides the amounts of gains and losses on derivative instruments:


	Three Months Ended March 31,						Six Months Ended March 31,
	2020		2019		2020		2019
Derivatives designated as cash flow hedging relationships:
Foreign currency contracts
Loss recognized in OCI ⁽¹⁾	$	2.9	$	1.8	$	2.0	$	1.6
Gain reclassified from AOCI into income ^{(1) (2)}	0.7		1.3		$	1.6	$	3.1
Derivatives not designated as cash flow hedging relationships:
Foreign currency contracts
Gain (loss) recognized in income ⁽²⁾	$	(0.8)	$	0.7	$	(0.5)	$	(0.6)

Three Months Ended
June 30,

Nine Months Ended
June 30,
2019 2018 2019 2018
Derivatives designated as cash flow hedging relationships:
Foreign currency contracts
Gain (loss) recognized in OCI ⁽¹⁾
$ (1.5 ) $ 5.4
$ 0.1
$ 1.7
Gain (loss) reclassified from AOCI into income (effective portion) ^{(1) (2)}
1.4
(1.0 ) $ 4.5
$ (2.5 )
Derivatives not designated as cash flow hedging relationships:
Foreign currency contracts
Gain (loss) recognized in income ⁽²⁾
$ (1.1 ) $ 3.0
$ (1.7 ) $ 0.2
(1)Each of these derivative instruments had a high correlation to the underlying exposure being hedged for the periods indicated and had been deemed highly effective by the Company in offsetting associated risk.

(2)Gain (loss) was recorded in Other expense (income), net.


~~(1)~~	~~Each of these derivative instruments had a high correlation to the underlying exposure being hedged for the periods indicated and were deemed highly effective in offsetting associated risk.~~


~~(2)~~	~~Gain (loss) was recorded in Other expense, net.~~

The following table provides financial assets and liabilities for balance sheet offsetting:


	At March 31, 2020						At September 30, 2019
	Assets ⁽¹⁾		Liabilities ⁽²⁾		Assets ⁽¹⁾		Liabilities ⁽²⁾
Foreign currency contracts
Gross amounts of recognized assets (liabilities)	$	2.6	$	(1.2)	$	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	$	2.6	$	(1.0)	$	2.4	$	(0.3)

(1)

At June 30, 2019 At September 30, 2018

Assets ⁽¹⁾

Liabilities ⁽²⁾

Assets ⁽¹⁾

Liabilities ⁽²⁾
Foreign currency contracts
Gross amounts of recognized assets (liabilities) $ 0.7
$ (2.3 ) $ 5.3
$ —
Gross amounts offset in the balance sheet —
0.2
(0.1 ) —
Net amounts of assets (liabilities) presented in the balance sheet $ 0.7
$ (2.1 ) $ 5.2
$ —

All derivative assets are presented in Other current assets or Other assets.


~~(1)~~	~~All derivative assets are presented in Other current assets or Other assets.~~


~~(2)~~	~~All derivative liabilities are presented in Other current liabilities or Other liabilities.~~

(2)All derivative liabilities are presented in Other current liabilities or Other liabilities.

Fair Value Hierarchy

Accounting guidance on fair value measurements for certain financial assets and liabilities requires that assets and liabilities carried at fair value be classified in one of the following three categories:

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.

Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions or external inputs from inactive markets.

~~Under the fair value accounting guidance hierarchy, an entity is required to maximize the use of quoted market prices and minimize the use of unobservable inputs.~~ The following table sets forth the Company’s financial assets and liabilities, which are carried at fair value and measured on a recurring basis during the period, all of which are classified as Level 2 within the fair value hierarchy:

June 30,
2019 September 30,
2018
Liabilities at estimated fair value:
Deferred compensation $ (39.8 ) $ (46.9 )
Derivatives - foreign currency contracts (1.4 ) 5.2
Net liabilities at estimated fair value $ (41.2 ) $ (41.7 )


	March 31, 2020		September 30, 2019
Liabilities at estimated fair value:
Deferred compensation	$	(31.3)	$	(40.6)
Derivatives - foreign currency contracts	1.6		2.1
Net liabilities at estimated fair value	$	(29.7)	$	(38.5)

The estimated fair value of the deferred compensation liability is determined based upon the quoted market prices of the investment options that are offered under the plan. At ~~June 30, 2019,~~March 31, 2020, the estimated fair value of foreign currency contracts is the amount that the Company would receive or pay to terminate the contracts, considering first the quoted market prices of comparable agreements or, in the absence of quoted market prices, factors such as interest rates, currency exchange rates, and remaining maturities. ~~The estimated fair value of the deferred compensation liability is determined based upon the quoted market prices of the investment options that are offered under the plan.~~

At ~~June 30, 2019~~March 31, 2020 and September 30, ~~2018,~~2019, the Company had no Level 1 or Level 3 financial assets or liabilities, other than pension plan assets.

At ~~June 30, 2019~~March 31, 2020 and September 30, ~~2018,~~2019, the fair market value of fixed rate long-term debt was ~~$1,066.7~~$1,045.1 and ~~$1,061.2,~~$1,071.2, respectively, compared to its carrying value of $1,100.0. The estimated fair value of the long-term debt was estimated using yields obtained from independent pricing sources for similar types of borrowing arrangements. There was no variable rate debt excluding revolving credit facilities as of June 30, 2019. The estimated fair value of variable-rate debt, which consists of bank debt and excludes revolving credit facilities, was $185.0 at September 30, 2018 compared to its carrying value of $184.9 at September 30, 2018. The estimated fair value was equal to the face value of the debt. The estimated fair value of long-term debt, excluding revolving credit facilities, have been determined based on Level 2 inputs.

Due to the nature of cash and cash equivalents and short-term borrowings, including notes payable, carrying amounts on the balance sheets approximate fair value. Additionally, the carrying amounts of the Company’s revolving credit facilities, which are classified as long-term debt on the balance sheet, approximate fair value due to the revolving nature of the balances. The estimated fair value of cash and cash equivalents, short-term borrowings, and the revolving credit agreements have been determined based on Level 2 inputs.

Note 1514 - Segment Data

For an overview of the Company’s segments, refer to Note 1 to Notes to Condensed Consolidated Financial Statements.

Segment performance is evaluated based on segment profit, exclusive of general corporate expenses, share-based compensation costs, restructuring charges, and certain costs ~~associated with restructuring initiatives,~~deemed non-recurring in nature, including acquisition and integration planning costs, the gain on the ~~sale~~disposal of the ~~Playtex gloves~~Infant and Pet Care business, Feminine and Infant Care evaluation costs, legal settlement expenses, and the amortization of intangible assets. Financial items, such as interest income and expense, are managed on a global basis at the corporate level. The exclusion of such charges from segment results reflects management’s view on how it evaluates segment performance.

The Company completed the sale of its Infant and Pet Care business in December 2019. As a result, no additional Net Sales or Segment Profit will be reported for the All Other segment in subsequent periods. Net Sales and Operating Profit for the Company’s manicure kits were reclassified to Sun and Skin Care for both the current and prior year periods as these products were not part of the divestiture. The impact of recasting the prior period segment information was not material.

The Company’s operating model includes some shared business functions across the segments, including product warehousing and distribution, transaction processing functions and, in most cases, combined sales force and management teams. The Company applies a fully allocated cost basis in which shared business functions are allocated between the segments. ~~Such allocations~~As a result of the divestiture of the Infant and Pet Care business, some shared costs which were previously allocated to the All Other segment are ~~estimates~~now being allocated to the Wet Shave, Sun and ~~do not represent~~Skin Care and Feminine Care segments, with the ~~costs of such services if performed on a stand-alone basis.~~

largest impact to Wet Shave, as noted in the discussion in Item 2. Management’s Discussion and Analysis.

