Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Nov. 10, 2020 | Mar. 31, 2020 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-36837 | ||
Entity Registrant Name | ENERGIZER HOLDINGS, INC. | ||
Entity Central Index Key | 0001632790 | ||
Current Fiscal Year End Date | --09-30 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | MO | ||
Entity Tax Identification Number | 36-4802442 | ||
Entity Address, Address Line One | 533 Maryville University Drive | ||
Entity Address, City or Town | St. Louis, | ||
Entity Address, State or Province | MO | ||
Entity Address, Postal Zip Code | 63141 | ||
City Area Code | (314) | ||
Local Phone Number | 985-2000 | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,070,832,297 | ||
Entity Common Stock, Shares Outstanding | 68,518,729 | ||
Documents Incorporated by Reference | Portions of Energizer Holdings, Inc. Notice of Annual Meeting and Proxy Statement (“Proxy Statement”) for our Annual Meeting of Shareholders which will be held February 1, 2021 have been incorporated into Part III of this Annual Report on Form 10-K. The Proxy Statement will be filed within 120 days of the end of the fiscal year ended September 30, 2020. | ||
Common Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, par value $.01 per share | ||
Trading Symbol | ENR | ||
Security Exchange Name | NYSE | ||
Convertible Preferred Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Series A Mandatory Convertible Preferred Stock, par value $.01 per share | ||
Trading Symbol | ENR PRA | ||
Security Exchange Name | NYSE |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | |||
Net sales | $ 2,744.8 | $ 2,494.5 | $ 1,797.7 |
Cost of products sold | 1,662.9 | 1,490.7 | 966.8 |
Gross profit | 1,081.9 | 1,003.8 | 830.9 |
Selling, general and administrative expense | 483.3 | 515.7 | 421.7 |
Advertising and sales promotion expense | 147.1 | 127.3 | 112.9 |
Research and development expense | 35.4 | 32.8 | 22.4 |
Amortization of intangible assets | 56.5 | 43.2 | 11.5 |
Gain on sale of real estate | 0 | 0 | (4.6) |
Interest expense | 195 | 226 | 98.4 |
Loss on extinguishment of debt | 94.9 | 0 | 0 |
Other items, net | 2 | (14.3) | (6.6) |
Earnings before income taxes | 67.7 | 73.1 | 175.2 |
Income tax provision | 20.9 | 8.4 | 81.7 |
Net earnings from continuing operations | 46.8 | 64.7 | 93.5 |
Net loss from discontinued operations, net of income tax benefit of $1.2 in 2020 and income tax expense of $4.0 in 2019 | (140.1) | (13.6) | 0 |
Net (loss) / earnings | (93.3) | 51.1 | 93.5 |
Mandatory preferred stock dividends | (16.2) | (12) | 0 |
Net (loss) / earnings attributable to common shareholders | $ (109.5) | $ 39.1 | $ 93.5 |
Earnings Per Share | |||
Basic net earnings per common share - continuing operations (in dollars per share) | $ 0.44 | $ 0.79 | $ 1.56 |
Basic net loss per common share - discontinued operations (in dollars per share) | (2.03) | (0.20) | 0 |
Basic net earnings per common share (in dollars per share) | (1.59) | 0.59 | 1.56 |
Diluted net earnings per common share - continuing operations (in dollars per share) | 0.44 | 0.78 | 1.52 |
Diluted net loss per common share - discontinued operations (in dollars per share) | (2.02) | (0.20) | 0 |
Diluted net earnings per common share (in dollars per share) | $ (1.58) | $ 0.58 | $ 1.52 |
Weighted average shares of common stock - Basic (in shares) | 68.8 | 66.4 | 59.8 |
Weighted average shares of common stock- Diluted (in shares) | 69.5 | 67.3 | 61.4 |
Dividend Per Common Share (in dollars per share) | $ 1.20 | $ 1.20 | $ 1.16 |
Statement of Comprehensive Income | |||
Net earnings from continuing operations | $ (93.3) | $ 51.1 | $ 93.5 |
Other comprehensive (loss)/income, net of tax (benefit)/expense | |||
Foreign currency translation adjustments | (13.4) | (10.4) | (20.5) |
Pension activity, net of tax of $3.5 in 2020, ($12.1) in 2019, and $6.3 in 2018 | 9.8 | (36.9) | 22.9 |
Deferred (loss)/gain on hedging activity, net of tax of ($1.5) in 2020, ($3.1) in 2019, and $4.4 in 2018 | (5.8) | (9.2) | 15 |
Total comprehensive (loss)/income | $ (102.7) | $ (5.4) | $ 110.9 |
CONSOLIDATED STATEMENTS OF EA_2
CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | |||
Income tax expense, discontinued operations | $ 1.2 | $ 4 | |
Pension activity, tax | 3.5 | (12.1) | $ 6.3 |
Deferred (loss)/gain on hedging activity, net of tax of ($1.5) in 2020, ($3.1) in 2019, and $4.4 in 2018 | $ (1.5) | $ (3.1) | $ 4.4 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Current assets | ||
Cash and cash equivalents | $ 459.8 | $ 258.5 |
Restricted cash | 790 | 0 |
Trade receivables, net | 292 | 340.2 |
Inventories | 511.3 | 469.3 |
Other current assets | 157.8 | 177.1 |
Assets held for sale | 0 | 791.7 |
Total current assets | 2,210.9 | 2,036.8 |
Restricted cash | 0 | |
Property, plant and equipment, net | 352.1 | 362 |
Operating lease assets | 121.9 | 0 |
Goodwill | 1,016 | 1,004.8 |
Other intangible assets, net | 1,909 | 1,958.9 |
Deferred tax asset | 24.3 | 22.8 |
Other assets | 94.1 | 64.3 |
Total assets | 5,728.3 | 5,449.6 |
Current liabilities | ||
Current maturities of long-term debt | 841.3 | 0 |
Current portion of capital leases | 1.7 | 1.6 |
Notes payable | 3.8 | 31.9 |
Accounts payable | 378.1 | 299 |
Current operating lease liabilities | 14.8 | 0 |
Other current liabilities | 408.7 | 333.6 |
Liabilities held for sale | 0 | 402.9 |
Total current liabilities | 1,648.4 | 1,069 |
Long-term debt | 3,306.9 | 3,461.6 |
Operating lease liabilities | 111.9 | 0 |
Deferred tax liability | 140.4 | 170.6 |
Other non-current liabilities | 211.6 | 204.6 |
Total liabilities | 5,419.2 | 4,905.8 |
Shareholders' equity | ||
Common stock, $0.01 par value, 72,386,840 and 62,420,421 shares issued at 2019 and 2018, respectively | 0.7 | 0.7 |
Mandatory convertible preferred stock, $0.01 par value, 2,156,250 shares issued at 2019 | 0 | 0 |
Additional paid-in capital | 859.2 | 870.3 |
Retained earnings | (66.2) | 129.5 |
Common stock in treasury, at cost | (176.9) | (158.4) |
Accumulated other comprehensive loss | (307.7) | (298.3) |
Total shareholders' equity | 309.1 | 543.8 |
Total liabilities and shareholders' equity | $ 5,728.3 | $ 5,449.6 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2020 | Sep. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock issued (in shares) | 72,386,840 | 72,386,840 |
Treasury shares (in shares) | 3,868,438 | 3,484,807 |
Mandatory convertible preferred stock (in dollars per share) | $ 0.01 | |
Mandatory convertible preferred stock (in shares) | 2,156,250 | 2,156,250 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Cash Flow from Operating Activities | |||
Net (loss) / earnings | $ (93.3) | $ 51.1 | $ 93.5 |
Loss from discontinued operations, net of tax | (140.1) | (13.6) | 0 |
Net earnings form continuing operations | 46.8 | 64.7 | 93.5 |
Adjustments to reconcile net earnings to net cash flow from operations: | |||
Non-cash integration and restructuring charges | 17.8 | 3 | 0 |
Depreciation and amortization | 111.9 | 92.8 | 45.1 |
Deferred income taxes | (34.8) | (33.3) | 1.8 |
Share based compensation expense | 24.5 | 27.1 | 28.2 |
Loss on extinguishment of debt | 94.9 | 0 | 0 |
Gain on sale of real estate | 0 | 0 | (4.6) |
Mandatory transition tax | 0 | (0.4) | 33.1 |
Inventory step up | 0 | 36.2 | 0.2 |
Settlement loss on pension plan terminations | 0 | 3.7 | 14.1 |
Non-cash items included in income, net | 23.1 | (4.2) | 7.6 |
Other, net | (7.1) | 22.1 | (4.7) |
Changes in assets and liabilities used in operations, net of acquisitions | |||
Decrease / (increase) in trade receivables, net | 47.8 | (24.9) | (1.1) |
Increase in inventories | (39.8) | (15.2) | (12.1) |
Decrease / (increase) in other current assets | 53.4 | (44.3) | 2.8 |
Increase in accounts payable | 76.2 | 5.2 | 4.4 |
