Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2022 | Jan. 31, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-15401 | |
Entity Registrant Name | EDGEWELL PERSONAL CARE COMPANY | |
Entity Incorporation, State or Country Code | MO | |
Entity Tax Identification Number | 43-1863181 | |
Entity Address, Address Line One | 6 Research Drive | |
Entity Address, City or Town | Shelton, | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06484 | |
City Area Code | (203) | |
Local Phone Number | 944-5500 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | EPC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 51,417,185 | |
Entity Central Index Key | 0001096752 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings and Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||
Net sales | $ 469.1 | $ 463.3 |
Cost of products sold | 280.1 | 273.4 |
Gross profit | 189 | 189.9 |
Selling, general and administrative expense | 95.7 | 96.9 |
Advertising and sales promotion expense | 45.9 | 46.2 |
Research and development expense | 13.4 | 12.8 |
Restructuring charges | 2.7 | 2.2 |
Operating income | 31.3 | 31.8 |
Interest expense associated with debt | 19.9 | 17.3 |
Other income, net | (5) | (1.7) |
Earnings before income taxes | 16.4 | 16.2 |
Income tax provision | 4.5 | 5 |
Net earnings | $ 11.9 | $ 11.2 |
Basic net earnings per share | $ 0.23 | $ 0.21 |
Diluted net earnings per share | $ 0.23 | $ 0.20 |
Condensed Consolidated Statements of Comprehensive Income | ||
Net earnings | $ 11.9 | $ 11.2 |
Other comprehensive income, net of tax | ||
Foreign currency translation adjustments | 48 | (6.9) |
Pension and postretirement activity, net of tax | (0.2) | 0 |
Deferred gain (loss) on hedging activity, net of tax | (8.2) | 0.4 |
Total other comprehensive income (loss), net of tax | 39.6 | (6.5) |
Total comprehensive income | $ 51.5 | $ 4.7 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Earnings and Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||
Pension and postretirement activity, tax | $ (0.1) | $ 0 |
Deferred gain on hedging activity, tax | $ (3.8) | $ 0.1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 |
Current assets | ||
Cash and cash equivalents | $ 184.1 | $ 188.7 |
Trade receivables, less allowance for doubtful accounts | 123.1 | 136.9 |
Inventories | 540.2 | 449.3 |
Other current assets | 160.1 | 167.3 |
Total current assets | 1,007.5 | 942.2 |
Property, plant and equipment, net | 348.6 | 345.5 |
Goodwill | 1,332.3 | 1,322.2 |
Other intangible assets, net | 996.8 | 996.6 |
Other assets | 111.8 | 106.6 |
Total assets | 3,797 | 3,713.1 |
Current liabilities | ||
Notes payable | 25.2 | 19 |
Accounts payable | 245 | 237.3 |
Other current liabilities | 231.1 | 291.7 |
Total current liabilities | 501.3 | 548 |
Long-term debt | 1,492 | 1,391.4 |
Deferred income tax liabilities | 140.9 | 140.4 |
Other liabilities | 176.1 | 173.6 |
Liabilities, Total | 2,310.3 | 2,253.4 |
Shareholders’ equity | ||
Preferred shares | 0 | 0 |
Common shares | 0.7 | 0.7 |
Additional paid-in capital | 1,577.8 | 1,604.3 |
Retained earnings | 935.6 | 931.7 |
Common shares in treasury at cost | (850.9) | (860.9) |
Accumulated other comprehensive loss | (176.5) | (216.1) |
Total shareholders’ equity | 1,486.7 | 1,459.7 |
Total liabilities and shareholders’ equity | $ 3,797 | $ 3,713.1 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Trade receivables, less allowance for doubtful accounts | $ 3.9 | $ 3.8 |
Preferred shares, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred shares, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred shares, issued (in shares) | 0 | 0 |
Preferred shares, outstanding (in shares) | 0 | 0 |
Common shares, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common shares, authorized (in shares) | 300,000,000 | 300,000,000 |
Common shares, issued (in shares) | 65,251,989 | 65,251,989 |
Common shares, outstanding (in shares) | 51,536,745 | 51,573,001 |
Treasury shares (in shares) | 13,715,244 | 13,678,988 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flow from Operating Activities | ||
Net earnings | $ 11.9 | $ 11.2 |
Depreciation and amortization | 22.5 | 21.4 |
Share-based compensation expense | 6.5 | 5.5 |
Loss on sale of assets | 0.7 | 0.3 |
Deferred compensation payments | 0 | (0.5) |
Deferred income taxes | (0.1) | (0.1) |
Proceeds (payments) for other operating activities | (1.8) | 1.7 |
Changes in operating assets and liabilities | (126) | (118.5) |
Net cash used by operating activities | (86.3) | (79) |
Cash Flow from Investing Activities | ||
Capital expenditures | (11.3) | (9.4) |
Acquisition of Billie, net of cash acquired | 0 | 308.8 |
Collection of deferred purchase price on accounts receivable sold | 0.4 | 0.8 |
Other, net | (0.3) | (0.3) |
Proceeds from sale of Infant and Pet Care business | 0 | 5 |
Net cash used by investing activities | (11.2) | (312.7) |
Cash Flow from Financing Activities | ||
Cash proceeds from debt with original maturities greater than 90 days | 241 | 291 |
Cash payments on debt with original maturities greater than 90 days | (141) | (93) |
Net increase in debt with original maturities of 90 days or less | 5.5 | 1.4 |
Repurchase of shares | (15) | (24.5) |
Dividends to common shareholders | (8.3) | (8.5) |
Net financing inflow (outflow) from the Accounts Receivable Facility | 8.8 | (1.6) |
Employee shares withheld for taxes | (8.1) | (9.7) |
Proceeds (payments) for other financing activities | 0 | 0.4 |
Net cash from financing activities | 82.9 | 155.5 |
Effect of exchange rate changes on cash | 10 | (3.2) |
Net decrease in cash and cash equivalents | (4.6) | (239.4) |
Cash and cash equivalents, beginning of period | 188.7 | 479.2 |
Cash and cash equivalents, end of period | $ 184.1 | $ 239.8 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Changes in Shareholders' Equity Statement - USD ($) $ in Millions | Total | Common shares | Treasury shares | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Treasury shares (in shares) | (10,900,000) | |||||
Common shares, issued (in shares) | 65,200,000 | |||||
Beginning shareholders' equity at Sep. 30, 2021 | $ 1,584.3 | $ 0.7 | $ (776.3) | $ 1,631.1 | $ 865.7 | $ (136.9) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 11.2 | 11.2 | ||||
Foreign currency translation adjustments | (6.9) | (6.9) | ||||
Pension and postretirement activity, net of tax | 0 | 0 | ||||
Deferred gain (loss) on hedging activity, net of tax | 0.4 | 0.4 | ||||
Dividends declared to common shareholders | (8.4) | (8.4) | ||||
Treasury shares repurchased (in usd) | (24.5) | $ (24.5) | ||||
Treasury shares repurchased (in shares) | (500,000) | |||||
Activity under share plans (shares) | 300,000 | |||||
Activity under share plans (in usd) | (3.8) | $ 33.6 | ||||
APIC activity under share plans | (37.4) | |||||
Ending shareholders' equity at Dec. 31, 2021 | $ 1,552.3 | $ 0.7 | $ (767.2) | 1,593.7 | 868.5 | (143.4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Treasury shares (in shares) | (11,100,000) | |||||
Common shares, issued (in shares) | 65,200,000 | |||||
Treasury shares (in shares) | 13,678,988 | (13,700,000) | ||||
Common shares, issued (in shares) | 65,251,989 | 65,200,000 | ||||
Beginning shareholders' equity at Sep. 30, 2022 | $ 1,459.7 | $ 0.7 | $ (860.9) | 1,604.3 | 931.7 | (216.1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 11.9 | (11.9) | ||||
Foreign currency translation adjustments | 48 | 48 | ||||
Pension and postretirement activity, net of tax | (0.2) | (0.2) | ||||
Deferred gain (loss) on hedging activity, net of tax | (8.2) | (8.2) | ||||
Dividends declared to common shareholders | (8) | (8) | ||||
Treasury shares repurchased (in usd) | $ (15) | $ (15) | ||||
Treasury shares repurchased (in shares) | (400,000) | (400,000) | ||||
Activity under share plans (shares) | 400,000 | |||||
Activity under share plans (in usd) | $ (1.5) | $ 25 | ||||
APIC activity under share plans | (26.5) | |||||
Ending shareholders' equity at Dec. 31, 2022 | $ 1,486.7 | $ 0.7 | $ (850.9) | $ 1,577.8 | $ 935.6 | $ (176.5) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Treasury shares (in shares) | 13,715,244 | (13,700,000) | ||||
Common shares, issued (in shares) | 65,251,989 | 65,200,000 |
Background and Basis of Present