Segment net sales and profitability are presented below:


	Three Months Ended March 31,						Six Months Ended March 31,
	2020		2019		2020		2019
Net Sales
Wet Shave	$	280.5	$	294.4	$	557.5	$	582.1
Sun and Skin Care	157.5		146.0		232.6		213.4
Feminine Care	85.0		74.6		160.1		149.3
All Other	—		31.7		26.8		59.0
Total net sales	$	523.0	$	546.7	$	977.0	$	1,003.8

Segment Profit
Wet Shave	$	44.5	$	55.7	$	97.4	$	110.7
Sun and Skin Care	44.3		40.7		44.4		40.3
Feminine Care	18.3		13.7		31.4		21.2
All Other	—		5.8		3.1		6.8
Total segment profit	107.1		115.9		176.3		179.0
General corporate and other expenses	(10.9)		(16.7)		(24.2)		(30.4)
Restructuring and related costs ⁽¹⁾	(12.4)		(15.4)		(20.4)		(33.9)
Acquisition and integration planning costs ⁽²⁾	(25.5)		(0.5)		(31.7)		(1.0)
Gain on sale of Infant and Pet Care business	(1.1)		—		4.1		—
Feminine and Infant Care evaluation costs ⁽³⁾	—		(1.0)		(0.3)		(1.0)
Sun Care reformulation costs ⁽⁴⁾	—		(0.4)		—		(0.5)
Legal settlement expense ⁽⁵⁾	—		—		—		(0.9)
Amortization of intangibles	(4.2)		(4.5)		(8.5)		(9.0)
Interest and other expense, net	(24.8)		(13.7)		(37.5)		(31.0)
Total earnings before income taxes	$	28.2	$	63.7	$	57.8	$	71.3

Three Months Ended
June 30,

Nine Months Ended
June 30,
2019 2018 2019 2018
Net Sales
Wet Shave $ 327.7
$ 341.1
$ 909.8
$ 980.4
Sun and Skin Care 168.4
162.8
380.3
374.2
Feminine Care 80.9
84.1
230.2
247.0
All Other 32.2
32.6
92.7
95.4
Total net sales $ 609.2
$ 620.6
$ 1,613.0
$ 1,697.0

Segment Profit
Wet Shave $ 54.1
$ 55.0
$ 164.8
$ 177.6
Sun and Skin Care 42.2
33.9
82.1
76.3
Feminine Care 15.5
11.0
36.7
25.7
All Other 3.6
5.4
10.8
16.8
Total segment profit 115.4
105.3
294.4
296.4
General corporate and other expenses (13.1 ) (17.7 ) (43.5 ) (55.6 )
Impairment charges (549.0 ) (24.4 ) (549.0 ) (24.4 )
Restructuring and related costs ⁽¹⁾
(8.9 ) (15.9 ) (42.8 ) (19.6 )
Harry’s acquisition and integration costs ⁽²⁾
(1.8 ) —
(1.8 ) —
Feminine and Infant Care evaluation costs ⁽³⁾
(0.5 ) —
(1.5 ) —
Sun Care reformulation costs ⁽⁴⁾
(1.0 ) —
(1.5 ) —
Jack Black acquisition and integration costs ⁽⁵⁾
(0.1 ) (2.3 ) (1.1 ) (4.9 )
Investor settlement expense ⁽⁶⁾
—
—
(0.9 ) —
Sale of Playtex gloves —
(0.6 ) —
15.3
Amortization of intangibles (4.4 ) (4.6 ) (13.4 ) (13.2 )
Interest and other expense, net (18.3 ) (18.4 ) (49.3 ) (53.7 )
Total (loss) earnings before income taxes $ (481.7 ) $ 21.4
$ (410.4 ) $ 140.3
(1)Includes pre-tax SG&A of $5.8 and $7.7 for the three and six months ended March 31, 2020, respectively, and $1.9 and $3.3 for the three and six months ended March 31, 2019, respectively, associated with certain information technology enablement expenses and incentive and retention compensation expenses for Project Fuel. Additionally, includes pre-tax Cost of products sold of $0.1 for the three and six months ended March 31, 2020, related to inventory write-offs associated with Project Fuel.

(2)Includes pre-tax SG&A of $25.5 and $31.7 for the three and six months ended March 31, 2020, respectively, and $0.5 and $1.0 for the three and six months ended March 31, 2019, respectively, related to acquisition and integration planning costs.

(3)Includes pre-tax SG&A of $0.3 for the six months ended March 31, 2020, and $1.0 for the three and six months ended March 31, 2019.

~~(1)~~

Restructuring costs associated with Project Fuel, an enterprise-wide transformational initiative that is designed to address all aspects of our business and cost structure, simplifying and transforming the organization, structure and key processes that will enable us to achieve our desired future state operations. Includes pre-tax SG&A of $1.8 and $5.1 for the three and nine months ended June 30, 2019, respectively, and $0.5 for the three and nine months ended June 30, 2018 associated with certain information technology enablement expenses for Project Fuel.


~~(2)~~	~~Acquisition and integration costs related to Harry’s totaling $1.8 for the three and nine months ended June 30, 2019, were included in SG&A on the Consolidated Statement of Earnings.~~


~~(3)~~	~~Includes pre-tax SG&A of $0.5 and~~ ~~$1.5~~ ~~for the three and nine months ended June 30, 2019, respectively, associated with consulting costs for the Company to evaluate segments.~~


~~(4)~~	~~Includes pre-tax Cost of products sold of $1.0 and $1.5 for the three and nine months ended June 30, 2019, respectively, associated with supply chain changes on select Sun Care products.~~

~~(5)~~

Acquisition and integration costs related to Jack Black totaling $0.1 and $1.1 for the three and nine months ended June 30, 2019, respectively, were included in SG&A on the Consolidated Statement of Earnings. Acquisition and integration costs related to Jack Black totaling $0.5 and $3.1 for the three and nine months ending June 30, 2018, respectively, were included in SG&A in the Consolidated Statement of Earnings. Additionally, acquisition and integration costs of $1.8 were included in Cost of products sold for the three and nine months ended June 30, 2018.


~~(6)~~	~~Includes pre-tax SG&A of $0.9 for the nine months ended June 30, 2019, associated with a settlement with an investor.~~

(4)Includes pre-tax Cost of products sold of $0.4 and $0.5 for the three and six months ended March 31, 2019, respectively.

(5)Includes pre-tax SG&A of $0.9 for the six months ended March 31, 2019.

The following table presents the Company’s net sales by geographic area:


	Three Months Ended June 30,				Nine Months Ended June 30,					Three Months Ended March 31,						Six Months Ended March 31,
	2019		2018		2019		2018			2020		2019		2020		2019
Net Sales to Customers									Net Sales to Customers
United States	$	362.1	$	368.8	$	923.7	$	967.3	United States	$	302.3	$	310.4	$	553.4	$	561.7
International	247.1		251.8		689.3		729.7		International	220.7		236.3		423.6		442.1
Total net sales	$	609.2	$	620.6	$	1,613.0	$	1,697.0	Total net sales	$	523.0	$	546.7	$	977.0	$	1,003.8

Supplemental product information is presented below for net sales:

Three Months Ended
June 30, Nine Months Ended
June 30,
2019 2018 2019 2018
Razors and blades $ 291.3
$ 304.6
$ 807.2
$ 877.5
Sun care products 135.7
132.1
285.2
297.5
Tampons, pads, and liners 80.9
84.1
230.2
247.0
Shaving gels and creams 36.4
36.5
102.6
102.9
Skin care products 32.7
30.7
95.1
76.7
Infant care and other 32.2
32.6
92.7
95.4
Total net sales $ 609.2
$ 620.6
$ 1,613.0
$ 1,697.0


	Three Months Ended March 31,						Six Months Ended March 31,
	2020		2019		2020		2019
Razors and blades	$	246.1	$	260.6	$	490.4	$	515.9
Tampons, pads, and liners	85.0		74.6		160.1		149.3
Sun care products	115.1		116.3		152.3		149.5
Skin care products	42.4		29.7		80.3		63.9
Shaving gels and creams	34.4		33.8		67.1		66.2
Infant care and other	—		31.7		26.8		59.0
Total net sales	$	523.0	$	546.7	$	977.0	$	1,003.8

~~Note 16 - Guarantor and Non-Guarantor Financial Information~~

The Company's senior notes issued in May 2011 and May 2012 (collectively, the "Notes") are fully and unconditionally guaranteed on a joint and several basis by the Company's existing and future direct and indirect domestic subsidiaries that are guarantors of any of the Company's credit agreements or other indebtedness for borrowed money (the "Guarantors"). The Guarantors are 100% owned either directly or indirectly by the Company and jointly and severally guarantee the Company's obligations under the Notes and substantially all of the Company's other outstanding indebtedness. The Company's subsidiaries organized outside of the U.S. and certain domestic subsidiaries which are not guarantors of any of the Company's other indebtedness (collectively, the "Non-Guarantors"), do not guarantee the Notes. The subsidiary guarantee with respect to the Notes is subject to release upon sale of all of the capital stock of the Subsidiary Guarantor; if the guarantee under the Company's credit agreements and other indebtedness for borrowed money is released or discharged (other than due to payment under such guarantee); or when the requirements for legal defeasance are satisfied or the obligations are discharged in accordance with the indenture.