(Decrease) / increase in other current liabilities | (25.4) | 9.6 | 20.4 |
Net cash from operating activities from continuing operations | 389.3 | 142.1 | 228.7 |
Net cash (used by) / from operating activities from discontinued operations | (12.9) | 7.4 | 0 |
Net cash from operating activities from continuing operations | 376.4 | 149.5 | 228.7 |
Cash Flow from Investing Activities | |||
Capital expenditures | (65.3) | (55.1) | (24.2) |
Proceeds from sale of assets | 6.4 | 0.2 | 6.1 |
Acquisitions, net of cash acquired | (5.1) | (2,460) | (38.1) |
Net cash used by investing activities from continuing operations | (64) | (2,514.9) | (56.2) |
Net cash from / (used by) investing activities from discontinued operations | 280.9 | (407.4) | 0 |
Net cash used by investing activities from continuing operations | 216.9 | (2,922.3) | (56.2) |
Cash Flow from Financing Activities | |||
Cash proceeds from issuance of debt with maturities greater than 90 days | 2,020.6 | 1,800 | 1,259.9 |
Payments on debt with maturities greater than 90 days | (1,393.5) | (529.5) | (4) |
Net (decrease)/increase in debt with maturities 90 days or less | (30.2) | (214.1) | 143.4 |
Debt issuance costs | (26.5) | (40.1) | (22.6) |
Premiums paid on extinguishment of debt | (18.3) | 0 | 0 |
Net proceeds from issuance of mandatory convertible preferred stock | 0 | 199.5 | 0 |
Net proceeds from issuance of common stock | 0 | 205.3 | 0 |
Dividends paid on common stock | (85.4) | (83) | (70) |
Dividends paid on mandatory convertible preferred shares | (16.2) | (8) | 0 |
Common stock purchased | (45) | (45) | (70) |
Taxes paid for withheld share-based payments | (11.3) | (8.3) | (10.4) |
Net cash from financing activities from continuing operations | 394.2 | 1,276.8 | 1,226.3 |
Net cash used by financing activities from discontinued operations | (1.1) | (4.7) | 0 |
Net cash from financing activities | 393.1 | 1,272.1 | 1,226.3 |
Effect of exchange rate changes on cash | 4.9 | (9.1) | (8.5) |
Net increase / (decrease) in cash, cash equivalents, and restricted cash from continuing operations | 724.4 | (1,105.1) | 1,390.3 |
Net increase / (decrease) in cash, cash equivalents, and restricted cash from discontinued operations | 266.9 | (404.7) | 0 |
Net increase / (decrease) in cash, cash equivalents, and restricted cash | 991.3 | (1,509.8) | 1,390.3 |
Cash, cash equivalents, and restricted cash, beginning of period | 258.5 | 1,768.3 | 378 |
Cash, cash equivalents, and restricted cash, end of period | $ 1,249.8 | $ 258.5 | $ 1,768.3 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY/(DEFICIT) - USD ($) $ in Millions | Total | Common Stock | Preferred Stock | Preferred Stock | Preferred StockPreferred Stock | Common Stock | Common StockCommon Stock | Additional Paid-in Capital | Additional Paid-in CapitalCommon Stock | Additional Paid-in CapitalPreferred Stock | Retained Earnings | Accumulated Other Comprehensive (Loss)/Income | Treasury Stock |
Beginning Balance at Sep. 30, 2017 | $ 85.1 | $ 0 | $ 0.6 | $ 196.7 | $ 198.7 | $ (238.8) | $ (72.1) | ||||||
Beginning Balance (Adoption of ASU 2016-16) at Sep. 30, 2017 | (59.2) | (59.2) | |||||||||||
Beginning Balance (Adoption of ASU 2018-02) at Sep. 30, 2017 | 0 | 20.4 | (20.4) | ||||||||||
Beginning balance, preferred (in shares) at Sep. 30, 2017 | 0 | ||||||||||||
Beginning balance, common (in shares) at Sep. 30, 2017 | 60,709,000 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net earnings form continuing operations | 93.5 | 93.5 | |||||||||||
Loss from discontinued operations, net of tax | 0 | ||||||||||||
Share based compensation expense | 28.2 | ||||||||||||
Deferred compensation plan | 12 | ||||||||||||
Share based payments | 28.2 | 28.2 | |||||||||||
Common stock purchased | $ (70) | (70) | |||||||||||
Common stock purchased (in shares) | (1,439,211) | (1,439,000) | |||||||||||
Activity under stock plans | $ (10.4) | (19.1) | (4) | 12.7 | |||||||||
Activity under stock plans (in shares) | 338,000 | ||||||||||||
Dividends to shareholders | (72.1) | (72.1) | |||||||||||
Mandatory preferred stock dividends | 0 | ||||||||||||
Other comprehensive income | 17.4 | 17.4 | |||||||||||
Ending Balance at Sep. 30, 2018 | 24.5 | $ 0 | $ 0.6 | 217.8 | 177.3 | (241.8) | (129.4) | ||||||
Beginning balance, preferred (in shares) at Sep. 30, 2018 | 0 | ||||||||||||
Ending Balance, common (in shares) at Sep. 30, 2018 | 59,608,000 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net earnings form continuing operations | 64.7 | 64.7 | |||||||||||
Loss from discontinued operations, net of tax | (13.6) | (13.6) | |||||||||||
Share based compensation expense | 27.1 | ||||||||||||
Deferred compensation plan | 0.2 | ||||||||||||
Share based payments | 27.1 | 27.1 | |||||||||||
Issuance of stock | $ 445.8 | $ 199.5 | $ 0.1 | $ 445.7 | $ 199.5 | ||||||||
Issuance of stock (in shares) | 2,156,000 | 9,966,000 | |||||||||||
Common stock purchased | $ (45) | (45) | |||||||||||
Common stock purchased (in shares) | (1,036,000) | (1,036,000) | |||||||||||
Activity under stock plans | $ (8.3) | (19.8) | (4.5) | 16 | |||||||||
Activity under stock plans (in shares) | 364,000 | ||||||||||||
Dividends to shareholders | (82.4) | (82.4) | |||||||||||
Mandatory preferred stock dividends | (12) | ||||||||||||
Dividends to preferred shareholders | (12) | (12) | |||||||||||
Other comprehensive income | (56.5) | (56.5) | |||||||||||
Ending Balance at Sep. 30, 2019 | 543.8 | $ 0 | $ 0.7 | 870.3 | 129.5 | (298.3) | (158.4) | ||||||
Beginning balance, preferred (in shares) at Sep. 30, 2019 | 2,156,000 | ||||||||||||
Ending Balance, common (in shares) at Sep. 30, 2019 | 68,902,000 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net earnings form continuing operations | 46.8 | ||||||||||||
Loss from discontinued operations, net of tax | (140.1) | ||||||||||||
Share based compensation expense | 24.5 | ||||||||||||
Deferred compensation plan | 0.2 | (5.7) | 5.7 | ||||||||||
Deferred compensation (in shares) | 125,000 | ||||||||||||
Share based payments | 24.5 | ||||||||||||
Common stock purchased | $ (45) | (45) | |||||||||||
Common stock purchased (in shares) | (980,000) | (980,000) | |||||||||||
Activity under stock plans | $ (11.3) | (29.9) | (2.2) | 20.8 | |||||||||
Activity under stock plans (in shares) | 471,000 | ||||||||||||
Dividends to shareholders | (84) | (84) | |||||||||||
Mandatory preferred stock dividends | (16.2) | ||||||||||||
Dividends to preferred shareholders | (16.2) | ||||||||||||
Other comprehensive income | (9.4) | (9.4) | |||||||||||
Ending Balance at Sep. 30, 2020 | $ 309.1 | $ 0 | $ 0.7 | $ 859.2 | $ (66.2) | $ (307.7) | $ (176.9) | ||||||
Beginning balance, preferred (in shares) at Sep. 30, 2020 | 2,156,000 | ||||||||||||