Background and Basis of Presentation | 3 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation Background 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, and feminine care categories. With operations in over 20 countries, our products are widely available in more than 50 countries. The Company conducts its business in the following three segments: • Wet Shave consists of products sold under the Schick®, Wilkinson Sword®, Edge, Skintimate®, Billie®, 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®, Bulldog® and Cremo® men’s grooming products, and Wet Ones® products. • Feminine Care includes tampons, pads, and liners sold under the Playtex Gentle Glide® and Sport®, Stayfree®, Carefree®, and o.b.® brands. 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 statement 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 included in its Annual Report on Form 10-K filed with the SEC on November 16, 2022. Acquisition of Billie, Inc. On November 29, 2021, the Company completed the acquisition of Billie, Inc. (“Billie”) (the “Acquisition”), a leading U.S. based consumer brand company that offers a broad portfolio of personal care products for women. The results of Billie for the post-acquisition period are included within the Company’s results since the acquisition date. For more information on the Acquisition, see Note 2 of Notes to Condensed Consolidated Financial Statements. Statement of Cash Flows Presentation The net presentation of borrowings and repayments under the Company's U.S revolving credit facility in the Condensed Consolidated Statement of Cash Flows for the three months ended December 31, 2021 has been revised in order to reflect borrowings and repayments on a gross basis, resulting in $93.0 of repayments presented gross that were previously netted against borrowings. Net cash from financing activities reported in the Condensed Consolidated Statement of Cash Flows for the three months ended December 31, 2021 was not impacted and the Company has concluded that this correction is not material to its financial statements. |
Business Combinations
Business Combinations | 3 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Business Combinations and Divestitures | Business Combinations Billie Inc. On November 29, 2021 (the “Acquisition Date”), the Company completed the Acquisition for cash consideration of $309.4, net of cash acquired. As a result of the Acquisition, Billie became a wholly owned subsidiary of the Company. The Company accounted for the Acquisition utilizing the acquisition method of accounting, which requires assets and liabilities to be recognized based on estimates of their acquisition date fair values. The determination of the values of the acquired assets and assumed liabilities, including goodwill, other intangible assets and deferred taxes, requires significant judgement. We have calculated fair values of the assets and liabilities acquired from Billie, including goodwill and intangible assets and working capital. The Company completed the final fair value determination of the Billie Acquisition in the fourth quarter of fiscal year 2022. The Company used variations of the income approach in determining the fair value of intangible assets acquired in the Acquisition. Specifically, we utilized the multi-period excess earnings method to determine the fair value of the definite lived customer relationships acquired and the relief from royalty method to determine the fair value of the definite lived trade name acquired. Our determination of the fair value of the intangible assets acquired involved the use of significant estimates and assumptions related to revenue growth rates, discount rates, customer attrition rates, and royalty rates. Edgewell believes that the fair value assigned to the assets acquired and liabilities assumed are based on reasonable assumptions and estimates that marketplace participants would use. The following table provides the allocation of the purchase price related to the Acquisition based upon the fair value of assets and liabilities assumed: Current assets $ 17.0 Goodwill 181.2 Intangible assets 136.0 Other assets, including property, plant and equipment, net 3.2 Current liabilities (6.9) Deferred tax liabilities (21.1) $ 309.4 The acquired goodwill represented the value of expansion into new markets and channels of trade and is not deductible for tax purposes. The intangible assets acquired consisted primarily of the Billie trade name and customer relationships with a weighted average useful life of 19 years. All assets are included in the Company’s Wet Shave segment. |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Dec. 31, 2022 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | Restructuring Charges Operating Model Redesign In fiscal 2023, the Company is continuing to take actions to strengthen its operating model, simplify the organization and improve manufacturing and supply chain efficiency and productivity. As a result of these actions, we expect to incur restructuring charges of approximately $18 in fiscal 2023. The Company incurred restructuring charges as follows: Three Months Ended Three Months Ended Severance and related benefit costs $ 0.9 $ 1.3 Consulting, project implementation and management, and other exit costs 1.9 0.9 Total restructuring $ 2.8 $ 2.2 Pre-tax SG&A of $0.1 for the three months ended December 31, 2022, associated with certain information technology enablement expenses and compensation expenses for restructuring programs were included in Consulting, project implementation and management, and other exit costs. The following table summarizes the restructuring activities and related accrual for the three months ended December 31, 2022: Utilized October 1, 2022 Charge to Cash Non-Cash December 31, Severance and related benefit costs $ 1.7 $ 0.9 $ (2.2) $ — $ 0.4 Consulting, project implementation and management, and other exit costs 0.8 1.9 (1.9) — 0.8 Total restructuring $ 2.5 $ 2.8 $ (4.1) $ — $ 1.2 |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended December 31, 2022, the Company had income tax expense of $4.5 on Earnings before income taxes of $16.4. The effective tax rate for the three months ended December 31, 2022 was 27.1%. The difference between the federal statutory rate and the effective rate is primarily due to an unfavorable mix of earnings in higher tax rate jurisdictions. For the three months ended December 31, 2021, the Company had income tax expense of $5.0 on Earnings before income taxes of $16.2. The effective tax rate for the three months ended December 31, 2021 was 30.9%, respectively. The difference between the federal statutory rate and the effective rate for the three months ended December 31, 2021 is primarily due to the unfavorable mix of earnings in higher tax rate jurisdictions, as well as Internal Revenue Service Code Section 162(m) permanent adjustments and the non-deductible expenses related to the Acquisition. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 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”) and performance restricted share equivalent (“PRSE”) 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 2022 2021 Basic weighted-average shares outstanding 51.6 54.4 Effect of dilutive securities: RSE and PRSE awards 0.3 0.6 Total dilutive securities 0.3 0.6 Diluted weighted-average shares outstanding 51.9 55.0 For the three months ended December 31, 2022, the calculation of diluted weighted-average shares outstanding excludes 1.0 of share options and 0.6 of RSE and PRSE awards because the effect of including these awards was anti-dilutive. For the three months ended December 31, 2021, the calculation of diluted weighted-average shares outstanding excludes 1.2 of share options and 0.5 of RSE and PRSE awards because the effect of including these awards was anti-dilutive. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table sets forth goodwill by segment: Wet Sun and Skin Feminine Total Gross balance at October 1, 2022 $ 1,133.5 $ 354.5 $ 205.2 $ 1,693.2 Accumulated goodwill impairment (369.0) (2.0) — (371.0) Net balance at October 1, 2022 $ 764.5 $ 352.5 $ 205.2 $ 1,322.2 Changes in the three months ended December 31, 2022 Cumulative translation adjustment 8.0 1.2 0.9 10.1 Gross balance at December 31, 2022 $ 1,141.5 $ 355.7 $ 206.1 $ 1,703.3 Accumulated goodwill impairment (369.0) (2.0) — (371.0) Net balance at December 31, 2022 $ 772.5 $ 353.7 $ 206.1 $ 1,332.3 The following table sets forth intangible assets by class: December 31, 2022 September 30, 2022 Carrying Accumulated Net Carrying Accumulated Net Indefinite lived Trade names and brands $ 593.9 $ — $ 593.9 $ 587.1 $ — $ 587.1 Amortizable Trade names and brands $ 339.6 $ 76.4 $ 263.2 $ 339.4 $ 72.2 $ 267.2 Technology and patents 78.4 75.7 2.7 77.8 75.0 2.8 Customer related and other 269.7 132.7 137.0 267.1 127.6 139.5 Total amortizable intangible assets $ 687.7 $ 284.8 $ 402.9 $ 684.3 $ 274.8 $ 409.5 Amortization expense was $7.7 and $6.1 for the three months ended December 31, 2022 and 2021, respectively. Estimated amortization expense for amortizable intangible assets for the remainder of fiscal 2023 and for fiscal 2024, 2025, 2026, 2027 and 2028 is $23.0, $30.7, $30.6, $30.4, $30.4 and $30.3, respectively, and $227.5 thereafter. 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. 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. The Company determined there was no triggering event requiring an interim impairment analysis during the three months ended December 31, 2022. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 3 Months Ended |