Set forth below are the condensed consolidating financial statements presenting the results of operations, financial position, and cash flows of Edgewell Personal Care Company (the “Parent Company” as defined in the Notes), the Guarantors on a combined basis, the Non-Guarantors on a combined basis, and eliminations necessary to arrive at the information for the Company, as reported on a consolidated basis. Eliminations represent adjustments to eliminate investments in subsidiaries and intercompany balances and transactions between or among the Parent Company, the Guarantors, and the Non-Guarantors.

~~EDGEWELL PERSONAL CARE COMPANY~~

~~CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME~~

~~Three Months Ended June 30, 2019~~

Parent Company Guarantors Non-Guarantors Eliminations Total
Net sales $ —
$ 420.9
$ 276.5
$ (88.2 ) $ 609.2
Cost of products sold —
237.0
168.2
(88.2 ) 317.0
Gross profit —
183.9
108.3
—
292.2

Selling, general and administrative expense —
58.1
36.7
—
94.8
Advertising and sales promotion expense —
58.3
33.5
—
91.8
Research and development expense —
12.9
—
—
12.9
Impairment charges —
437.3
111.7
—
549.0
Restructuring charges —
4.8
2.3
—
7.1
Interest expense associated with debt 13.3
2.1
0.2
—
15.6
Other expense, net —
0.6
2.1
—
2.7
Intercompany service fees —
(3.1 ) 3.1
—
—
Equity in earnings of subsidiaries 431.4
92.1
—
(523.5 ) —
Loss before income taxes (444.7 ) (479.2 ) (81.3 ) 523.5
(481.7 )
Income tax (benefit) provision (3.3 ) (47.8 ) 10.8
—
(40.3 )
Net loss $ (441.4 ) $ (431.4 ) $ (92.1 ) $ 523.5
$ (441.4 )

Statements of Comprehensive Income:
Net loss $ (441.4 ) $ (431.4 ) $ (92.1 ) $ 523.5
$ (441.4 )
Other comprehensive income, net of tax 10.1
10.1
10.6
(20.7 ) 10.1
Total comprehensive loss $ (431.3 ) $ (421.3 ) $ (81.5 ) $ 502.8
$ (431.3 )

~~EDGEWELL PERSONAL CARE COMPANY~~

~~CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME~~

~~Nine Months Ended June 30, 2019~~

Parent Company Guarantors Non-Guarantors Eliminations Total
Net sales $ —
$ 1,090.6
$ 774.9
$ (252.5 ) $ 1,613.0
Cost of products sold —
651.2
477.7
(252.5 ) 876.4
Gross profit —
439.4
297.2
—
736.6

Selling, general and administrative expense —
171.5
108.7
—
280.2
Advertising and sales promotion expense —
110.8
80.5
—
191.3
Research and development expense —
39.5
—
—
39.5
Impairment charges —
437.3
111.7
—
549.0
Restructuring charges —
24.5
13.2
—
37.7
Interest expense associated with debt 40.1
7.3
0.6
—
48.0
Other expense, net —
1.6
(0.3 ) —
1.3
Intercompany service fees —
(12.5 ) 12.5
—
—
Equity in earnings of subsidiaries 363.3
48.6
—
(411.9 ) —
Loss before income taxes (403.4 ) (389.2 ) (29.7 ) 411.9
(410.4 )
Income tax (benefit) provision (9.8 ) (25.9 ) 18.9
—
(16.8 )
Net loss $ (393.6 ) $ (363.3 ) $ (48.6 ) $ 411.9
$ (393.6 )

Statements of Comprehensive Income:
Net loss $ (393.6 ) $ (363.3 ) $ (48.6 ) $ 411.9
$ (393.6 )
Other comprehensive income, net of tax (12.6 ) (12.6 ) (11.2 ) 23.8
(12.6 )
Total comprehensive loss $ (406.2 ) $ (375.9 ) $ (59.8 ) $ 435.7
$ (406.2 )

~~EDGEWELL PERSONAL CARE COMPANY~~

~~CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME~~

~~Three Months Ended June 30, 2018~~

Parent Company Guarantors Non-Guarantors Eliminations Total
Net sales $ —
$ 425.1
$ 278.0
$ (82.5 ) $ 620.6
Cost of products sold —
237.5
163.9
(82.5 ) 318.9
Gross profit —
187.6
114.1
—
301.7

Selling, general and administrative expense —
61.6
39.7
—
101.3
Advertising and sales promotion expense —
70.0
35.3
—
105.3
Research and development expense —
14.9
—
—
14.9
Impairment charges —
24.4
—
—
24.4
Restructuring charges —
13.4
2.0
—
15.4
Gain on sale of Playtex gloves —
0.6
—
—
0.6
Interest expense associated with debt 13.4
2.8
0.3
—
16.5
Other (income) expense, net —
(0.2 ) 2.1
—
1.9
Intercompany service fees —
(3.5 ) 3.5
—
—
Equity in earnings of subsidiaries (21.9 ) (25.7 ) —
47.6
—
Earnings before income taxes 8.5
29.3
31.2
(47.6 ) 21.4
Income tax (benefit) provision (3.6 ) 7.4
5.5
—
9.3
Net earnings $ 12.1
$ 21.9
$ 25.7
$ (47.6 ) $ 12.1

Statements of Comprehensive Income:
Net earnings $ 12.1
$ 21.9
$ 25.7
$ (47.6 ) $ 12.1
Other comprehensive loss, net of tax (30.0 ) (30.0 ) (30.5 ) 60.5
(30.0 )
Total comprehensive income $ (17.9 ) $ (8.1 ) $ (4.8 ) $ 12.9
$ (17.9 )

~~EDGEWELL PERSONAL CARE COMPANY~~

~~CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME~~

~~Nine Months Ended June 30, 2018~~

Parent Company Guarantors Non-Guarantors Eliminations Total
Net sales $ —
$ 1,143.9
$ 788.5
$ (235.4 ) $ 1,697.0
Cost of products sold —
663.7
466.6
(235.4 ) 894.9
Gross profit —
480.2
321.9
—
802.1

Selling, general and administrative expense —
189.0
114.5
—
303.5
Advertising and sales promotion expense —
139.3
90.6
—
229.9
Research and development expense —
46.5
—
—
46.5
Impairment charges —
24.4
—
—
24.4
Restructuring charges —
15.8
3.3
—
19.1
Sale of Playtex gloves —
(15.3 ) —
—
(15.3 )
Interest expense associated with debt 40.1
11.6
0.8
—
52.5
Other (income) expense, net —
(1.1 ) 2.3
—
1.2
Intercompany service fees —
(14.6 ) 14.6
—
—
Equity in earnings of subsidiaries (113.2 ) (79.1 ) —
192.3
—
Earnings before income taxes 73.1
163.7
95.8
(192.3 ) 140.3
Income tax (benefit) provision (10.8 ) 50.5
16.7
—
56.4
Net earnings $ 83.9
$ 113.2
$ 79.1
$ (192.3 ) $ 83.9

Statements of Comprehensive Income:
Net earnings $ 83.9
$ 113.2
$ 79.1
$ (192.3 ) $ 83.9
Other comprehensive loss, net of tax (4.9 ) (4.9 ) (6.5 ) 11.4
(4.9 )
Total comprehensive income $ 79.0
$ 108.3
$ 72.6
$ (180.9 ) $ 79.0