Ending Balance, common (in shares) at Sep. 30, 2020 | 68,518,000 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Description of Business – Energizer Holdings, Inc. and its subsidiaries (Energizer or the Company) is a global manufacturer, marketer and distributor of household batteries, specialty batteries and portable lights under the Energizer® and Eveready® brand names. Energizer offers batteries using lithium, alkaline, carbon zinc, nickel metal hydride, zinc air and silver oxide constructions. On July 1, 2015, Energizer completed its legal separation from our former parent company, Edgewell Personal Care Company (Edgewell), via a tax free spin-off (the Spin-off or Spin). Energizer operates as an independent, publicly traded company on the New York Stock Exchange trading under the symbol "ENR." On July 1, 2016, Energizer expanded its portfolio of brands with an acquisition of a leading designer and marketer of automotive fragrance and appearance products. The Company's brands now include Refresh Your Car!®, California Scents®, Driven®, Bahama & Co.®, LEXOL® and Eagle One®. On July 2, 2018, Energizer acquired the Nu Finish® and Scratch Doctor® brands to add to its automotive appearance offerings (Nu Finish Acquisition). On January 2, 2019, Energizer expanded its battery portfolio with the acquisitions of Spectrum Holdings, Inc.’s (Spectrum) global battery, lighting, and portable power business (Battery Acquisition). The Battery Acquisition included the Rayovac® and Varta® brands (Acquired Battery Business). On January 28, 2019, Energizer further expanded its auto care portfolio with the acquisition of Spectrum's global auto care business (Auto Care Acquisition). The Auto Care Acquisition included the Armor All®, STP®, and A/C PRO® brands (Acquired Auto Care Business). On January 2, 2020, the Company sold the Varta® consumer battery business in the Europe, Middle East and Africa regions, including manufacturing and distribution facilities in Germany (Divestment Business) to VARTA Aktiengesellschaft (VARTA AG) for a contractual purchase price of €180.0, subject to purchase price adjustments (Varta Divestiture). This business was acquired as part of the Battery Acquisition and was required to be divested per regulatory requirements. Pursuant to the terms of the Battery Acquisition agreement, Spectrum also contributed cash proceeds toward this sale. Total cash proceeds received, including related hedging arrangements, net of the final working capital settlement, were $323.1 and the Company recorded a pre-tax loss of $141.6. Refer to Note 5, Divestment, for further discussion. Basis of Presentation – The consolidated financial statements include the accounts of Energizer and its subsidiaries. All significant intercompany transactions are eliminated. Energizer has no material equity method investments, variable interests or non-controlling interests. As a result of the Varta Divestiture, the assets and liabilities associated with the Divestment Business as of September 30, 2019 were classified as held for sale in the accompanying Consolidated Balance Sheets. There were no assets or liabilities from these operations as of September 30, 2020. The respective operations of the Divestment Business, including a loss recorded on divestment, have been classified as discontinued operations in the accompanying Consolidated Statements of Earnings and Comprehensive Income and Statements of Cash Flows. See Note 5 - Divestment for more information on the assets and liabilities classified as held for sale and discontinued operations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Energizer’s significant accounting policies, which conform to GAAP and are applied on a consistent basis in all years presented, except as indicated, are described below. Use of Estimates – The preparation of the Company's Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. On an ongoing basis, Energizer evaluates its estimates, including those related to customer promotional programs and incentives, product returns, bad debts, the carrying value of inventories, intangible and other long-lived assets, income taxes, pensions and other postretirement benefits, share-based compensation, contingencies and acquisitions. Actual results could differ materially from those estimates. In regard to ongoing impairment testing of goodwill and indefinite lived intangible assets, significant deterioration in future cash flow projections, changes in discount rates used in discounted cash flow models or changes in other assumptions used in estimating fair values, versus those anticipated at the time of the initial acquisition, as well as subsequent estimated valuations, could result in impairment charges that may materially affect the financial statements in a given year. Cash and Cash Equivalents – Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less. At September 30, 2020 and 2019, Energizer had $459.8 and $258.5, respectively, in available cash, 61.8% and 75.8% of which was outside of the U.S., respectively. The Company has extensive operations, including a significant manufacturing footprint outside of the U.S. We manage our worldwide cash requirements by reviewing available funds among the many subsidiaries through which we conduct our business and the cost effectiveness with which those funds can be accessed. The repatriation of cash balances from certain of our subsidiaries could have adverse tax consequences or be subject to regulatory capital requirements; however, those balances are generally available without legal restrictions to fund ordinary business operations. Our intention is to reinvest these funds indefinitely. Restricted Cash – The Company defines restricted cash as cash that is legally restricted as to withdrawal or usage. The amount included in restricted cash on the Consolidated Balance Sheet at September 30, 2020 represents the net proceeds from the September bond offering for the $800.0 Senior Notes at 4.375% due in 2029. These funds are net of the bank fees paid at funding. The funds were released subsequent to year-end on October 16, 2020 and were used to fund the full redemption of the USD 2026 Senior Notes at 6.375%. See Note 13, Debt, for further information. There was no restricted cash at September 30, 2019. At September 30, 2020 2019 Cash and cash equivalents $ 459.8 $ 258.5 Restricted cash 790.0 — Total Cash, cash equivalents and restricted cash shown in the statement of cash flows $ 1,249.8 $ 258.5 Foreign Currency Translation – Financial statements of foreign operations where the local currency is the functional currency are translated using end-of-period exchange rates for assets and liabilities and average exchange rates during the period for results of operations. Related translation adjustments are reported as a component within accumulated other comprehensive loss in the equity section of the Consolidated Balance Sheets. Effective July 1, 2018, the financial statements for our Argentina subsidiary are consolidated under the rules governing the translation of financial information in a highly inflationary economy. Under U.S. GAAP, an economy is considered highly inflationary if the cumulative inflation rate for a three year period meets or exceeds 100 percent. The Argentina economy exceeded the three year cumulative inflation rate of 100 percent as of June 2018. If a subsidiary is considered to be in a highly inflationary economy, the financial statements of the subsidiary must be remeasured into the Company’s reporting currency (U.S. dollar) and future exchange gains and losses from the remeasurement of monetary assets and liabilities are reflected in current earnings, rather than exclusively in the equity section of the balance sheet, until such time as the economy is no longer considered highly inflationary. Financial Instruments and Derivative Securities – Energizer uses financial instruments, from time to time, in the management of foreign currency, interest rate risk and commodity price risks that are inherent to its business operations. Such instruments are not held or issued for trading purposes. Every derivative instrument (including certain derivative instruments embedded in other contracts) is required to be recorded on the balance sheet at fair value as either an asset or liability. Changes in fair value of recorded derivatives are required to be recognized in earnings unless specific hedge accounting criteria are met. Foreign exchange instruments, including currency forwards, are used primarily to reduce cash transaction exposures and to manage other translation exposures. Foreign exchange instruments used are selected based on their risk reduction attributes, costs and the related market conditions. The Company has designated certain foreign currency contracts as cash flow hedges for accounting purposes as of September 30, 2020 and 2019. The Company has interest rate risk with