Dec. 31, 2022 | |
Supplemental Balance Sheet Information [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information December 31, September 30, Inventories Raw materials and supplies $ 103.0 $ 80.4 Work in process 95.1 103.2 Finished products 342.1 265.7 Total inventories $ 540.2 $ 449.3 Other Current Assets Miscellaneous receivables $ 39.3 $ 39.6 Inventory returns receivable 1.1 1.1 Prepaid expenses 73.6 70.2 Value added tax collectible from customers 19.4 21.3 Income taxes receivable 20.5 19.3 Other 6.2 15.8 Total other current assets $ 160.1 $ 167.3 Property, Plant and Equipment Land $ 18.6 $ 18.0 Buildings 142.3 140.3 Machinery and equipment 1,086.9 1,050.0 Capitalized software costs 59.2 56.5 Construction in progress 39.4 47.0 Total gross property, plant and equipment 1,346.4 1,311.8 Accumulated depreciation and amortization (997.8) (966.3) Total property, plant and equipment, net $ 348.6 $ 345.5 Other Current Liabilities Accrued advertising, sales promotion and allowances $ 40.1 $ 34.9 Accrued trade allowances 29.2 31.4 Accrued salaries, vacations and incentive compensation 33.2 51.1 Income taxes payable 7.2 17.4 Returns reserve 30.4 47.5 Restructuring reserve 1.2 2.5 Value added tax payable 6.7 6.5 Deferred compensation 4.7 4.5 Short term lease obligation 8.8 8.8 Customer advance payments 1.0 1.1 Dividends payable 7.7 7.8 Other 60.9 78.2 Total other current liabilities $ 231.1 $ 291.7 Other Liabilities Pensions and other retirement benefits $ 57.8 $ 57.9 Deferred compensation 18.3 17.6 Long term lease obligation 41.6 41.5 Other non-current liabilities 58.4 56.6 Total other liabilities $ 176.1 $ 173.6 |
Leases
Leases | 3 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company leases certain offices and manufacturing facilities, warehouses, employee vehicles and certain manufacturing related equipment and determines if an arrangement is or contains a lease at inception. Leases may include options to extend or terminate the lease, and those options are recorded on the Condensed Consolidated Balance Sheet when it is reasonably certain that the Company will exercise one of those options. All recorded leases are classified as operating leases, and lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheet. A summary of the Company's lease information is as follows: December 31, September 30, Assets Classification Right of use assets Other assets $ 50.1 $ 50.1 Liabilities Current lease liabilities Other current liabilities $ 8.8 $ 8.8 Long-term lease liabilities Other liabilities 41.6 41.5 Total lease liabilities $ 50.4 $ 50.3 Other information Weighted-average remaining lease term (years) 10 10 Weighted-average incremental borrowing rate 6.6 % 6.6 % Three Months Ended 2022 2021 Statement of Earnings Lease cost (1) $ 3.0 $ 3.5 Other information Leased assets obtained in exchange for new lease liabilities 1.0 0.5 Cash paid for amounts included in the measurement of lease liabilities $ 3.0 $ 3.6 (1) Lease expense is included in Cost of products sold or SG&A expense based on the nature of the lease. Short-term lease expense is excluded from this amount and is not considered material. The Company's future lease payments, including reasonably assured renewal options under lease agreements, are as follows: Lease liability repayments December 31, 2022 Remainder of fiscal 2023 $ 8.4 2024 9.9 2025 9.1 2026 7.6 2027 5.8 2028 and thereafter 35.1 Total future minimum lease commitments 75.9 Less: Imputed interest (25.5) Present value of lease liabilities $ 50.4 |
Accounts Receivable Facility
Accounts Receivable Facility | 3 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Accounts receivable facility | Accounts Receivable Facility The Company participates in multiple accounts receivable purchase agreements both in the United States and Japan. These receivable agreements are between the Company and MUFG Bank, LTD, and the subsidiaries of both parties. Transfers under accounts receivable repurchase agreements 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 accounts receivable repurchase agreements 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 December 31, 2022, the discount rate used to determine the purchase price for the subject receivables shall be based upon Bloomberg Short Term Bank Yield Index plus a margin applicable to the specified obligor. Accounts receivables sold were $212.1 and $155.3 for the three months ended December 31, 2022 and 2021, respectively. The trade receivables sold that remained outstanding as of December 31, 2022 and September 30, 2022 were $85.4 and $78.7, respectively. The net proceeds received were included in both Cash used by operating activities and Cash used by investing activities on the Condensed Consolidated Statements 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, net in the Condensed Consolidated Statements of Earnings and Comprehensive Income. The loss on sale of trade receivables was $0.9 and $0.2 for the three months ended December 31, 2022 and 2021, respectively. |
Debt
Debt | 3 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt The detail of long-term debt was as follows: December 31, September 30, Senior notes, fixed interest rate of 5.500%, due 2028 $ 750.0 $ 750.0 Senior notes, fixed interest rate of 4.125%, due 2029 500.0 500.0 U.S. revolving credit facility (1) 255.0 155.0 Total long-term debt, including current maturities 1,505.0 1,405.0 Less unamortized debt issuance costs and discount (2) 13.0 13.6 Total long-term debt $ 1,492.0 $ 1,391.4 (1) The U.S. revolving credit facility matures in April 2025. (2) At December 31, 2022, the balance for the Senior Notes due 2028 and the Senior Notes due 2029 are reflected net of debt issuance costs of $8.0 and $5.0, respectively. At September 30, 2022, the balance for the Senior Notes due 2028 and the Senior Notes due 2029 are reflected net of debt issuance costs of $8.3 and $5.3, respectively. |
Retirement Plans
Retirement Plans | 3 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement PlansThe 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 compensation. The Company also sponsors or participates in several other non-U.S. pension and 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 (income) costs for these plans were as follows: Three Months Ended 2022 2021 Service cost $ 0.5 $ 1.0 Interest cost 5.2 2.6 Expected return on plan assets (5.4) (5.3) Recognized net actuarial loss 0.4 1.5 Net periodic cost (income) $ 0.7 $ (0.2) The service cost component of the net periodic cost (income) associated with the Company’s retirement plans is recorded to Cost of products sold and SG&A on the Condensed Consolidated Statement of Earnings and Comprehensive Income. The remaining net periodic cost (income) is recorded to Other income, net on the Condensed Consolidated Statement of Earnings and Comprehensive Income. |
Equity
Equity | 3 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Share Repurchases In January 2018, the Company’s Board of Directors (the “Board”) authorized the repurchase of up to 10.0 shares of the Company’s common stock, replacing the previous share repurchase authorization from May 2015. The Company repurchased 0.4 shares of its common stock for $15.0 during the three months ended December 31, 2022. There are 6.1 shares of common stock available for repurchase in the future under the Board’s authorization as of December 31, 2022. Any future share repurchases may be made in the open market, privately negotiated transactions, or otherwise, and in such amounts and at such times as the Company deems appropriate based upon prevailing market conditions, business needs, and other factors. Dividends Dividends declared during the three months ended December 31, 2022 totaled $8.0. Payments made for dividends during the three months ended December 31, 2022 totaled $8.3. On November 3, 2022, the Board declared a quarterly cash dividend of $0.15 per common share for the fourth fiscal quarter. The dividend was paid on January 4, 2023 to shareholders of record as of the close of business on November 29, 2022. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table presents the changes in accumulated other comprehensive loss (“AOCI”), net of tax, by component: Foreign Pension and Hedging Total Balance at October 1, 2022 $ (131.2) $ (92.6) $ 7.7 $ (216.1) OCI before reclassifications (1) 48.0 (0.5) (4.8) 42.7 Reclassifications to earnings — 0.3 (3.4) (3.1) Balance at December 31, 2022 $ (83.2) $ (92.8) $ (0.5) $ (176.5) Foreign Pension and Hedging Total Balance at October 1, 2021 $ (41.8) $ (97.3) $ 2.2 $ (136.9) OCI before reclassifications (1) (6.9) (1.1) 1.2 (6.8) Reclassifications to earnings — 1.1 (0.8) 0.3 Balance at December 31, 2021 $ (48.7) $ (97.3) $ 2.6 $ (143.4) (1) OCI is defined as other comprehensive income (loss). The following table presents the reclassifications out of AOCI: Three Months Ended Affected Line Item in the Details of AOCI Components 2022 2021 Gain / (Loss) on cash flow hedges Foreign exchange contracts $ 5.0 $ 1.3 Other income, net 1.6 0.5 Income tax provision 3.4 0.8 Amortization of defined benefit pension and postretirement items Actuarial losses $ (0.4) $ (1.5) (1) (0.1) (0.4) Income tax provision (0.3) (1.1) Total reclassifications for the period $ 3.1 $ (0.3) (1) These AOCI components are included in the computation of net periodic cost. See Note 11 of Notes to Condensed Consolidated Financial Statements. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 3 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Risk Management | Financial Instruments and Risk Management In the ordinary course of business, the Company may enter 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 in place at December 31, 2022 and September 30, 2022, 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 month. 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 income, net. The primary currency to which the Company’s foreign subsidiaries are exposed is the U.S. dollar. Cash Flow Hedges At December 31, 2022, the Company maintained a cash flow hedging program related to foreign currency risk. These derivative instruments have a high correlation to the underlying exposure being hedged and have been deemed highly effective by the Company for accounting purposes in offsetting the associated risk. The Company has forward currency contracts to hedge cash flow uncertainty associated with currency fluctuations. These transactions are accounted for as cash flow hedges. The Company had unrealized pre-tax losses of $0.7 and gains of $11.3 at December 31, 2022 and September 30, 2022, 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 December 31, 2022 levels over the next 12 months, the majority of the pre-tax gain included in AOCI at December 31, 2022 is expected to be included in Other income, net. Contract maturities for these hedges extend into fiscal 2023. At December 31, 2022, there were 64 open foreign currency contracts with a total notional value of $105.4. Derivatives not Designated as Hedges The Company has 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 expected to be subject to significant market risk. The change in the estimated fair value of the foreign currency contracts for the three months ended December 31, 2022 and 2021, resulted in a loss of $ 2.7 1.1 The following table provides estimated fair values of derivative instruments: Fair Value of Assets (1) December 31, September 30, Derivatives designated as cash flow hedging relationships: Foreign currency contracts $ (0.7) $ 11.3 Derivatives not designated as cash flow hedging relationships: Foreign currency contracts $ (2.7) $ 2.0 (1) All derivative assets are presented in Other current assets or Other assets. The following table provides the amounts of gains and losses on derivative instruments: Three Months Ended 2022 2021 Derivatives designated as cash flow hedging relationships: Foreign currency contracts Gain (loss) recognized in OCI (1) $ (7.1) $ 1.8 Gain reclassified from AOCI into income (1) (2) 4.9 1.3 Derivatives not designated as cash flow hedging relationships: Foreign currency contracts Gain (loss) recognized in income (2) $ (2.7) $ 1.1 (1) Each of these derivative instruments had a high correlation to the underlying exposure being hedged for the periods indicated and have been deemed highly effective by the Company in offsetting associated risk. (2) Gain (loss) was recorded in Other income, net. The following table provides financial assets and liabilities for balance sheet offsetting: At December 31, 2022 At September 30, 2022 Assets (1) Liabilities (2) Assets (1) Liabilities (2) Foreign currency contracts Gross amounts of recognized assets (liabilities) $ 2.0 $ (5.7) $ 13.4 $ (0.5) Gross amounts offset in the balance sheet (0.1) 0.4 — 0.4 Net amounts of assets (liabilities) presented in the balance sheet $ 1.9 $ (5.3) $ 13.4 $ (0.1) (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. 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. 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: December 31, September 30, Liabilities at estimated fair value: Deferred compensation $ (22.6) $ (21.8) Derivatives - foreign currency contracts (3.4) 13.3 Net liabilities at estimated fair value $ (26.0) $ (8.5) 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 December 31, 2022 and September 30, 2022, 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. At December 31, 2022 and September 30, 2022, the Company had no Level 1 financial assets or liabilities, other than pension plan assets, and no Level 3 financial assets or liabilities at December 31, 2022 and September 30, 2022, respectively. At December 31, 2022 and September 30, 2022, the fair market value of fixed rate long-term debt was $1,001.0 and $945.9, respectively, compared to its carrying value of $1,250.0 in each period. The estimated fair value of the long-term debt was estimated using yields obtained from independent pricing sources for similar types of borrowing arrangements. The estimated fair value of long-term debt, excluding the U.S. revolving credit facility due 2025 between the Company and Bank of America, N.A., as administrative agent, and lenders parties thereto (“Revolving Credit Facility”), has 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 Revolving Credit Facility, 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 Facility have been determined based on Level 2 inputs. |
Segment Data
Segment Data | 3 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Data | 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 deemed non-recurring in nature, including acquisition and integration costs, Sun Care reformulation costs, value-added tax settlement costs 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’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. Segment net sales and profitability are presented below: Three Months Ended 2022 2021 Net Sales Wet Shave $ 275.3 $ 286.1 Sun and Skin Care 112.9 104.8 Feminine Care 80.9 72.4 Total net sales $ 469.1 $ 463.3 Segment Profit Wet Shave $ 35.4 $ 51.5 Sun and Skin Care 13.1 3.7 Feminine Care 11.8 8.4 Total segment profit 60.3 63.6 General corporate and other expenses (15.9) (10.8) Restructuring and related costs (2.8) (2.2) Acquisition and integration costs (1) (2.1) (6.0) Sun Care reformulation costs (2) (0.5) (3.3) VAT settlement costs (3) — (3.4) Amortization of intangibles (7.7) (6.1) Interest and other expense, net (14.9) (15.6) Total earnings before income taxes $ 16.4 $ 16.2 (1) Includes pre-tax SG&A of $2.1 and $5.7 for the three months ended December 31, 2022 and 2021, respectively, for the Billie acquisition. Additionally, includes Cost of products sold of $0.3 related to the valuation of acquired inventory for the Billie acquisition for the three months ended December 31, 2021. (2) Includes pre-tax R&D of $0.5 for the three months ended December 31, 2022 and pre-tax COGS of $3.3 for the three months ended December 31, 2021, respectively, related to the reformulation, recall and destruction of certain Sun Care products. (3) Includes pre-tax SG&A of $3.4 for the three months ended December 31, 2021 related to the estimated settlement of prior years’ value-added tax audits in Germany. The following table presents the Company’s net sales by geographic area: Three Months Ended 2022 2021 Net Sales to Customers United States $ 271.8 $ 262.5 International 197.3 200.8 Total net sales $ 469.1 $ 463.3 Supplemental product information is presented below for net sales: Three Months Ended 2022 2021 Razors and blades $ 247.0 $ 255.7 Tampons, pads, and liners 80.9 72.4 Sun care products 47.8 40.2 Grooming products 47.3 46.3 Wipes and other skin care 17.8 18.3 Shaving gels and creams 28.3 30.4 Total net sales $ 469.1 $ 463.3 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventThe Company initiated the wind-up of Canada's Defined Benefit Pension in June 2021. On January 25, 2023, the Company received approval by the Financial Services Regulatory Authority of Ontario (“FSRA”) to wind-up the Company’s Canada Defined Benefit Plan. As a result of the termination and settlement of the Canada Defined Benefit Plan, the Company will recognize previously recorded accumulated other comprehensive loss and write off the pension assets of the Canada Defined Benefit Pension Plan. This will result in a non-cash settlement expense of approximately $8.0. |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements (Policies) | 3 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description 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, and feminine care categories. With operations in over 20 countries, our products are widely available in more than 50 countries. The Company conducts its business in the following three segments: • Wet Shave consists of products sold under the Schick®, Wilkinson Sword®, Edge, Skintimate®, Billie®, 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®, Bulldog® and Cremo® men’s grooming products, and Wet Ones® products. • Feminine Care includes tampons, pads, and liners sold under the Playtex Gentle Glide® and Sport®, Stayfree®, Carefree®, and o.b.® brands. |