~~EDGEWELL PERSONAL CARE COMPANY~~

~~CONDENSED CONSOLIDATING BALANCE SHEETS~~

~~June 30, 2019~~

Parent Company Guarantors Non-Guarantors Eliminations Total
Assets
Current assets
Cash and cash equivalents $ —
$ 1.6
$ 277.4
$ —
$ 279.0
Trade receivables, net —
60.4
181.2
—
241.6
Inventories —
201.0
171.7
—
372.7
Other current assets —
47.1
95.2
—
142.3
Total current assets —
310.1
725.5
—
1,035.6
Investment in subsidiaries 3,387.8
1,127.1
—
(4,514.9 ) —
Intercompany receivables, net ⁽¹⁾
—
907.9
21.9
(929.8 ) —
Property, plant and equipment, net —
295.7
105.0
—
400.7
Goodwill —
762.1
298.1
—
1,060.2
Other intangible assets, net —
714.8
206.6
—
921.4
Other assets 0.8
(0.1 ) 33.7
—
34.4
Total assets $ 3,388.6
$ 4,117.6
$ 1,390.8
$ (5,444.7 ) $ 3,452.3

Liabilities and Shareholders' Equity
Current liabilities $ 6.8
$ 445.1
$ 226.7
$ —
$ 678.6
Intercompany payables, net ⁽¹⁾
929.8
—
—
(929.8 ) —
Long-term debt 1,097.5
—
—
—
1,097.5
Deferred income tax liabilities —
98.3
20.4
—
118.7
Other liabilities —
186.4
16.6
—
203.0
Total liabilities 2,034.1
729.8
263.7
(929.8 ) 2,097.8
Total shareholders' equity 1,354.5
3,387.8
1,127.1
(4,514.9 ) 1,354.5
Total liabilities and shareholders' equity $ 3,388.6
$ 4,117.6
$ 1,390.8
$ (5,444.7 ) $ 3,452.3


~~(1)~~	Intercompany activities include product purchases between Guarantors and Non-Guarantors, charges for services provided by the Parent Company and various subsidiaries to other affiliates within the consolidated entity, and other intercompany activities in the normal course of business.

~~EDGEWELL PERSONAL CARE COMPANY~~

~~CONDENSED CONSOLIDATING BALANCE SHEETS~~

~~September 30, 2018~~

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


~~(1)~~	Intercompany activities include product purchases between Guarantors and Non-Guarantors, charges for services provided by the Parent Company and various subsidiaries to other affiliates within the consolidated entity, and other intercompany activities in the normal course of business.

~~EDGEWELL PERSONAL CARE COMPANY~~

~~CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS~~

~~Nine Months Ended June 30, 2019~~

Parent Company Guarantors Non-Guarantors Eliminations Total
Net cash flow (used by) from operations $ (27.0 ) $ 99.8
$ 70.4
$ (45.0 ) $ 98.2

Cash Flow from Investing Activities
Capital expenditures —
(22.7 ) (16.0 ) —
(38.7 )
Collection of deferred purchase price from accounts receivable sold —
9.0
—
—
9.0
Proceeds from sale of assets —
4.0
0.1
—
4.1
Intercompany receivables and payables, net —
(29.8 ) —
29.8
—
Payment for equity contributions (1.0 ) —
—
1.0
—
Other, net —
(1.3 ) —
—
(1.3 )
Net cash used by investing activities (1.0 ) (40.8 ) (15.9 ) 30.8
(26.9 )

Cash Flow from Financing Activities
Cash proceeds from debt with original maturities greater than 90 days —
316.0
—
—
316.0
Cash payments on debt with original maturities greater than 90 days —
(198.0 ) —
—
(198.0 )
Term Loan repayment —
(185.0 ) —
—
(185.0 )
Net increase in debt with original maturities of 90 days or less —
1.5
4.2
—
5.7
Intercompany dividend —
—
(45.0 ) 45.0
—
Net financing outflow from the Accounts Receivable Facility —
5.6
—
—
5.6
Intercompany receivables and payables, net 29.8
—
—
(29.8 ) —
Proceeds for equity contribution —
—
1.0
(1.0 ) —
Employee shares withheld for taxes (1.8 ) —
—
—
(1.8 )
Net cash from (used by) financing activities 28.0
(59.9 ) (39.8 ) 14.2
(57.5 )

Effect of exchange rate changes on cash —
—
(1.2 ) —
(1.2 )

Net (decline) increase in cash and cash equivalents —
(0.9 ) 13.5
—
12.6
Cash and cash equivalents, beginning of period —
2.5
263.9
—
266.4
Cash and cash equivalents, end of period $ —
$ 1.6
$ 277.4
$ —
$ 279.0

~~EDGEWELL PERSONAL CARE COMPANY~~

~~CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS~~

~~Nine Months Ended June 30, 2018~~

Parent Company Guarantors Non-Guarantors Eliminations Total
Net cash flow from operations $ 126.6
$ 331.4
$ 73.7
$ (350.2 ) $ 181.5

Cash Flow from Investing Activities
Capital expenditures —
(31.3 ) (10.5 ) —
(41.8 )
Acquisitions, net of cash acquired —
(90.2 ) —
—
(90.2 )
Collection of deferred purchase price from accounts receivable sold —
7.2
—
—
7.2
Playtex gloves sale —
19.0
—
—
19.0
Proceeds from sale of assets —
4.7
—
—
4.7
Net cash used by investing activities —
(90.6 ) (10.5 ) —
(101.1 )

Cash Flow from Financing Activities
Cash proceeds from debt with original maturities greater than 90 days —
477.0
—
—
477.0
Cash payments on debt with original maturities greater than 90 days —
(722.0 ) —
—
(722.0 )
Net increase in debt with original maturities of 90 days or less —
(1.2 ) 1.4
—
0.2
Common shares purchased (124.4 ) —
—
—
(124.4 )
Intercompany dividend —
—
(350.2 ) 350.2
—
Net financing inflow from the Accounts Receivable Facility —
4.6
—
—
4.6
Employee shares withheld for taxes (2.2 ) —
—
—
(2.2 )
Net cash used by financing activities (126.6 ) (241.6 ) (348.8 ) 350.2
(366.8 )

Effect of exchange rate changes on cash —
—
2.0
—
2.0

Net decline in cash and cash equivalents —
(0.8 ) (283.6 ) —
(284.4 )
Cash and cash equivalents, beginning of period —
6.4
496.5
—
502.9
Cash and cash equivalents, end of period $ —
$ 5.6
$ 212.9
$ —
$ 218.5

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

(in millions, except per share data, unaudited)

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited Condensed Consolidated Financial Statements and the accompanying notes included in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K filed with the SEC on November ~~19, 2018~~26, 2019 (the ~~“2018~~“2019 Annual Report”). The following discussion may contain forward-looking statements that reflect our plans, estimates, and beliefs and involve risks, uncertainties, and assumptions. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to these differences include those discussed within “Forward-Looking Statements” below and in Item 1A. Risk Factors and “Forward-Looking Statements” included within our ~~2018~~2019 Annual Report.

Forward-Looking Statements

This document contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of ~~1934.~~1934, as amended. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of Edgewell Personal Care Company (“Edgewell”, “we” or “our Company”) or any of our businesses. Forward-looking statements generally can be identified by the use of words or phrases such as “believe,” “expect,” “expectation,” “anticipate,” “may,” “could,” “intend,” “belief,” “estimate,” “plan,” “target,” “predict,” “likely,” “will,” “should,” “forecast,” “outlook,” or other similar words or phrases. These statements are not based on historical facts, but instead reflect our expectations, estimates, or projections concerning future results or events, including, without limitation, the future earnings and performance of our Company or any of our businesses. Many factors outside our control (including the ongoing COVID-19 outbreak), could affect the realization of these estimates. These statements are not guarantees of performance and are inherently subject to known and unknown risks, uncertainties and assumptions that are difficult to predict and could cause our actual results to differ materially from those indicated by those statements. We cannot assure you that any of our expectations, estimates or projections will be achieved. The forward-looking statements included in this report are only made as of the date of this report, and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law. You should not place undue reliance on these statements.

In addition, other risks and uncertainties not presently known to us or that we presently consider immaterial could significantly affect the forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. Risks and uncertainties include those detailed from time to time in our publicly filed documents, including in Item 1A. Risk Factors of Part I of our ~~2018~~2019 Annual ~~Report.~~Report on Form 10-K and Item 1A Risk Factors of Part II of this Quarterly Report on Form 10-Q.