respect to interest expense on variable rate debt. The Company is party to an interest rate swap agreement with one major financial institution that fixes the variable benchmark component (LIBOR) on $200.0 of the Company's variable rate debt at September 30, 2020 and 2019. In February 2018, the Company entered into a forward starting interest rate swap with an effective date of October 1, 2018, with one major financial institution that fixed the variable benchmark component (LIBOR) on additional variable rate debt at an interest rate of 2.47%. At the effective date, the swap had a notional value of $400.0. Beginning April 1, 2019, the notional amount decreased $50.0 each quarter, and continues to decrease until its termination date of December 31, 2020. The notional value of the swap was $100.0 at September 30, 2020. Energizer uses raw materials that are subject to price volatility. The Company may use hedging instruments to reduce exposure to variability in cash flows associated with future purchases of commodities. At September 30, 2020 and 2019, the Company had derivative contracts for the future purchases of zinc. Cash Flow Presentation – The Consolidated Statements of Cash Flows are prepared using the indirect method, which reconciles net earnings to cash flow from operating activities. The reconciliation adjustments include the removal of timing differences between the occurrence of operating receipts and payments and their recognition in net earnings. The adjustments also remove cash flows arising from investing and financing activities, which are presented separately from operating activities. Cash flows from foreign currency transactions and operations are translated at an average exchange rate for the period. Cash flows from hedging activities are included in the same category as the items being hedged, which is primarily operating activities. Cash payments related to income taxes are classified as operating activities. Cash flows are also distinguished between our continuing operations and our discontinued operations. Trade Receivables, net – Trade receivables are stated at their net realizable value. The allowance for trade promotions reflects management's estimate of the amount of trade promotions that customers will take as an invoice reduction, rather than receiving cash payments for the trade allowances earned. See additional discussion on the trade allowances in the revenue recognition discussion further in this note. The allowance for doubtful accounts reflects the Company's best estimate of probable losses inherent in the receivables portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other currently available information. Receivables that the Company has factored at September 30, 2020 and 2019 are excluded from the Trade receivables, net balance. Bad debt expense is included in Selling, general and administrative expense (SG&A) in the Consolidated Statements of Earnings and Comprehensive Income. Trade Receivables, net consists of: September 30, 2020 2019 Trade receivables $ 447.5 $ 473.1 Allowance for trade promotions (152.7) (129.1) Allowance for returns and doubtful accounts (2.8) (3.8) Trade receivables, net $ 292.0 $ 340.2 Trade Receivables Factoring - Energizer enters into various factoring agreements and early pay programs with our customers to sell our trade receivables under non-recourse agreements in exchange for cash proceeds. In fiscal year 2019, the credit agreement was amended so that Energizer may sell their accounts receivable up to a maximum of $500.0 annually. During fiscal years 2020 and 2019, the Company sold $439.5 and $300.2, respectively, of receivables under this program. At September 30, 2020 and 2019, Energizer had $132.9 and $87.8, respectively, of outstanding sold receivables, which are excluded from the Trade receivables, net balance above. In some instances, we may continue to service the transferred receivables after factoring has occurred. However, any servicing of the trade receivable does not constitute significant continuing involvement and we do not carry any material servicing assets or liabilities. These receivables qualify for sales treatment under ASC 860 Transfers and Servicing, and the proceeds for the sale of these receivables is included in net cash from operating activities in the Consolidated Statement of Cash Flows. As of September 30, 2020 and 2019, cash from factored receivables collected but not yet due to the bank included in Other current liabilities was $0.5 and $12.4, respectively. Additionally, the fees associated with factoring our receivables were $4.7 and $4.9 during the years ended September 30, 2020 and 2019, respectively. Any discounts and factoring fees related to these receivables are expensed as incurred in the Consolidated Statement of Earnings and Comprehensive Income in Selling, general and administrative expense. There were no material factoring arrangements during fiscal 2018. Inventories – Inventories are valued at the lower of cost and net realizable value, with cost generally being determined using average cost or the first-in, first-out (FIFO) method. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company records a reserve for excess and obsolete inventory based upon the historical usage rates, sales patterns of its products and specifically-identified obsolete inventory. Capitalized Software Costs – Capitalized software costs are included in Other assets. These costs are amortized using the straight-line method over periods of related benefit ranging from three Property, Plant and Equipment, net – Property, plant and equipment, net is stated at historical costs. Expenditures for new facilities and expenditures that substantially increase the useful life of property, including interest during construction, are capitalized and reported in the Capital expenditures caption in the Consolidated Statements of Cash Flows. Maintenance, repairs and minor renewals are expensed as incurred. When property is retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts, and gains or losses on the disposition are reflected in earnings. Property, plant and equipment, net held under capital leases are amortized on a straight-line bases over the shorter of the lease term or estimated useful life of the asset and such amortization is included in depreciation expense. Depreciation is generally provided on the straight-line basis by charges to pre-tax earnings at rates based on estimated useful lives. Estimated useful lives range from two twenty-five three Estimated useful lives are periodically reviewed and, when appropriate, changes are made prospectively. When certain events or changes in operating conditions occur, asset lives may be adjusted and an impairment assessment may be performed on the recoverability of the carrying amounts. Impairment of Long-Lived Assets – Energizer reviews long-lived assets, other than goodwill and other intangible assets for impairment, when events or changes in business circumstances indicate that the remaining useful life may warrant revision or that the carrying amount of the long-lived asset may not be fully recoverable. Energizer performs undiscounted cash flow analysis to determine if impairment exists. If impairment is determined to exist, any related impairment loss is calculated based on estimated fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less cost of disposal. Acquisitions – Energizer accounts for the acquisition of a business using the acquisition method of accounting and allocates the cost of an acquired business to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The excess value of the cost of an acquired business over the fair value of the assets acquired and liabilities assumed is recognized as goodwill. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to assets acquired and liabilities assumed with the corresponding offset to goodwill. During fiscal 2019, Energizer used variations of the income approach in determining the fair value of intangible assets acquired in the Battery and Auto Care Acquisitions. Specifically, the Company utilized the multi-period excess earnings method for determining the fair value of the indefinite lived trade names and customer relationships acquired, and the relief from royalty method to determine the fair value of the proprietary technology acquired. Our determination of the fair value of the indefinite lived trade names acquired involved the use of significant estimates and assumptions related to revenue growth rates and discount rates. Our determination of the fair value of customer relationships acquired involved significant estimates and assumptions related to revenue growth rates, discount rates, and customer attrition rates. Our determination of the fair value of the proprietary technology acquired involved the use of significant estimates and assumptions related to revenue growth rates, royalty rates and discount rates. Energizer 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. However, our assumptions are inherently risky and actual results could differ from those estimates. Adverse changes in the judgments, assumptions and estimates used in future measurements of fair value, including discount rates or future operating results and related cash flow projections, could result in an impairment of goodwill or intangible assets that would require a non-cash charge to the consolidated statements of operations and may have a material effect on our financial condition and operating results. Goodwill and Other Intangible Assets – Goodwill and indefinite-lived intangibles are not amortized, but are evaluated annually for impairment as part of the Company's annual business planning cycle in the fourth fiscal quarter, or when indicators of a potential impairment are present. Intangible assets with finite lives are amortized on a straight-line basis over expected lives. Such intangibles are also evaluated for impairment including ongoing monitoring of potential impairment indicators. Revenue Recognition – The Company measures revenue as the amount of consideration for which it expects to be entitled in exchange for transferring goods. Net sales reflect the transaction prices for contracts, which include units shipped at selling list prices reduced by variable consideration as determined by the terms of each individual contract. Discounts are offered to customers for early payment and an estimate of the discount is recorded as a reduction of net sales in the same period as the sale. Our standard sales terms are final and returns or exchanges are not permitted unless a special exception is made. Reserves are established and recorded in cases where the right of return does exist for a particular sale. Energizer offers a variety of 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. Methodologies for determining these provisions are dependent on specific customer pricing and promotional practices, which range from contractually fixed percentage price reductions to reimbursement based on actual occurrence or performance. Where applicable, future reimbursements are estimated based on a combination of historical patterns and future expectations regarding specific in-market product performance. Energizer accrues, at the time of sale, the estimated total payments and allowances associated with each transaction. Customers redeem trade promotions in the form of payments from the accrued trade allowances or invoice credits against trade receivables. Additionally, Energizer offers programs directly to consumers to promote the sale of its products. Revenue is recorded net of the taxes we collect on behalf of governmental authorities which are generally included in the price to the customer. Energizer continually assesses the adequacy of accruals for customer 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. Our standard sales terms generally include payments within 30 to 60 days and are final with returns or exchanges not permitted unless a special exception is made. Our Auto Care channel terms are longer, in some cases up to 365 days, in which case we use our Trade Receivables factoring program for more timely collection. Reserves are established based on historical data and recorded in cases where the right of return does exist for a particular sale. The Company does not offer warranties on products. The Company’s contracts with customers do not have significant financing components or non-cash consideration and the Company does not have unbilled revenue or significant amounts of prepayments from customers. Revenue is recorded net of the taxes we collect on behalf of governmental authorities which are generally included in the price to the customer. Shipping and handling activities are accounted for as contract fulfillment costs and recorded in Cost of products sold. Advertising and Sales Promotion Costs – The Company advertises and promotes its products through national and regional media and expenses such activities as incurred. Advertising costs were $115.1, $96.7, and $80.1 for the fiscal years ended September 30, 2020, 2019, 2018, respectively. Research and Development Costs - The Company expenses research and development costs as incurred. Income Taxes – Our annual effective income tax rate is determined based on our income, statutory tax rates and the tax impacts of items treated differently for tax purposes than for financial reporting purposes. Tax law requires certain items be included in the tax return at different times than the items are reflected in the financial statements. Some of these differences are permanent, such as expenses that are not deductible in our tax return, and some differences are temporary, reversing over time, such as depreciation expense. These temporary differences create deferred tax assets and liabilities. The Company estimates income taxes and the effective income tax rate in each jurisdiction that it operates. This involves estimating taxable earnings, specific taxable and deductible items, the likelihood of generating sufficient future taxable income to utilize deferred tax assets, the portion of the income of foreign subsidiaries that is expected to be remitted to the U.S. and be taxable and possible exposures related to future tax audits. Deferred tax assets are evaluated on a subsidiary by subsidiary basis to ensure that the asset will be realized. Valuation allowances are established when the realization is not deemed to be more likely than not. Future performance is monitored, and when objectively measurable operating trends change, adjustments are made to the valuation allowances accordingly. To the extent the estimates described above change, adjustments to income taxes are made in the period in which the estimate is changed. The Company operates in multiple jurisdictions with complex tax and regulatory environments, which are subject to differing interpretations by the taxpayer and the taxing authorities. At times, the Company may take positions that management believes are supportable, but are potentially subject to successful challenges by the appropriate taxing authority. The Company evaluates its tax positions and establishes liabilities in accordance with guidance governing accounting for uncertainty in income taxes. The Company reviews these tax uncertainties in light of the changing facts and circumstances, such as the progress of tax audits, and adjusts them accordingly. In January 2018, the Financial Accounting Standard Board released guidance on the accounting for tax on the global intangible low-taxed income (GILTI) provisions of the Tax Cuts