Basis of Accounting, Policy | 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 statement 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 included in its Annual Report on Form 10-K filed with the SEC on November 16, 2022. |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table provides the allocation of the purchase price related to the Acquisition based upon the fair value of assets and liabilities assumed: Current assets $ 17.0 Goodwill 181.2 Intangible assets 136.0 Other assets, including property, plant and equipment, net 3.2 Current liabilities (6.9) Deferred tax liabilities (21.1) $ 309.4 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Restructuring Charges [Abstract] | |
Schedule of Charges Related to Restructuring Activities | Three Months Ended Three Months Ended Severance and related benefit costs $ 0.9 $ 1.3 Consulting, project implementation and management, and other exit costs 1.9 0.9 Total restructuring $ 2.8 $ 2.2 Pre-tax SG&A of $0.1 for the three months ended December 31, 2022, associated with certain information technology enablement expenses and compensation expenses for restructuring programs were included in Consulting, project implementation and management, and other exit costs. |
Schedule of Restructuring Activities and Related Accruals | The following table summarizes the restructuring activities and related accrual for the three months ended December 31, 2022: Utilized October 1, 2022 Charge to Cash Non-Cash December 31, Severance and related benefit costs $ 1.7 $ 0.9 $ (2.2) $ — $ 0.4 Consulting, project implementation and management, and other exit costs 0.8 1.9 (1.9) — 0.8 Total restructuring $ 2.5 $ 2.8 $ (4.1) $ — $ 1.2 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted-Average Shares Outstanding | 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 2022 2021 Basic weighted-average shares outstanding 51.6 54.4 Effect of dilutive securities: RSE and PRSE awards 0.3 0.6 Total dilutive securities 0.3 0.6 Diluted weighted-average shares outstanding 51.9 55.0 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table sets forth goodwill by segment: Wet Sun and Skin Feminine Total Gross balance at October 1, 2022 $ 1,133.5 $ 354.5 $ 205.2 $ 1,693.2 Accumulated goodwill impairment (369.0) (2.0) — (371.0) Net balance at October 1, 2022 $ 764.5 $ 352.5 $ 205.2 $ 1,322.2 Changes in the three months ended December 31, 2022 Cumulative translation adjustment 8.0 1.2 0.9 10.1 Gross balance at December 31, 2022 $ 1,141.5 $ 355.7 $ 206.1 $ 1,703.3 Accumulated goodwill impairment (369.0) (2.0) — (371.0) Net balance at December 31, 2022 $ 772.5 $ 353.7 $ 206.1 $ 1,332.3 |
Schedule of Amortizable Intangible Assets | The following table sets forth intangible assets by class: December 31, 2022 September 30, 2022 Carrying Accumulated Net Carrying Accumulated Net Indefinite lived Trade names and brands $ 593.9 $ — $ 593.9 $ 587.1 $ — $ 587.1 Amortizable Trade names and brands $ 339.6 $ 76.4 $ 263.2 $ 339.4 $ 72.2 $ 267.2 Technology and patents 78.4 75.7 2.7 77.8 75.0 2.8 Customer related and other 269.7 132.7 137.0 267.1 127.6 139.5 Total amortizable intangible assets $ 687.7 $ 284.8 $ 402.9 $ 684.3 $ 274.8 $ 409.5 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Supplemental Balance Sheet Information [Abstract] | |
Supplement Balance Sheet Information | December 31, September 30, Inventories Raw materials and supplies $ 103.0 $ 80.4 Work in process 95.1 103.2 Finished products 342.1 265.7 Total inventories $ 540.2 $ 449.3 Other Current Assets Miscellaneous receivables $ 39.3 $ 39.6 Inventory returns receivable 1.1 1.1 Prepaid expenses 73.6 70.2 Value added tax collectible from customers 19.4 21.3 Income taxes receivable 20.5 19.3 Other 6.2 15.8 Total other current assets $ 160.1 $ 167.3 Property, Plant and Equipment Land $ 18.6 $ 18.0 Buildings 142.3 140.3 Machinery and equipment 1,086.9 1,050.0 Capitalized software costs 59.2 56.5 Construction in progress 39.4 47.0 Total gross property, plant and equipment 1,346.4 1,311.8 Accumulated depreciation and amortization (997.8) (966.3) Total property, plant and equipment, net $ 348.6 $ 345.5 Other Current Liabilities Accrued advertising, sales promotion and allowances $ 40.1 $ 34.9 Accrued trade allowances 29.2 31.4 Accrued salaries, vacations and incentive compensation 33.2 51.1 Income taxes payable 7.2 17.4 Returns reserve 30.4 47.5 Restructuring reserve 1.2 2.5 Value added tax payable 6.7 6.5 Deferred compensation 4.7 4.5 Short term lease obligation 8.8 8.8 Customer advance payments 1.0 1.1 Dividends payable 7.7 7.8 Other 60.9 78.2 Total other current liabilities $ 231.1 $ 291.7 Other Liabilities Pensions and other retirement benefits $ 57.8 $ 57.9 Deferred compensation 18.3 17.6 Long term lease obligation 41.6 41.5 Other non-current liabilities 58.4 56.6 Total other liabilities $ 176.1 $ 173.6 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Summary of Lease Information | A summary of the Company's lease information is as follows: December 31, September 30, Assets Classification Right of use assets Other assets $ 50.1 $ 50.1 Liabilities Current lease liabilities Other current liabilities $ 8.8 $ 8.8 Long-term lease liabilities Other liabilities 41.6 41.5 Total lease liabilities $ 50.4 $ 50.3 Other information Weighted-average remaining lease term (years) 10 10 Weighted-average incremental borrowing rate 6.6 % 6.6 % Three Months Ended 2022 2021 Statement of Earnings Lease cost (1) $ 3.0 $ 3.5 Other information Leased assets obtained in exchange for new lease liabilities 1.0 0.5 Cash paid for amounts included in the measurement of lease liabilities $ 3.0 $ 3.6 |
Lessee, Operating Lease, Liability, Maturity | The Company's future lease payments, including reasonably assured renewal options under lease agreements, are as follows: Lease liability repayments December 31, 2022 Remainder of fiscal 2023 $ 8.4 2024 9.9 2025 9.1 2026 7.6 2027 5.8 2028 and thereafter 35.1 Total future minimum lease commitments 75.9 Less: Imputed interest (25.5) Present value of lease liabilities $ 50.4 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | The detail of long-term debt was as follows: December 31, September 30, Senior notes, fixed interest rate of 5.500%, due 2028 $ 750.0 $ 750.0 Senior notes, fixed interest rate of 4.125%, due 2029 500.0 500.0 U.S. revolving credit facility (1) 255.0 155.0 Total long-term debt, including current maturities 1,505.0 1,405.0 Less unamortized debt issuance costs and discount (2) 13.0 13.6 Total long-term debt $ 1,492.0 $ 1,391.4 (1) The U.S. revolving credit facility matures in April 2025. (2) At December 31, 2022, the balance for the Senior Notes due 2028 and the Senior Notes due 2029 are reflected net of debt issuance costs of $8.0 and $5.0, respectively. At September 30, 2022, the balance for the Senior Notes due 2028 and the Senior Notes due 2029 are reflected net of debt issuance costs of $8.3 and $5.3, respectively. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Pension and Postretirement Cost (Benefit) | The Company’s net periodic pension and postretirement (income) costs for these plans were as follows: Three Months Ended 2022 2021 Service cost $ 0.5 $ 1.0 Interest cost 5.2 2.6 Expected return on plan assets (5.4) (5.3) Recognized net actuarial loss 0.4 1.5 Net periodic cost (income) $ 0.7 $ (0.2) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss | The following table presents the changes in accumulated other comprehensive loss (“AOCI”), net of tax, by component: Foreign Pension and Hedging Total Balance at October 1, 2022 $ (131.2) $ (92.6) $ 7.7 $ (216.1) OCI before reclassifications (1) 48.0 (0.5) (4.8) 42.7 Reclassifications to earnings — 0.3 (3.4) (3.1) Balance at December 31, 2022 $ (83.2) $ (92.8) $ (0.5) $ (176.5) Foreign Pension and Hedging Total Balance at October 1, 2021 $ (41.8) $ (97.3) $ 2.2 $ (136.9) OCI before reclassifications (1) (6.9) (1.1) 1.2 (6.8) Reclassifications to earnings — 1.1 (0.8) 0.3 Balance at December 31, 2021 $ (48.7) $ (97.3) $ 2.6 $ (143.4) (1) OCI is defined as other comprehensive income (loss). |