Non-GAAP Financial Measures

While we report financial results in accordance with GAAP, this discussion also includes ~~Non-GAAP~~non-GAAP measures. These Non-GAAP measures are referred to as “adjusted” or “organic” and exclude items such as ~~impairment charges,~~ restructuring charges, ~~Harry’s, Inc. (“Harry’s”)~~ acquisition and integration planning costs, ~~advisory expenses in connection with~~ the ~~evaluation~~disposition of the Infant and Pet Care business, Feminine and Infant Care ~~businesses, Sun Care reformulation charges, the Jack Black, L.L.C. (“Jack Black”) acquisition and integration~~evaluation costs, ~~investor~~legal settlement ~~expense, the disposition of the Playtex® gloves business,~~expenses, and the ~~impact~~amortization of ~~the Tax Cuts and Jobs Act (the “Tax Act”).~~intangibles. Reconciliations of ~~Non-GAAP~~non-GAAP measures are included within this Management’s Discussion and Analysis of Financial Condition and Results of Operations.

This ~~Non-GAAP~~non-GAAP information is provided as a supplement to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. We use this ~~Non-GAAP~~non-GAAP information internally to make operating decisions and believe it is helpful to investors because it allows more meaningful period-to-period comparisons of ongoing operating results. Given the various significant events, including the Project Fuel restructuring, the efforts to acquire Harry’s, Inc. and ~~acquisition~~the subsequent termination of ~~Jack Black,~~the merger agreement with Harry's, we view the use of ~~Non-GAAP~~non-GAAP measures that take into account the impact of these unique events as particularly valuable in understanding our underlying operational results and providing insights into future performance. The information can also be used to perform trend analysis and to better identify operating trends that may otherwise be masked or distorted by the types of items that are excluded. This ~~Non-GAAP~~non-GAAP information is also a component in determining management’s incentive compensation. Finally, we believe this information provides more transparency. The following provides additional detail on our ~~Non-GAAP~~non-GAAP measures:

•We analyze our net sales and segment profit on an organic basis to better measure the comparability of results between periods. Organic net sales and organic segment profit exclude the impact of changes in foreign currency, acquisitions, and ~~dispositions~~divestitures (including ~~the acquisition of Jack Black through February 2019 and~~ the disposition of the ~~Playtex gloves business through October 2018)~~Infant and Pet Care business). This information is provided because these types of fluctuations can distort the underlying change in net sales and segment profit either positively or negatively.

•Adjusted net earnings and adjusted earnings per share are defined as net earnings and diluted earnings per share excluding items such as ~~impairment charges,~~ restructuring charges, ~~Harry’s~~ acquisition and integration planning costs, ~~advisory~~the gain or loss on the disposal of a business, business development evaluation costs, legal settlement expenses, ~~in connection with the evaluation of the Feminine~~ and ~~Infant Care businesses, Sun Care reformulation charges, Jack Black acquisition and integration costs, investor settlement expense, the disposition of the Playtex gloves business,~~ the related tax effects of these ~~items, and the impact of the Tax Act.~~items.

•Adjusted effective tax rate is defined as the effective tax rate excluding items such as ~~impairment charges,~~ restructuring charges, ~~Harry’s~~ acquisition and integration planning costs, ~~advisory~~the gain or loss on the disposal of a business, business development evaluation costs, legal settlement expenses, ~~in connection with the evaluation of the Feminine~~ and ~~Infant Care businesses, Sun Care reformulation charges, Jack Black acquisition and integration costs, investor settlement expense, the disposition of the Playtex gloves business,~~ the related tax effects of these items ~~and the impact of the Tax Act~~ from the income tax provision and earnings before income taxes.

•Free cash flow is defined as net cash from operating activities less net capital expenditures. Free cash flow conversion is defined as free cash flow as a percentage of net earnings adjusted for the net impact of non-cash impairments.

All comparisons are with the same period in the prior year, unless otherwise noted.

Industry and Market Data

Unless we indicate otherwise, we base the information concerning our industry contained or incorporated by reference herein on our general knowledge of and expectations concerning the industry. Our market position, market share, and industry market size are based on our estimates using internal data and external data from various industry analyses, our internal research and adjustments, and assumptions that we believe to be reasonable. We have not independently verified data from industry analyses and cannot guarantee its accuracy or completeness. In addition, we believe that data regarding the industry, market size and our market position and market share within such industry provide general guidance but are inherently imprecise and have not been verified by any independent source. Further, our estimates and assumptions involve risks and uncertainties and are subject to change based on various factors, including those discussed in ~~the “Risk~~“Item 1A. Risk Factors” ~~section~~in Part II of this Quarterly Report on Form 10-Q and in Item 1A. Risk Factors in Part I of our ~~2018~~ Annual ~~Report.~~Report on Form 10-K. These, and other factors, could cause results to differ materially from those expressed in the estimates and assumptions. You are cautioned not to place undue reliance on this data.

Retail sales for purposes of market size, market position and market share information are based on retail sales in U.S. dollars.

Trademarks and Trade Names

We own or have rights to use trademarks and trade names that we use in conjunction with the operation of our business, which appear throughout this Quarterly Report on Form 10-Q. We also may refer to brand names, trademarks, service marks and trade names of other companies and organizations, and these brand names, trademarks, service marks and trade names are the property of their respective owners.

Impact of COVID-19

On March 11, 2020, the World Health Organization declared COVID-19 a worldwide pandemic, which has impacted individuals, families, companies and economies around the world. Due to the uncertainty surrounding COVID-19 and its fast spreading nature, global leaders have taken significant measures to keep their people safe, including asking people to stay home unless they are considered essential employees, closing offices and storefront locations, and cancelling all non-essential travel, for an indefinite period of time. As governmental policies continue to evolve, they will continue to shape the Company’s response to COVID-19. While the full impact of COVID-19 is not certain at this time and although we cannot estimate with reasonable certainty the impact this will have on the global and local economies or our business, the Company has taken significant measures to protect its employees and business.

The Company’s top priority during this time has been the health and welfare of our employees and customers. Additional measures have been put in place at all of our manufacturing locations to ensure the safety of our employees, including thermal scanning, using proper protective gear, making hand sanitizer widely available throughout the facilities and following social distancing guidelines. Additionally, we have implemented work-from-home policies for our employees that can work from home and have cancelled all non-essential travel. We have not had any operational disruption across our manufacturing and distribution facilities as the majority of our facilities have not been impacted by governmental closure orders and have been able to operate without disruption. There has been a slight increase in the level of absenteeism as our employees are taking intermittent leave in order to care for family members, however, this has not caused a significant disruption in our production.

As noted below in the discussion of our consolidated results, we have had strong results for the three months ended March 31, 2020, which has been driven by an increase in demand for our Skin Care, primarily Wet Ones, and our Feminine Care products, partially due to a change in consumer habits and increased pantry loading as a result of COVID-19. We expect to see continued strong demand for Wet Ones going forward. Due to the seasonality of our Sun Care products and the impact that stay at home measures may have on future travel and outdoor activities, we expect that there may be a decline in the demand for these products in the near term. The impact that COVID-19 may have on our customers, their cash flows and ability to operate is not fully known at this time. However, in some cases we have seen changes in payment patterns, requests for extended payment terms or reduction in customer operations, resulting in an increase in our bad debt expense for the three months ending March 31, 2020. As the duration and severity of the COVID-19 pandemic could continue to impact economic conditions which could impact consumer spending and demand, we will continue to closely monitor the impact that this has on our business and customers.

We continue to closely monitor our supply chain and to date have not experienced any issues securing key ingredients for our products. The duration and severity of COVID-19 could result in disruptions related to our key suppliers, however, the impact, timing and severity of potential disruptions cannot be reasonably estimated at this time.

We experienced increased volatility in foreign currency exchange rates and commodity prices in the three months ended March 31, 2020, which is largely due to the economic uncertainty from COVID-19 and the depreciation of certain foreign currencies against the U.S. dollar. We expect to see continued volatility in the foreign currency exchange rates; however, we cannot estimate the impact that this will have at this time.

We expect to maintain adequate liquidity during these uncertain times. As noted in “Liquidity and Capital Resources” below, COVID-19 has not had a significant impact on our liquidity, cash flows or capital resources, including our ability to enter into the Credit Agreement. We will continue to monitor the impact that COVID-19 has on our liquidity needs and the current economic market.