and Jobs Act (the Tax Act). The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that either accounting for deferred taxes related to GILTI inclusions or to treat any taxes on GILTI inclusions as a period cost are both acceptable methods subject to an accounting policy election. The Company has completed its analysis of the GILTI rules and has made an accounting policy election to treat the taxes due from GILTI as a period expense when incurred. In general, it is our practice and intention to permanently reinvest the earnings of our foreign subsidiaries and repatriate earnings only when the tax impact is zero or very minimal, and that position has not changed after incurring the transition tax under the Tax Act. No provision has been provided for taxes that would result upon repatriation of our foreign investments to the United States. We intend to reinvest these earnings indefinitely in our foreign subsidiaries to fund local operations, fund strategic growth objectives, and fund capital projects. See Note 7, Income Taxes, of the Notes to Consolidated Financial Statements for further discussion. Share-Based Payments – The Company grants restricted stock equivalents, which generally vest over two Estimated Fair Values of Financial Instruments – Certain financial instruments are required to be recorded at the estimated fair value. Changes in assumptions or estimation methods could affect the fair value estimates; however, we do not believe any such changes would have a material impact on our financial condition, results of operations or cash flows. Other financial instruments including cash and cash equivalents, restricted cash, and short-term borrowings, including notes payable, are recorded at cost, which approximates estimated fair value. Reclassifications - Certain reclassifications have been made to the prior year financial statements to conform to the current presentation. Recently Adopted Accounting Pronouncements – Effective October 1, 2019, the Company adopted ASU 2016-02 and related standards (collectively ASC 842, Leases). This new guidance aligns the measurement of leases under GAAP more closely with International Financial Reporting Standards by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The Company elected the optional transition method and adopted the new guidance on a modified retrospective basis with no restatement of prior period amounts. Further, the Company elected to apply the package of practical expedients which allows companies to carry forward original lease determinations, lease classifications, and accounting for initial direct costs. Energizer also made the policy elections upon adoption for the exclusion of short term leases on the balance sheet and to not separate lease and non-lease components The adoption of ASC 842, Leases, resulted in the recognition of additional assets and corresponding liabilities on the Consolidated Balance Sheet for the Company's operating leases; however, it did not have a material impact on the Consolidated Statement of Earnings and Comprehensive Income, the Consolidated Statement of Cash Flows and the Consolidated Statement of Shareholders' Equity/(Deficit), including retained earnings. Refer to Note 11, Leases, for further information. Recently Issued Accounting Pronouncements – In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendment provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on contracts, hedging relationships and other transactions that reference LIBOR. These updates are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is currently evaluating our contracts and the optional expedients provided by this update. In August 2020, the FASB issued ASU 2020-06 Changes to Accounting for Convertible Debt. This amendment simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. The FASB has reduced the number of accounting models for convertible debt and convertible preferred stock instruments and made certain disclosure amendments to improve the information provided to financial statement users. The new guidance also modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted EPS computation. The amendment goes into effect for fiscal years starting after December 15, 2021, which for Energizer would be the beginning of fiscal year 2023. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. The Company is |
Spin Costs
Spin Costs | 12 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Spin Costs | Spin Costs The Company incurred costs associated with the evaluation, planning and execution of the Spin-off. On a project to date basis, the total costs incurred and allocated to Energizer for the Spin-off were $197.6, inclusive of the costs of early debt retirement recorded in fiscal 2015. All spin activity is complete and we do not expect any further costs related to the Spin-off. No spin costs were incurred in the period ending September 30, 2019 or 2018. During the twelve months ended September 30, 2017, the Company recorded income of $3.8 in spin restructuring which included $2.5 of income in the second quarter reflecting the true up of previously accrued contract termination costs related to the 2016 right-sizing of the corporate headquarters and the first quarter sale of a facility in North America that was previously closed as part of the spin for a gain of $1.3. Energizer does not include the spin restructuring costs in the results of its reportable segments. The estimated impact of allocating such charges to segment results would have impacted the Americas segment by $1.3 and Corporate by $2.5. |
Revenue
Revenue | 12 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Nature of Our Business - The Company, through its operating subsidiaries, is one of the world’s largest manufacturers, marketers and distributors of household batteries, specialty batteries and lighting products, and a leading designer and marketer of automotive fragrance, appearance, performance and air conditioning recharge products. We distribute our products to consumers through numerous retail locations worldwide, including mass merchandisers and warehouse clubs, food, drug and convenience stores, electronics specialty stores and department stores, hardware and automotive centers, e-commerce and military stores. We sell to our customers through a combination of a direct sales force and exclusive and non-exclusive third-party distributors and wholesalers. Our Americas segment sales are comprised of North America and Latin America market groups. North America sales are generally through large retailers with nationally or regionally recognized brands. Latin America sales are generally through distributors or sales by wholesalers or small retailers who may not have national or regional presence. Our International segment sales are comprised of modern trade, developing and distributor market groups. Modern trade, which is most prevalent in Western Europe and more developed economies throughout the world, generally refers to sales through large retailers with nationally or regionally recognized brands. Developing markets generally include sales by wholesalers or small retailers who may not have a national or regional presence. Distributors are utilized in other markets where the Company does not have a direct sales force. Each market's determination is based on the predominant customer type or sales strategy utilized in the market. Supplemental product and market information is presented below for revenues from external customers for the twelve months ended September 30, 2020, 2019 and 2018: For the Twelve Months Ended September 30, Net Sales 2020 2019 2018 Batteries $ 2,099.8 $ 1,959.9 $ 1,612.7 Auto Care 513.0 409.3 95.4 Lights and Licensing 132.0 125.3 89.6 Total Net Sales $ 2,744.8 $ 2,494.5 $ 1,797.7 For the Twelve Months Ended September 30, Net Sales 2020 2019 2018 North America $ 1,753.0 $ 1,534.7 $ 1,017.8 Latin America 218.2 200.1 117.8 Americas 1,971.2 1,734.8 1,135.6 Modern Markets 462.0 444.7 381.9 Developing Markets 189.6 193.4 181.0 Distributor Markets 122.0 121.6 99.2 International 773.6 759.7 662.1 Total Net Sales $ 2,744.8 $ 2,494.5 $ 1,797.7 When Performance Obligations are Satisfied - |