Schedule of Reclassifications out of Accumulated Other Comprehensive Loss | The following table presents the reclassifications out of AOCI: Three Months Ended Affected Line Item in the Details of AOCI Components 2022 2021 Gain / (Loss) on cash flow hedges Foreign exchange contracts $ 5.0 $ 1.3 Other income, net 1.6 0.5 Income tax provision 3.4 0.8 Amortization of defined benefit pension and postretirement items Actuarial losses $ (0.4) $ (1.5) (1) (0.1) (0.4) Income tax provision (0.3) (1.1) Total reclassifications for the period $ 3.1 $ (0.3) (1) These AOCI components are included in the computation of net periodic cost. See Note 11 of Notes to Condensed Consolidated Financial Statements. |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Values of Derivative Instruments | The following table provides estimated fair values of derivative instruments: Fair Value of Assets (1) December 31, September 30, Derivatives designated as cash flow hedging relationships: Foreign currency contracts $ (0.7) $ 11.3 Derivatives not designated as cash flow hedging relationships: Foreign currency contracts $ (2.7) $ 2.0 (1) All derivative assets are presented in Other current assets or Other assets. |
Schedule of Gains and Losses on Derivative Instruments | The following table provides the amounts of gains and losses on derivative instruments: Three Months Ended 2022 2021 Derivatives designated as cash flow hedging relationships: Foreign currency contracts Gain (loss) recognized in OCI (1) $ (7.1) $ 1.8 Gain reclassified from AOCI into income (1) (2) 4.9 1.3 Derivatives not designated as cash flow hedging relationships: Foreign currency contracts Gain (loss) recognized in income (2) $ (2.7) $ 1.1 (1) Each of these derivative instruments had a high correlation to the underlying exposure being hedged for the periods indicated and have been deemed highly effective by the Company in offsetting associated risk. |
Schedule of Offsetting Assets and Liabilities | The following table provides financial assets and liabilities for balance sheet offsetting: At December 31, 2022 At September 30, 2022 Assets (1) Liabilities (2) Assets (1) Liabilities (2) Foreign currency contracts Gross amounts of recognized assets (liabilities) $ 2.0 $ (5.7) $ 13.4 $ (0.5) Gross amounts offset in the balance sheet (0.1) 0.4 — 0.4 Net amounts of assets (liabilities) presented in the balance sheet $ 1.9 $ (5.3) $ 13.4 $ (0.1) (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. |
Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis | The following table sets forth the Company’s financial assets and liabilities, which are carried at fair value and measured on a recurring basis during the period, all of which are classified as Level 2 within the fair value hierarchy: December 31, September 30, Liabilities at estimated fair value: Deferred compensation $ (22.6) $ (21.8) Derivatives - foreign currency contracts (3.4) 13.3 Net liabilities at estimated fair value $ (26.0) $ (8.5) |
Segment Data (Tables)
Segment Data (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Sales and Profitability | Segment net sales and profitability are presented below: Three Months Ended 2022 2021 Net Sales Wet Shave $ 275.3 $ 286.1 Sun and Skin Care 112.9 104.8 Feminine Care 80.9 72.4 Total net sales $ 469.1 $ 463.3 Segment Profit Wet Shave $ 35.4 $ 51.5 Sun and Skin Care 13.1 3.7 Feminine Care 11.8 8.4 Total segment profit 60.3 63.6 General corporate and other expenses (15.9) (10.8) Restructuring and related costs (2.8) (2.2) Acquisition and integration costs (1) (2.1) (6.0) Sun Care reformulation costs (2) (0.5) (3.3) VAT settlement costs (3) — (3.4) Amortization of intangibles (7.7) (6.1) Interest and other expense, net (14.9) (15.6) Total earnings before income taxes $ 16.4 $ 16.2 (1) Includes pre-tax SG&A of $2.1 and $5.7 for the three months ended December 31, 2022 and 2021, respectively, for the Billie acquisition. Additionally, includes Cost of products sold of $0.3 related to the valuation of acquired inventory for the Billie acquisition for the three months ended December 31, 2021. (2) Includes pre-tax R&D of $0.5 for the three months ended December 31, 2022 and pre-tax COGS of $3.3 for the three months ended December 31, 2021, respectively, related to the reformulation, recall and destruction of certain Sun Care products. (3) Includes pre-tax SG&A of $3.4 for the three months ended December 31, 2021 related to the estimated settlement of prior years’ value-added tax audits in Germany. |
Schedule of Sales by Geographic Area | The following table presents the Company’s net sales by geographic area: Three Months Ended 2022 2021 Net Sales to Customers United States $ 271.8 $ 262.5 International 197.3 200.8 Total net sales $ 469.1 $ 463.3 |
Schedule of Supplemental Product Information | Supplemental product information is presented below for net sales: Three Months Ended 2022 2021 Razors and blades $ 247.0 $ 255.7 Tampons, pads, and liners 80.9 72.4 Sun care products 47.8 40.2 Grooming products 47.3 46.3 Wipes and other skin care 17.8 18.3 Shaving gels and creams 28.3 30.4 Total net sales $ 469.1 $ 463.3 |
Background and Basis of Prese_2
Background and Basis of Presentation (Details) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 USD ($) country | Dec. 31, 2021 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of countries in which Edgewell operates | country | 20 | |
Number of countries with retail operations | country | 50 | |
Repayments of Revolving Credit Facility | $ | $ 141 | $ 93 |
Restatement Adjustment | ||
Repayments of Revolving Credit Facility | $ | $ (93) |
Business Combinations (Schedule
Business Combinations (Schedule of Recognized Identified Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 | Nov. 29, 2021 |
Business Acquisition [Line Items] | |||
Goodwill acquired | $ 1,332.3 | $ 1,322.2 | |
Billie | |||
Business Acquisition [Line Items] | |||
Current assets acquired | $ 17 | ||
Goodwill acquired | 181.2 | ||
Business combinations, intangible assets acquired | 136 | ||
Property, plant and equipment acquired | 3.2 | ||
Current liabilities assumed | (6.9) | ||
Deferred tax liabilities acquired | (21.1) | ||
Business combinations, assets acquired, goodwill and liabilities assumed, net | $ 309.4 |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Nov. 29, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||
Acquisition of Billie, net of cash acquired | $ 309.4 | $ 0 | $ 308.8 |
Billie | |||
Business Acquisition [Line Items] | |||
Acquisition close date | Nov. 29, 2021 | ||
Weighted average useful life of acquired intangible assets | 19 years |
Restructuring Charges (Schedule
Restructuring Charges (Schedule of Charges Related to Restructuring Activities) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||
Severance Costs | $ 0.9 | $ 1.3 |
Other Restructuring Costs | 1.9 | 0.9 |
Restructuring and related costs | 2.8 | $ 2.2 |
IT enablement | Selling, general and administrative expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related costs | $ 0.1 |
Restructuring Charges (Schedu_2
Restructuring Charges (Schedule of Restructuring Activities and Related Accruals) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | $ 2.5 | |
Restructuring and related costs | 2.8 | $ 2.2 |
Utilized - Cash Payments | (4.1) | |
Utilized - Non-Cash | 0 | |
Ending Balance | 1.2 | |
Employee Severance [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 1.7 | |
Restructuring and related costs | 0.9 | |
Utilized - Cash Payments | (2.2) | |
Utilized - Non-Cash | 0 | |
Ending Balance | 0.4 | |
Other Restructuring [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 0.8 | |
Restructuring and related costs | 1.9 | |
Utilized - Cash Payments | (1.9) | |
Utilized - Non-Cash | 0 | |
Ending Balance | $ 0.8 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision | $ 4.5 | $ 5 |
Earnings before income taxes | $ 16.4 | $ 16.2 |
Effective tax rate | 27.10% | 30.90% |
Earnings per Share (Schedule of
Earnings per Share (Schedule of Weighted-Average Shares Outstanding) (Details) - shares shares in Millions | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Weighted Average Number Of Shares [Line Items] | ||
Basic weighted-average shares outstanding (in shares) | 51.6 | 54.4 |
Effect of dilutive securities (in shares) | 0.3 | 0.6 |
Diluted weighted-average shares outstanding (in shares) | 51.9 | 55 |
RSE and PRSE awards | ||
Schedule Of Weighted Average Number Of Shares [Line Items] | ||
Effect of dilutive securities (in shares) | 0.3 | 0.6 |
Share options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive awards excluded from the calculation of diluted weighted-average shares outstanding (in shares) | 1 | 1.2 |