Significant Events

~~Acquisitions~~Divestiture

On ~~May 9,~~December 17, 2019, we announced that we have entered into a definitive Agreement and Plan of Merger (the “ Merger Agreement”) under which we will combine with Harry’s in a cash and stock transaction that values Harry’s at $1,370 (the “Merger”). Under the terms of the Merger Agreement and based on our closing share price on May 8, 2019, approximately 79% of the total value of the transaction will be paid in cash and 21% will be paid in shares of our common stock. The Merger has been approved by the Boards of Directors of both our Company and Harry’s and is expected to close by the end of the first quarter of the 2020 calendar year, subject to the satisfaction of customary closing conditions and receipt of regulatory clearances. We intend to finance the Merger through a combination of cash on our balance sheet, net new debt and equity. Bank of America Merrill Lynch has provided committed financing in connection with the Merger. The Merger of Edgewell and Harry’s brings together complementary capabilities to create a next-generation consumer products platform with an expansive runway for accelerated topline growth and enhanced value creation. We have incurred costs associated with the acquisition of Harry’s totaling $1.8 in the third quarter of fiscal 2019.

~~On March 1, 2018,~~ we completed the ~~acquisition~~sale of ~~Jack Black, a leading U.S. based luxury men’s skincare products company, for approximately $90.2, net of cash acquired. The acquisition will create opportunities to expand~~ our ~~personal care portfolio in growing categories~~Infant and Pet Care business included in the ~~U.S.~~All Other segment for $122.5 which included consideration for providing services for up to one year under a transition services agreement. For further information on the divestiture of the Infant and ~~globally, while nurturing the brand equity of Jack Black. The results of Jack Black for the post-acquisition period are included within our results since the acquisition date. Refer~~Pet Care business, refer to Note 32 of ~~our~~ Notes to Condensed Consolidated Financial ~~Statements for further discussion related to the acquisition of Jack Black.~~

~~Impairment~~

During the third quarter of fiscal 2019, we determined a triggering event had occurred as a result of a decline in our market capitalization after a decline in the Company’s share price during the quarter. We performed an interim impairment analysis using financial information through June 30, 2019 and forecasts for cash flows developed using our three-year strategic plan. The interim impairment review was performed on all long-lived assets, including definite lived intangibles, all reporting units, and indefinite-lived intangible assets. The results of the impairment review indicated the carrying value of the goodwill of the Wet Shave and Infant Care reporting units were greater than their respective fair values, resulting in a non-cash goodwill impairment of $358.0 and $29.0, respectively. Additionally, the carrying value of the Wet Ones and Diaper Genie trade names were greater than the fair values and resulted in non-cash impairments of the indefinite-lived intangible assets of $87.0 and $75.0, respectively. Refer to Note 7 of our Notes to Condensed Consolidated Financial Statements for further discussion on the interim impairment test. We will continue to evaluate the fair value of our reporting units and indefinite-lived intangible assets in the fourth quarter as a part of our annual impairment review on July 1.

~~Refer to additional discussion around goodwill and intangible asset valuation in our 2018 Annual Report.~~Statements.

Project Fuel

~~In February 2018, we announced~~As previously outlined, Project Fuel is an enterprise-wide transformational initiative that ~~is designed~~was launched in the second fiscal quarter of 2018 to address all aspects of our business and cost structure, simplifying and transforming ~~the~~our organization, structure and key ~~processes that will provide the necessary catalyst for~~processes. Project Fuel is facilitating further re-investment in ~~the Company’s~~our growth ~~objectives~~strategy while enabling us to achieve our desired future state operations.

~~Initial~~We expect Project Fuel will generate $225 to $240 in total annual gross savings by the end of the 2021 fiscal year. It is expected that the savings generated will be used to fuel investments and brand building in strategic growth initiatives, offset anticipated operational cost headwinds from inflation and other rising input costs ~~incurred~~and improve our overall profitability and cash flows. Project Fuel related savings were approximately $18 and $33 for the three and six months ended March 31, 2020, respectively, bringing cumulative savings to $170 for Project Fuel to date.

To implement the restructuring element of Project Fuel, we expect to incur one-time pre-tax charges of approximately $130 to $140 through the end of the 2021 fiscal year. Restructuring and related charges were $12.4 and $20.4 for the three and six months ended March 31, 2020, respectively, bringing cumulative charges to $115 for the project to date.

Capital expenditures for Project Fuel were ~~related to efforts to fully define the scope~~$4.5 and reach of the project. In addition, the Company has incurred global severance costs related to the reduction of overhead. The Company has incurred costs and realized savings for Project Fuel in fiscal 2018 and$9.3 for the ~~first nine~~three and six months ~~of fiscal 2019 and expects to incur additional costs and realize additional savings during the remainder of fiscal 2019 through fiscal 2021.~~ended March 31, 2020, respectively.

For further information on our restructuring projects, refer to Note 43 of Notes to Condensed Consolidated Financial Statements.

~~Feminine and Infant Care Evaluation Costs~~

In February 2019, we began exploring strategic alternatives for the Feminine Care and Infant Care businesses, including the potential sale of one or both businesses. We concluded our strategic review of the Feminine Care business and have elected to retain the business at this time and have determined that there is currently more opportunity for value creation and de-leveraging by retaining the business given improving business trends and outlook. We continue to explore strategic alternatives for the Infant Care business. We incurred $0.5 and $1.5 during the three and nine months ended June 30, 2019, respectively, of advisory expenses in connection with the evaluation of the Feminine and Infant Care businesses. The costs are related to consulting fees for the analysis of strategic alternatives of the Feminine and Infant Care businesses and are included in Selling, general and administrative expenses (“SG&A”) on the Condensed Consolidated Statement of Earnings.

~~Sun Care Reformulation Costs~~

As a result of discussions with one of our suppliers during the fourth quarter of fiscal 2018, we made certain supply chain and procurement decisions, including implementing a raw material substitution due to anticipated regulatory changes related to European Union Regulation (EC) No. 1907/2006 concerning the Registration, Evaluation, Authorization, and Restriction of Chemicals, establishing a European Chemical Agency (“REACH”), that affect the supply chain of select Sun Care products. To align with our raw material selection process, we chose to make these changes at that time, in advance of Sun Care season, to minimize potential impact to our distribution channels during the peak sales period. We incurred $1.0 and $1.5 in Sun Care reformulation costs during the three and nine months ending June 30, 2019, respectively, and expect to incur additional charges over the remainder of fiscal 2019 related to these supply chain decisions. The costs associated with the Sun Care reformulation are included in Costs of products sold on the Condensed Consolidated Statement of Earnings.

~~Sale of Playtex Gloves Business~~

On October 26, 2017, the Company finalized its sale of the Playtex gloves business to a household products company (the “Acquirer”) for $19.0. The sale was finalized on October 26, 2017. The sale provides the Acquirer with indefinite and exclusive worldwide rights to the Playtex trademark for gloves. The strategic sale of the Playtex gloves business allows the Company to better focus and utilize its resources on its other product lines. Total assets sold were $3.7, resulting in a pre-tax gain on sale of $15.3 in fiscal 2018. Refer to Note 3 of our Notes to Condensed Consolidated Financial Statements for further discussion related to the sale of the Playtex gloves business.

The following is a summary of key results for the ~~third~~second quarter and first ~~nine~~six months of fiscal ~~2019~~2020 compared to the ~~third~~second quarter and first ~~nine~~six months of fiscal ~~2018.~~2019. Net earnings and earnings per share (“EPS”) for the ~~time~~ periods presented were impacted by ~~impairment~~restructuring charges, ~~restructuring activities, Harry’s~~ acquisition and integration planning costs, the gain on the disposition of the Infant and Pet Care business, Feminine and Infant Care evaluation costs, ~~Sun Care reformulation costs, Jack Black acquisition and integration costs, investor~~legal settlement expenses, ~~the gain on the sale of the Playtex gloves business, the related tax impact from those costs,~~ and the impact of the Tax Act, as described in the table below. The impact of these items on reported net earnings and EPS are provided as a reconciliation of net earnings and EPS to adjusted net earnings and adjusted diluted EPS, both of which are ~~Non-GAAP~~non-GAAP measures.