Acquisitions
Acquisitions | 12 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Custom Accessories Europe Acquisition - On January 31, 2020, the Company entered into a share purchase agreement to acquire Custom Accessories Europe Group International Limited (“CAE”) for $1.9 in cash. CAE is a well-established marketer of branded automotive accessories throughout the United Kingdom and Europe. CAE partners with major automotive accessory brand owners to identify and develop complimentary brand extensions supported by sourcing and distribution activities. The purchase agreement has potential earnout payments that could increase the purchase price up to $9.9 if certain financial metrics are achieved over the next three years. During the fiscal year the Company paid an additional $0.6 for the first earnout payment threshold. The preliminary purchase price of the acquisition is $6.4 after working capital adjustments, and the Company has allocated the purchase price to the assets acquired and liabilities assumed, resulting in identified intangible assets for vendor relationships of approximately $5.0. These vendor relationship intangibles which will be amortized over the three-year lives of the vendor agreements. FDK Indonesia Acquisition - During fourth quarter of fiscal 2020, the Company entered into an agreement with FDK Corporation to acquire its subsidiary FDK Indonesia, a battery manufacturing facility. Subsequent to the fiscal year end, on October 1, 2020, the Company completed the acquisition for a contractual purchase price of $18.2, and paid cash of $16.9 after contractual adjustments to FDK Corporation. The acquisition of the FDK Indonesia facility increases the Company's alkaline battery production capacity and allows us to avoid future planned capital expenditures. The Company is still analyzing the opening balance sheet and overall purchase price, but does not expect there to be significant intangible assets or goodwill recognized with this acquisition. Battery Acquisition - On January 2, 2019, the Company completed the Battery Acquisition with a contractual purchase price of $2,000.0, subject to certain purchase price adjustments. The acquisition expanded our battery portfolio globally with the addition of a strong value brand. The final cash consideration after contractual and working capital adjustments was $1,962.4. Included in the above amount is $400.0 of cash consideration that has been allocated to the Divestment Business discussed below. The Battery Acquisition was accounted for as a business combination using the acquisition method of accounting which requires assets acquired and liabilities assumed to be recognized at fair value as of the acquisition date. We have calculated fair values of assets and liabilities acquired for the Battery Acquisition. During the fiscal quarter ended December 31, 2019, the Company completed the valuation analysis for the Battery Acquisition and no significant changes were made to the valuation. For purposes of the allocation, the Company determined a fair value adjustment for inventory based on the estimated selling price of finished goods on hand at the closing date less the sum of (a) costs of disposal and (b) a reasonable profit allowance for the selling effort of the acquiring entity. The preliminary fair value adjustment for the inventory of $14.6 was recorded as expense to Cost of products sold as that inventory was sold in fiscal 2019. The fair values of the Battery Acquisition's Property, plant and equipment were estimated using the market approach for land and variations of the cost approach for the buildings and equipment. The fair values of the Battery Acquisition's identifiable intangible assets were estimated using variations of the income approach. The fair value of acquired trade names acquired and customer relationships was determined by applying the multi-period excess earnings method under the income approach. The fair value of proprietary technology acquired was determined by applying the relief-from-royalty method under the income approach. The Divestment Business included the valuation of Inventory, Property, plant and equipment and Intangible assets consistent with the valuation methods discussed above. The fair value adjustment for the inventory of $11.2 was recorded as expense in the results from discontinued operations in 2019 as that inventory was sold. Goodwill was also allocated to the Divestment Business. The assets and liabilities of the Divestment Business were included as held for sale on the purchase price allocation. The following table outlines the purchase price allocation as of the date of acquisition: Cash and cash equivalents $ 37.8 Trade receivables 54.2 Inventories 80.8 Other current assets 28.2 Assets held for sale 794.6 Property, plant and equipment, net 133.2 Goodwill 496.0 Other intangible assets, net 805.8 Other assets 10.3 Current portion of capital leases (1.2) Accounts payable (39.2) Other current liabilities (19.3) Long-term debt (14.7) Liabilities held for sale (394.6) Other liabilities (9.5) Net assets acquired $ 1,962.4 The table below outlines the purchased identifiable intangible assets of $805.8: Total Weighted Average Useful Lives Trade names $ 587.0 Indefinite Proprietary technology 59.0 6.2 Customer relationships 159.8 15.0 Total Other intangible assets, net $ 805.8 The goodwill acquired in this acquisition is attributable to the workforce of the acquired business and the synergies expected to arise with this transaction through network optimization, Selling, general and administrative expense (SG&A) reductions and procurement efficiencies. The goodwill associated with this acquisition is deductible for tax purposes. Auto Care Acquisition - On January 28, 2019, Energizer entered into a definitive acquisition agreement to acquire Spectrum’s global auto care business, including the Armor All, STP, and A/C PRO brands for a contractual purchase price of $1,250.0, subject to certain purchase price adjustments. The contractual purchase price was comprised of $937.5 in cash and $312.5 of newly-issued Energizer common stock to Spectrum. The initial cash paid after contractual and estimated working capital adjustments was $938.7. During the quarter ended December 31, 2019, the Company finalized the working capital adjustments with Spectrum and paid an additional $3.6 of cash. The equity consideration paid to Spectrum was fair valued at $240.5 based on the 5.3 million shares issued to Spectrum at the Energizer closing stock price of $45.55 on January 28, 2019. The final purchase price paid in cash and equity consideration was $1,182.8. The acquisition allowed for the Company to become a global leader in the auto care market and added automotive performance and air conditioning recharge products to its auto care portfolio. The Auto Care Acquisition was accounted for as a business combination using the acquisition method of accounting which requires assets acquired and liabilities assumed to be recognized at fair value as of the acquisition date. We have calculated fair values of assets and liabilities acquired for the Auto Care Acquisition. During the quarter ended December 31, 2019, the Company completed the valuation analysis for the Auto Care Acquisition. The only significant change in the analysis since the end of fiscal 2019 was the increase in purchase price of $3.6 mentioned above. For purposes of the allocation, the