RSE and PRSE awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive awards excluded from the calculation of diluted weighted-average shares outstanding (in shares) | 0.6 | 0.5 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Schedule of Goodwill) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Sep. 30, 2022 | |
Goodwill [Line Items] | ||
Goodwill, Gross | $ 1,703.3 | $ 1,693.2 |
Accumulated goodwill impairment loss | 371 | 371 |
Goodwill [Roll Forward] | ||
Beginning balance | 1,322.2 | |
Cumulative translation adjustment | (10.1) | |
Ending balance | 1,332.3 | |
Wet Shave | ||
Goodwill [Line Items] | ||
Goodwill, Gross | 1,141.5 | 1,133.5 |
Accumulated goodwill impairment loss | 369 | 369 |
Goodwill [Roll Forward] | ||
Beginning balance | 764.5 | |
Cumulative translation adjustment | (8) | |
Ending balance | 772.5 | |
Sun and Skin Care | ||
Goodwill [Line Items] | ||
Goodwill, Gross | 355.7 | 354.5 |
Accumulated goodwill impairment loss | 2 | 2 |
Goodwill [Roll Forward] | ||
Beginning balance | 352.5 | |
Cumulative translation adjustment | (1.2) | |
Ending balance | 353.7 | |
Feminine Care | ||
Goodwill [Line Items] | ||
Goodwill, Gross | 206.1 | 205.2 |
Accumulated goodwill impairment loss | 0 | $ 0 |
Goodwill [Roll Forward] | ||
Beginning balance | 205.2 | |
Cumulative translation adjustment | (0.9) | |
Ending balance | $ 206.1 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Schedule of Amortizable Intangible Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, gross carrying amount | $ 687.7 | $ 684.3 | |
Amortizable intangible assets, accumulated amortization | 284.8 | 274.8 | |
Amortizable intangible assets, net | 402.9 | 409.5 | |
Amortization of intangibles | 7.7 | $ 6.1 | |
Amortizable intangible assets, amortization expense, remainder of 2023 | 23 | ||
Amortizable intangible assets, amortization expense, fiscal 2024 | 30.7 | ||
Amortizable intangible assets, amortization expense, fiscal 2025 | 30.6 | ||
Amortizable intangible assets, amortization expense, fiscal 2026 | 30.4 | ||
Amortizable intangible assets, amortization expense, fiscal 2027 | 30.4 | ||
Amortizable intangible assets, amortization expense, fiscal 2028 | 30.3 | ||
Amortizable intangible assets, amortization expense, after fiscal 2028 | 227.5 | ||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 593.9 | 587.1 | |
Trade names and brands | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, gross carrying amount | 339.6 | 339.4 | |
Amortizable intangible assets, accumulated amortization | 76.4 | 72.2 | |
Amortizable intangible assets, net | 263.2 | 267.2 | |
Technology and patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, gross carrying amount | 78.4 | 77.8 | |
Amortizable intangible assets, accumulated amortization | 75.7 | 75 | |
Amortizable intangible assets, net | 2.7 | 2.8 | |
Customer related and other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, gross carrying amount | 269.7 | 267.1 | |
Amortizable intangible assets, accumulated amortization | 132.7 | 127.6 | |
Amortizable intangible assets, net | $ 137 | $ 139.5 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 |
Inventories | ||
Raw materials and supplies | $ 103 | $ 80.4 |
Work in process | 95.1 | 103.2 |
Finished products | 342.1 | 265.7 |
Total inventories | 540.2 | 449.3 |
Other Current Assets | ||
Miscellaneous receivables | 39.3 | 39.6 |
Inventory returns receivable | 1.1 | 1.1 |
Prepaid expenses | 73.6 | 70.2 |
Value added tax collectible from customers | 19.4 | 21.3 |
Income taxes receivable | 20.5 | 19.3 |
Other | 6.2 | 15.8 |
Total other current assets | 160.1 | 167.3 |
Property, Plant and Equipment | ||
Land | 18.6 | 18 |
Buildings | 142.3 | 140.3 |
Machinery and equipment | 1,086.9 | 1,050 |
Capitalized software costs | 59.2 | 56.5 |
Construction in progress | 39.4 | 47 |
Total gross property, plant and equipment | 1,346.4 | 1,311.8 |
Accumulated depreciation and amortization | (997.8) | (966.3) |
Total property, plant and equipment, net | 348.6 | 345.5 |
Other Current Liabilities | ||
Accrued advertising, sales promotion and allowances | 40.1 | 34.9 |
Accrued trade allowances | 29.2 | 31.4 |
Accrued salaries, vacations and incentive compensation | 33.2 | 51.1 |
Income taxes payable | 7.2 | 17.4 |
Returns reserve | 30.4 | 47.5 |
Restructuring reserve | 1.2 | 2.5 |
Value added tax payable | 6.7 | 6.5 |
Deferred compensation | 4.7 | 4.5 |
Short term lease obligation | 8.8 | 8.8 |
Customer advance payments | 1 | 1.1 |
Dividends payable | 7.7 | 7.8 |
Other | 60.9 | 78.2 |
Total other current liabilities | 231.1 | 291.7 |
Other Liabilities | ||
Pensions and other retirement benefits | 57.8 | 57.9 |
Deferred compensation | 18.3 | 17.6 |
Noncurrent lease obligation | 41.6 | 41.5 |
Other non-current liabilities | 58.4 | 56.6 |
Total other liabilities | $ 176.1 | $ 173.6 |
Leases (Summary of Lease Inform
Leases (Summary of Lease Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | ||
Leases [Abstract] | ||||
Operating lease, right-of-use asset | $ 50.1 | $ 50.1 | ||
Short term lease obligation | 8.8 | 8.8 | ||
Noncurrent lease obligation | 41.6 | 41.5 | ||
Total lease obligation | $ 50.4 | $ 50.3 | ||
Operating lease, weighted average remaining lease term | 10 years | 10 years | ||
Operating lease, weighted average discount rate, percent | 6.60% | 6.60% | ||
Operating lease, expense | $ 3 | [1] | $ 3.5 | |
Right-of-use asset obtained in exchange for operating lease liability | 1 | 0.5 | ||
Operating lease, payments | $ 3 | $ 3.6 | ||
[1]Lease expense is included in Cost of products sold or SG&A expense based on the nature of the lease. Short-term lease expense is excluded from this amount and is not considered material. |
Leases (Operating Lease Payment
Leases (Operating Lease Payment Schedule) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 |
Leases [Abstract] | ||
Lessee, operating lease, payment due current year | $ 8.4 | |
Lessee, operating lease, payment due year two | 9.9 | |
Lessee, operating lease, payment due year three | 9.1 | |
Lessee, operating lease, payment due year four | 7.6 | |
Lessee, operating lease, payment due year five | 5.8 | |
Lessee, operating lease, payment due after year five | 35.1 | |
Lessee, operating lease, payments due | 75.9 | |
Lessee, operating lease, undiscounted excess amount | 25.5 | |
Total lease obligation | $ 50.4 | $ 50.3 |
Operating lease, weighted average remaining lease term | 10 years | 10 years |
Accounts Receivable Facility (N
Accounts Receivable Facility (Narrative) (Details) - Accounts receivable sales agreement - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | |
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Accounts receivable sold through AR Facility | $ 212.1 | $ 155.3 | |
Transfer of accounts receivable, sales amount derecognized | 85.4 | $ 78.7 | |
Loss on sale of accounts receivable | $ 0.9 | $ 0.2 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 | |
Debt Instrument [Line Items] | |||
Total long-term debt, including current maturities | $ 1,505 | $ 1,405 | |
Long-term debt | 1,492 | 1,391.4 | |
Notes payable | 25.2 | 19 | |
Unamortized debt issuance costs | 13 | [1] | 13.6 |
Senior notes | Senior Notes, Due 2028 | |||
Debt Instrument [Line Items] | |||
Total long-term debt, including current maturities | 750 | 750 | |
Unamortized debt issuance costs | 8 | 8.3 | |
Senior notes | Senior Notes, Due 2029 | |||
Debt Instrument [Line Items] | |||
Total long-term debt, including current maturities | 500 | 500 | |
Unamortized debt issuance costs | 5 | 5.3 | |
Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Total long-term debt, including current maturities | $ 255 | [2] | $ 155 |
[1]At December 31, 2022, the balance for the Senior Notes due 2028 and the Senior Notes due 2029 are reflected net of debt issuance costs of $8.0 and $5.0, respectively. At September 30, 2022, the balance for the Senior Notes due 2028 and the Senior Notes due 2029 are reflected net of debt issuance costs of $8.3 and $5.3, respectively.[2]The U.S. revolving credit facility matures in April 2025. |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 0.5 | $ 1 |
Interest cost | 5.2 | 2.6 |
Expected return on plan assets | (5.4) | (5.3) |
Recognized net actuarial loss | 0.4 | 1.5 |
Net periodic cost (income) | $ 0.7 | $ (0.2) |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |||
Feb. 03, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 26, 2018 | |
Equity [Abstract] | ||||
Share repurchase authorization | 10 | |||
Treasury shares repurchased (in shares) | 0.4 | |||
Treasury shares repurchased (in usd) | $ 15 | $ 24.5 | ||
Share repurchase authorization, remaining | 6.1 | |||
Dividends declared | $ 8 | |||
Dividends to common shareholders | $ 8.3 | $ 8.5 | ||
Dividends declared (per share) | $ 0.15 | $ 0.15 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ (216.1) | $ (136.9) | |
OCI before reclassifications | [1] | 42.7 | (6.8) |
Reclassifications to earnings | (3.1) | 0.3 | |