~~Third~~Second Quarter of Fiscal ~~2019~~

~~Net sales~~ in the third quarter of fiscal 2019 were $609.2, down 1.8% compared to the prior year quarter, inclusive of a 1.5% decline due to currency movements. Excluding the impact of currency movements, organic net sales decreased 0.3% primarily driven by declines in the Wet Shave and Feminine Care businesses, partly offset by growth in the Sun and Skin Care business.

~~Net loss~~ in the third quarter of fiscal 2019 was $441.4 compared to net earnings of $12.1 in the prior year quarter. On an adjusted basis, as illustrated in the following table, net earnings for the third quarter of fiscal 2019 increased 23.0% to $60.5. The increase was primarily driven by lower advertising and promotional (“A&P”) and overhead spend partially offset by lower gross margins.

~~Net loss per diluted share~~ during the third quarter of fiscal 2019 was $8.16 compared to net earnings per diluted share of $0.22 in the prior year quarter. On an adjusted basis, as illustrated in the following table, net earnings per diluted share during the third quarter of fiscal 2019 was $1.11 compared to $0.91 in the prior year quarter.



☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



	June 30, 2019			September 30, 2018
Assets
Current assets
Cash and cash equivalents	$	279.0		$	266.4
Trade receivables, less allowance for doubtful accounts of $5.7 and $6.0	241.6			226.5
Inventories	372.7			329.5
Other current assets	142.3			128.8
Total current assets	1,035.6			951.2
Property, plant and equipment, net	400.7			424.1
Goodwill	1,060.2			1,450.8
Other intangible assets, net	921.4			1,099.0
Other assets	34.4			28.2
Total assets	$	3,452.3		$	3,953.3

Liabilities and Shareholders’ Equity
Current liabilities
Current maturities of long-term debt	$	125.0		$	184.9
Notes payable	12.6			8.2
Accounts payable	221.9			238.4
Other current liabilities	319.1			285.5
Total current liabilities	678.6			717.0
Long-term debt	1,097.5			1,103.8
Deferred income tax liabilities	118.7			176.1
Other liabilities	203.0			211.8
Total liabilities	2,097.8			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; 54,129,125 and 54,040,386 outstanding	0.7			0.7
Additional paid-in capital	1,632.8			1,628.3
Retained earnings	693.4			1,083.1
Common shares in treasury at cost, 11,122,864 and 11,211,603	(811.5		)	(819.2		)
Accumulated other comprehensive loss	(160.9		)	(148.3		)
Total shareholders’ equity	1,354.5			1,744.6
Total liabilities and shareholders’ equity	$	3,452.3		$	3,953.3


•	~~Sun and Skin Care~~ consists of Banana Boat® and Hawaiian Tropic® sun care products, Jack Black® and Bulldog® men’s skin care products, Wet Ones® wipes, and, until its sale in October 2017, the Playtex® household gloves business.


•	~~Feminine Care~~ ~~includes tampons, pads, and liners sold under the Playtex Gentle Glide® and Sport®, Stayfree®, Carefree®, and o.b.® brands.~~


•	~~All Other~~ ~~includes infant 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.~~


	Three Months Ended June 30, 2019													Three Months Ended March 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	$	0.5	$	0.1	$	—	$	—	$	3.0	$	3.6	Severance and related benefit costs	$	4.4	$	1.7	$	0.9	$	0.3	$	1.8	$	9.1
Asset impairment and accelerated depreciation	0.5		—		—		—		—		0.5		Asset impairment and accelerated depreciation	0.5		—		—		—		—		0.5
Consulting, project implementation and management and, other exit costs	0.1		—		—		—		4.7		4.8
Consulting, project implementation and management, and other exit costs													Consulting, project implementation and management, and other exit costs	—		—		—		—		5.8		5.8
Total Restructuring	$	1.1	$	0.1	$	—	$	—	$	7.7	$	8.9	Total Restructuring	$	4.9	$	1.7	$	0.9	$	0.3	$	7.6	$	15.4



	Nine Months Ended June 30, 2019
	Wet Shave		Sun and Skin Care		Feminine Care		All Other		Corporate		Total
Project Fuel
Severance and related benefit costs	$	12.2	$	2.3	$	1.2	$	0.4	$	5.8	21.9
Asset impairment and accelerated depreciation	1.0		—		—		—		0.5		1.5
Consulting, project implementation and management and, other exit costs	2.4		—		—		—		17.0		19.4
Total Restructuring	$	15.6	$	2.3	$	1.2	$	0.4	$	23.3	$	42.8



	Three Months Ended June 30, 2018
	Wet Shave		Sun and Skin Care		Feminine Care		All Other		Corporate		Total
Project Fuel
Severance and related benefit costs	$	1.6	$	0.2	$	1.0	$	0.1	$	—	2.9
Consulting, project implementation and management and, other exit costs	2.0		0.2		—		—		10.8		13.0
Total Restructuring	$	3.6	$	0.4	$	1.0	$	0.1	$	10.8	$	15.9


	Nine Months Ended June 30, 2018													Six Months Ended March 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	$	3.1	$	0.9	$	1.1	$	0.1	$	—	5.2		Severance and related benefit costs	$	11.7	$	2.2	$	1.2	$	0.4	$	2.8	$	18.3
Consulting, project implementation and management and, other exit costs	2.0		0.2		—		—		12.2		14.4
Asset impairment and accelerated depreciation													Asset impairment and accelerated depreciation	0.5		—		—		—		0.5		1.0
Consulting, project implementation and management, and other exit costs													Consulting, project implementation and management, and other exit costs	2.3		—		—		—		12.3		14.6
Total Restructuring	$	5.1	$	1.1	$	1.1	$	0.1	$	12.2	$	19.6	Total Restructuring	$	14.5	$	2.2	$	1.2	$	0.4	$	15.6	$	33.9



							Utilized
	October 1, 2018		Charge to Income		Other ⁽¹⁾		Cash			Non-Cash			June 30, 2019
Restructuring
Severance and related benefit costs	$	5.1	$	21.9	$	—	$	(16.9	)	$	—		$	10.1
Asset impairment and accelerated depreciation	—		1.5		—		—			(1.5		)	—
Consulting, project implementation and management, and other exit costs	2.6		19.4		—		(21.4		)	—			0.6
Total Restructuring	$	7.7	$	42.8	$	—	$	(38.3	)	$	(1.5	)	$	10.7



								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



	June 30, 2019						September 30, 2018
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Trade names and brands	$	206.6	$	32.8	$	173.8	$	206.7	$	25.4	$	181.3
Technology and patents	78.8		76.4		2.4		79.0		75.9		3.1
Customer related and other	178.6		101.3		77.3		179.3		96.2		83.1
Total amortizable intangible assets	$	464.0	$	210.5	$	253.5	$	465.0	$	197.5	$	267.5


~~(1)~~	~~At June 30, 2019,~~(1)At March 31, 2020, the balance for the senior notes due 2021 and the senior notes due 2022 are reflected net of debt issuance costs of $0.5 and $0.9, ~~and $1.2,~~ respectively. At September 30, ~~2018, the balance for the senior notes due 2021, the senior notes due 2022, and the term loan are reflected net of debt issuance costs of $1.2, $1.5 and $0.1, respectively.~~


~~(2)~~	~~At June 30, 2019 and September 30, 2018, the balance for the senior notes due 2022 was reflected net of discount of $0.4 and $0.5, respectively.~~



	For the Three Months Ended June 30,						For the Nine Months Ended June 30,						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	$	1.4		$	(1.0	)	$	4.5		$	(2.5	)	Other expense, net
	1.4			(1.0		)	4.5			(2.5		)	Total before tax
	0.4			(0.4		)	1.4			(0.8		)	Income tax (benefit) provision
	1.0			(0.6		)	3.1			(1.7		)	Net of tax
Amortization of defined benefit pension and postretirement items
Actuarial losses	$	(1.1	)	$	(1.1	)	$	(3.1	)	(3.4		)	(1)
	(1.1		)	(1.1		)	(3.1		)	(3.4		)	Total before tax
	(0.3		)	(0.3		)	(0.8		)	(1.0		)	Income tax (benefit) provision
	(0.8		)	(0.8		)	(2.3		)	$	(2.4	)	Net of tax

Total reclassifications for the period	$	0.2		$	(1.4	)	$	0.8		$	(4.1	)	Net of tax


~~(1)~~	~~These AOCI components are included in the computation of net periodic cost (benefit). See Note 11 of Notes to Condensed Consolidated Financial Statements.~~



	At June 30, 2019					At September 30, 2018
	Assets ⁽¹⁾		Liabilities ⁽²⁾			Assets ⁽¹⁾			Liabilities ⁽²⁾
Foreign currency contracts
Gross amounts of recognized assets (liabilities)	$	0.7	$	(2.3	)	$	5.3		$	—
Gross amounts offset in the balance sheet	—		0.2			(0.1		)	—
Net amounts of assets (liabilities) presented in the balance sheet	$	0.7	$	(2.1	)	$	5.2		$	—



	Parent Company			Guarantors			Non-Guarantors			Eliminations			Total
Net sales	$	—		$	420.9		$	276.5		$	(88.2	)	$	609.2
Cost of products sold	—			237.0			168.2			(88.2		)	317.0
Gross profit	—			183.9			108.3			—			292.2

Selling, general and administrative expense	—			58.1			36.7			—			94.8
Advertising and sales promotion expense	—			58.3			33.5			—			91.8
Research and development expense	—			12.9			—			—			12.9
Impairment charges	—			437.3			111.7			—			549.0
Restructuring charges	—			4.8			2.3			—			7.1
Interest expense associated with debt	13.3			2.1			0.2			—			15.6
Other expense, net	—			0.6			2.1			—			2.7
Intercompany service fees	—			(3.1		)	3.1			—			—
Equity in earnings of subsidiaries	431.4			92.1			—			(523.5		)	—
Loss before income taxes	(444.7		)	(479.2		)	(81.3		)	523.5			(481.7		)
Income tax (benefit) provision	(3.3		)	(47.8		)	10.8			—			(40.3		)
Net loss	$	(441.4	)	$	(431.4	)	$	(92.1	)	$	523.5		$	(441.4	)

Statements of Comprehensive Income:
Net loss	$	(441.4	)	$	(431.4	)	$	(92.1	)	$	523.5		$	(441.4	)
Other comprehensive income, net of tax	10.1			10.1			10.6			(20.7		)	10.1
Total comprehensive loss	$	(431.3	)	$	(421.3	)	$	(81.5	)	$	502.8		$	(431.3	)



	Quarter Ended June 30,
	Net Earnings						Diluted EPS
	2019			2018			2019			2018
Net (Loss) Earnings and Diluted EPS - GAAP	$	(441.4	)	$	12.1		$	(8.16	)	$	0.22
Impairment charges	549.0			24.4			10.14			0.45
Restructuring and related costs ⁽¹⁾	8.9			15.9			0.17			0.29
Harry’s acquisition and integration costs ⁽²⁾	1.8			—			0.03			—
Feminine and Infant Care evaluation costs⁽³⁾	0.5			—			0.01			—
Sun Care reformulation costs ⁽⁴⁾	1.0			—			0.02			—
Jack Black acquisition and integration ⁽⁵⁾	0.1			2.3			—			0.05
Sale of Playtex Gloves	—			0.6			—			0.01
Impact of dilutive shares ⁽⁶⁾	—			—			(0.01		)	—
Income taxes	(59.4		)	(6.1		)	(1.09		)	(0.11		)
Adjusted Net Earnings and Adjusted Diluted EPS - Non-GAAP	$	60.5		$	49.2		$	1.11		$	0.91

Weighted-average shares outstanding - Diluted							54.1			54.1


~~(2)~~	~~Includes pre-tax SG&A of $1.8 for the three months ended June 30, 2019 for costs associated with the acquisition of Harry’s.~~


~~(3)~~	~~Includes pre-tax SG&A of $0.5 for the three months ended June 30, 2019, associated with consulting costs for the Company to evaluate segments.~~


~~(5)~~	Includes pre-tax SG&A of $0.1 and $0.5 for the three months ended June 30, 2019 and 2018, respectively, for costs associated with the integration of the Jack Black acquisition. Additionally, acquisition and integration costs of $1.8 were included in Cost of products sold for the three months ended June 30, 2018.


~~(6)~~	~~GAAP EPS was calculated using basic weighted average shares outstanding due to a net loss. Adjusted diluted EPS was calculated using diluted weighted average shares outstanding.~~


	Quarter Ended March 31,
	Net Earnings						Diluted EPS
	2020		2019		2020		2019
Net Earnings and Diluted EPS — GAAP	$	19.5	$	48.2	$	0.36	$	0.89
Restructuring and related costs, net	12.4		15.4		0.23		0.28
Acquisition and integration planning costs	25.5		0.5		0.47		0.01
Gain on sale of Infant and Pet Care business	1.1		—		0.02		—
Feminine and Infant Care evaluation costs	—		1.0		—		0.02
Sun Care reformulation costs	—		0.4		—		0.01
Income taxes ⁽¹⁾	(8.1)		(4.0)		(0.16)		(0.08)
Adjusted Net Earnings and Adjusted Diluted EPS — Non-GAAP	$	50.4	$	61.5	$	0.92	$	1.13

Weighted-average shares outstanding — Diluted					54.5		54.3



	Nine Months Ended June 30,
	Net Earnings						Diluted EPS
	2019			2018			2019			2018
Net Loss and Diluted EPS - GAAP	$	(393.6	)	$	83.9		$	(7.27	)	$	1.54
Impairment charge	549.0			24.4			10.14			0.45
Restructuring and related costs ⁽¹⁾	42.8			19.6			0.79			0.36
Harry’s acquisition and integration costs ⁽²⁾	1.8			—			0.03			—
Feminine and Infant Care evaluation costs⁽³⁾	1.5			—			0.03			—
Sun Care reformulation costs ⁽⁴⁾	1.5			—			0.03			—
Jack Black acquisition and integration ⁽⁵⁾	1.1			4.9			0.02			0.09
Investor settlement expense ⁽⁶⁾	0.9			—			0.02			—
Gain on sale of Playtex gloves	—			(15.3		)	—			(0.28		)
Impact of dilutive shares ⁽⁷⁾	—			—			(0.01		)	—
Income taxes ⁽⁸⁾	(62.8		)	13.9			(1.16		)	0.25
Adjusted Net Earnings and Adjusted Diluted EPS - Non-GAAP	$	142.2		$	131.4		$	2.62		$	2.41

Weighted-average shares outstanding - Diluted							54.1			54.6


~~(3)~~	~~Includes pre-tax SG&A of $1.5 for the nine months ended June 30, 2019, associated with consulting costs for the Company to evaluate segments.~~


~~(5)~~	Includes pre-tax SG&A of $1.1 and $3.1 for the nine months ended June 30, 2019 and 2018, respectively, for costs associated with the integration of the Jack Black acquisition. Additionally, acquisition and integration costs of $1.8 were included in Cost of products sold for the nine months ended June 30, 2018.


~~(7)~~	~~GAAP EPS was calculated using basic weighted average shares outstanding due to a net loss. Adjusted diluted EPS was calculated using diluted weighted average shares outstanding.~~


~~(8)~~	Includes Income tax expense of $4.7 in the first nine months of fiscal 2019 related to the fiscal 2018 one-time transition tax from the Tax Act. The impact of the Tax Act totaling $17.4 in Income tax expense for the first nine months of fiscal 2018 in addition to the tax impact of the other adjustments to Net Earnings and Diluted EPS - GAAP.


	Six Months Ended March 31,
	Net Earnings						Diluted EPS
	2020		2019		2020		2019
Net Earnings and Diluted EPS — GAAP	$	41.9	$	47.8	$	0.77	$	0.88
Restructuring and related costs, net	20.4		33.9		0.37		0.62
Acquisition and integration planning costs	31.7		1.0		0.58		0.02
Gain on sale of Infant and Pet Care business	(4.1)		—		(0.08)		—
Feminine and Infant Care evaluation costs	0.3		1.0		0.01		0.02
Legal settlement expenses	—		0.9		—		0.02
Sun Care reformulation costs	—		0.5		—		0.01
Income taxes ⁽¹⁾	(9.9)		(3.4)		(0.18)		(0.07)
Adjusted Net Earnings and Adjusted Diluted EPS — Non-GAAP	$	80.3	$	81.7	$	1.47	$	1.50

Weighted-average shares outstanding — Diluted					54.5		54.3