Ending balance | (176.5) | (143.4) | |
Foreign Currency Translation Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (131.2) | (41.8) | |
OCI before reclassifications | [1] | 48 | (6.9) |
Reclassifications to earnings | 0 | 0 | |
Ending balance | (83.2) | (48.7) | |
Pension and Post-retirement Activity | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (92.6) | (97.3) | |
OCI before reclassifications | [1] | (0.5) | (1.1) |
Reclassifications to earnings | 0.3 | 1.1 | |
Ending balance | (92.8) | (97.3) | |
Hedging Activity | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 7.7 | 2.2 | |
OCI before reclassifications | [1] | (4.8) | 1.2 |
Reclassifications to earnings | (3.4) | (0.8) | |
Ending balance | $ (0.5) | $ 2.6 | |
[1]OCI is defined as other comprehensive income (loss). |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Schedule of Reclassifications out of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications to earnings | $ 3.1 | $ (0.3) | |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
OCI Cash flow hedges reclass to earnings, before tax | 5 | 1.3 | |
OCI Cash flow hedge, reclassification to earnings, tax | 1.6 | 0.5 | |
Other comprehensive income, reclassification to earnings, cash flow hedges, after tax | 3.4 | 0.8 | |
Amortization of defined benefit pension and postretirement items, actuarial losses, before tax | [1] | (0.4) | (1.5) |
Amortization of defined benefit pension and postretirement items, tax | (0.1) | (0.4) | |
Amortization of defined benefit pension and postretirement items, after tax | (0.3) | (1.1) | |
Reclassifications to earnings | $ 3.1 | $ (0.3) | |
[1]These AOCI components are included in the computation of net periodic cost. See Note 11 of Notes to Condensed Consolidated Financial Statements. |
Financial Instruments and Ris_3
Financial Instruments and Risk Management (Narrative) (Details) $ in Millions | 3 Months Ended | |||
Dec. 31, 2022 USD ($) contracts | Dec. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) | ||
Derivative [Line Items] | ||||
Long-term debt | $ 1,505 | $ 1,405 | ||
Fixed rate | ||||
Derivative [Line Items] | ||||
Long-term debt | 1,250 | 1,250 | ||
Fair value of long-term debt | $ 1,001 | 945.9 | ||
Not designated as hedge | FX contract | ||||
Derivative [Line Items] | ||||
Open foreign currency contracts | contracts | 7 | |||
Derivative, notional amount | $ 65.9 | |||
Gain (loss) recognized in income | [1] | (2.7) | $ 1.1 | |
Cash flow hedge | Designated as hedge | FX contract | ||||
Derivative [Line Items] | ||||
Estimated fair value of derivative | $ (0.7) | $ 11.3 | ||
Open foreign currency contracts | contracts | 64 | |||
Derivative, notional amount | $ 105.4 | |||
[1]Gain (loss) was recorded in Other income, net. |
Financial Instruments and Ris_4
Financial Instruments and Risk Management (Schedule of Fair Values of Derivative Instruments) (Details) - FX contract - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 | |
Not designated as hedge | |||
Derivatives, Fair Value [Line Items] | |||
Estimated fair value of derivatives | [1] | $ (2.7) | $ 2 |
Cash flow hedge | Designated as hedge | |||
Derivatives, Fair Value [Line Items] | |||
Estimated fair value of derivatives | [1] | $ (0.7) | $ 11.3 |
[1]All derivative assets are presented in Other current assets or Other assets. |
Financial Instruments and Ris_5
Financial Instruments and Risk Management (Schedule of Gains and Losses on Derivative Instruments) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Nonoperating Income (Expense) | Nonoperating Income (Expense) | |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Nonoperating Income (Expense) | Nonoperating Income (Expense) | |
FX contract | Designated as hedge | Cash flow hedge | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in OCI | [1] | $ (7.1) | $ 1.8 |
Gain (loss) reclassified from AOCI into income (effective portion) | [1],[2] | 4.9 | 1.3 |
FX contract | Not designated as hedge | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in income | [2] | $ 2.7 | $ (1.1) |
[1]Each of these derivative instruments had a high correlation to the underlying exposure being hedged for the periods indicated and have been deemed highly effective by the Company in offsetting associated risk.[2]Gain (loss) was recorded in Other income, net. |
Financial Instruments and Ris_6
Financial Instruments and Risk Management (Schedule of Offsetting Assets and Liabilities) (Details) - FX contract - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 | |
Derivative [Line Items] | |||
Gross amounts of recognized assets | [1] | $ 2 | $ 13.4 |
Gross amounts of recognized liabilities | [2] | (5.7) | (0.5) |
Gross amounts offset in the balance sheet | [1] | (0.1) | 0 |
Gross amounts offset in the balance sheet | [2] | 0.4 | 0.4 |
Net amounts of assets presented in the balance sheet | [1] | 1.9 | 13.4 |
Net amounts of liabilities presented in the balance sheet | [2] | $ (5.3) | $ (0.1) |
[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. |
Financial Instruments and Ris_7
Financial Instruments and Risk Management (Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis) (Details) - Recurring fair value measurement - Level 2 - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 |
Derivative [Line Items] | ||
Deferred compensation | $ (22.6) | $ (21.8) |
Derivatives - foreign currency contracts | (3.4) | 13.3 |
Net liabilities at estimated fair value | $ (26) | $ (8.5) |
Segment Data (Schedule of Segme
Segment Data (Schedule of Segment Sales and Profitability) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 469.1 | $ 463.3 | ||
Segment profit | 31.3 | 31.8 | ||
Restructuring and related costs | 2.8 | 2.2 | ||
Acquisition and integration costs | [1] | 2.1 | 6 | |
Sun Care reformulation costs | 0.5 | 3.3 | [2] | |
VAT settlement costs | [3] | 0 | (3.4) | |
Amortization of intangibles | 7.7 | 6.1 | ||
Interest and other expense, net | 14.9 | 15.6 | ||
Earnings before income taxes | 16.4 | 16.2 | ||
Wet Shave | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 275.3 | 286.1 | ||
Segment profit | 35.4 | 51.5 | ||
Sun and Skin Care | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 112.9 | 104.8 | ||
Segment profit | 13.1 | 3.7 | ||
Feminine Care | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 80.9 | 72.4 | ||
Segment profit | 11.8 | 8.4 | ||
Total Segments | ||||
Segment Reporting Information [Line Items] | ||||
Segment profit | 60.3 | 63.6 | ||
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
General corporate and other expenses | 15.9 | 10.8 | ||
Selling, general and administrative expenses | Billie | ||||
Segment Reporting Information [Line Items] | ||||
Acquisition and integration costs | $ 2.1 | 5.7 | ||
Cost of products sold | Billie | ||||
Segment Reporting Information [Line Items] | ||||
Acquisition and integration costs | $ 0.3 | |||
[1]Includes pre-tax SG&A of $2.1 and $5.7 for the three months ended December 31, 2022 and 2021, respectively, for the Billie acquisition. Additionally, includes Cost of products sold of $0.3 related to the valuation of acquired inventory for the Billie acquisition for the three months ended December 31, 2021.[2]Includes pre-tax R&D of $0.5 for the three months ended December 31, 2022 and pre-tax COGS of $3.3 for the three months ended December 31, 2021, respectively, related to the reformulation, recall and destruction of certain Sun Care products.[3]Includes pre-tax SG&A of $3.4 for the three months ended December 31, 2021 related to the estimated settlement of prior years’ value-added tax audits in Germany. |
Segment Data Segment Data (Sche
Segment Data Segment Data (Schedule of Sales by Geographical Area) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from External Customer [Line Items] | ||
Net sales | $ 469.1 | $ 463.3 |
United States | ||
Revenue from External Customer [Line Items] | ||
Net sales | 271.8 | 262.5 |
International | ||
Revenue from External Customer [Line Items] | ||
Net sales | $ 197.3 | $ 200.8 |
Segment Data (Schedule of Suppl
Segment Data (Schedule of Supplemental Product Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from External Customer [Line Items] | ||
Net sales | $ 469.1 | $ 463.3 |
Razors and blades | ||
Revenue from External Customer [Line Items] | ||
Net sales | 247 | 255.7 |
Tampons, pads and liners | ||
Revenue from External Customer [Line Items] | ||
Net sales | 80.9 | 72.4 |
Sun care products | ||
Revenue from External Customer [Line Items] | ||
Net sales | 47.8 | 40.2 |
Grooming products | ||
Revenue from External Customer [Line Items] | ||
Net sales | 47.3 | 46.3 |
Wipes and other skin care products | ||
Revenue from External Customer [Line Items] | ||
Net sales | 17.8 | 18.3 |
Shaving gels and creams | ||
Revenue from External Customer [Line Items] | ||
Net sales | $ 28.3 | $ 30.4 |