Company determined a fair value adjustment for inventory based on the estimated selling price of finished goods on hand at the closing date less the sum of (a) costs of disposal and (b) a reasonable profit allowance for the selling effort of the acquiring entity. The fair value adjustment for the inventory was $21.6 and was recorded to Cost of products sold as the respective inventory was sold in fiscal 2019. The fair values of the Auto Care Acquisition's Property, plant and equipment were estimated using variations of the cost approach for the building and equipment. The fair values of the Auto Care Acquisition's identifiable intangible assets were estimated using variations of the income approach. The fair value of trade names acquired and customer relationships was determined by applying the multi-period excess earnings method under the income approach. The fair value of proprietary technology acquired was determined by applying the relief-from-royalty method under the income approach. The following table outlines the purchase price allocation as of the date of acquisition: Cash and cash equivalents $ 3.3 Trade receivables 39.7 Inventories 98.6 Other current assets 8.9 Property, plant and equipment, net 70.8 Goodwill 274.0 Other intangible assets, net 965.3 Deferred tax assets 4.2 Other assets 1.7 Current portion of capital leases (0.4) Accounts payable (28.6) Other current liabilities (10.9) Long-term debt (31.9) Other liabilities (deferred tax liabilities) (211.9) Net assets acquired $ 1,182.8 The table below outlines the purchased identifiable intangible assets of $965.3: Total Weighted Average Useful Lives Trade names $ 701.6 Indefinite Trade names 15.4 15 Proprietary technology 113.5 9.8 Customer relationships 134.8 15 Total Other intangible assets, net $ 965.3 The goodwill acquired in this acquisition is attributable to the workforce of the acquired business and the synergies expected to arise with this transaction through network optimization, selling, general and administrative reductions and procurement efficiencies. The goodwill is not deductible for tax purposes. Pro Forma Financial Information (Unaudited)- Pro forma net sales (unaudited), Pro forma net earnings from continuing operations (unaudited), Pro from net earnings from continuing operations attributable to common shareholders (unaudited) and Pro forma diluted net earnings per common share - continuing operations (unaudited) for the twelve months ended September 30, 2019 and 2018 are shown in the table below. The unaudited pro forma results are presented as if the Battery and Auto Care Acquisitions had occurred on October 1, 2017. Pro forma results for the CAE acquisition were not considered material and, as such, are not included below. The pro forma results are not indicative of the results the Company would have achieved if the acquisitions had occurred that date or indicative of the results of the future operation of the combined company. The Nu Finish Acquisition was immaterial for this disclosure and is only included for the periods owned by the Company. The unaudited pro forma adjustments are based upon purchase price allocations and include purchase accounting adjustments for the impact of the inventory step up charge, depreciation and amortization expense from the fair value of the intangible assets and property, plant and equipment, interest and financing costs and the impact of the equity consideration completed to fund the acquisitions. Cost synergies that may result from combining Energizer and the Battery and Auto Care Acquisitions are not included in the pro forma table below. For the Year Ended September 30, 2019 2018 Pro forma net sales (unaudited) $ 2,719.4 $ 2,773.7 Pro forma net earnings from continuing operations (unaudited) 159.7 40.1 Pro forma mandatory preferred stock dividends (unaudited) 16.2 16.2 Pro forma net earnings from continuing operations attributable to common shareholders (unaudited) 143.5 23.9 Pro forma diluted net earnings per common share - continuing operations (unaudited) $ 2.02 $ 0.33 Pro forma weighted average shares of common stock - Diluted (unaudited) 71.0 71.4 The shares included in the above are adjusted to assume that the common stock and Mandatory convertible preferred (MCPS) shares issued for the Auto Care Acquisition occurred as of October 1, 2017. For all periods presented, the MCPS conversion was anti-dilutive and not assumed in the calculation. The unaudited pro forma data above includes the following significant adjustments made to account for certain costs to adjust for as if the acquisitions had occurred as of October 1, 2017. The following expenses, which are net of the applicable tax rates, were added to or removed from the net earnings amounts for each respective period: For the Year Ended September 30, Expense removed/(additional expense) 2019 2018 Inventory step up (unaudited) (1) $ 28.5 $ (27.8) Acquisition and integration costs (unaudited) (2) 44.3 (43.3) Interest and ticking fees on escrowed debt (unaudited) (3) 21.6 (75.7) Gains on escrowed debt (unaudited) (4) (10.5) (15.7) (1) The inventory step up was removed from fiscal 2019 and recorded in fiscal 2018 as the inventory turn would have occurred in that year. (2) Acquisition and integration costs incurred to obtain legal services, pay investment banking fees and other transaction related expenses were removed from the various periods and recorded in the first quarter of fiscal 2018 when the transaction is assumed to have occurred. (3) Interest and ticking fees from the acquisition related debt were accrued over the periods prior to the acquisition occurring. These fees were removed as they would not have been incurred if the acquisition occurred October 1, 2017. The interest from the new capital structure was included in the results and the pre-tax amount of $200.0 was included in each period. (4) The escrowed debt funds earned interest income and had gains on the non functional currency balances. These gains would not have been realized if the transaction had occurred as of October 1, 2017. The pro-forma results above include restructuring charges recorded by the Auto Care Business of $18.4 during the twelve months ended September 30, 2018. Excluded from the above is the write-down of assets of business held for sale to fair value less cost to sell of $107.2 recorded by the Auto Care Business during the twelve months ended September 30, 2019 and the write-off impairment of goodwill of $92.5 recorded by the Auto Car Business during the twelve months ended September 30, 2018. These losses were recorded as a direct result of the transaction and would not have impacted the combined company results. Net sales and Earnings before income taxes for the Battery and Auto Care Acquisitions included in the Company's Consolidated Statement of Earnings and Comprehensive Income are shown in the following table. The Earnings before income taxes includes the inventory fair value adjustment recorded for the acquisitions, but excludes all acquisition and integration costs as well as any additional interest incurred by the Company for the debt issuances to complete the acquisitions: For the Year Ended September 30, 2019 Battery Acquisition Auto Care Acquisition Net sales $ 338.9 $ 315.8 Inventory fair value adjustment 14.6 21.6 Earnings before income taxes 8.7 19.6 Acquisition and Integration Costs- The Company incurred pre-tax acquisition and integration costs related to the Battery Acquisition, the Auto Care Acquisition, and the Nu Finish Acquisition of $68.0, $188.4 and $84.6 in the twelve months ended September 30, 2020, 2019, and 2018, respectively. Pre-tax costs recorded in Costs of products sold were $32.0 for the twelve months ended September 30, 2020 and primarily related to the integration restructuring costs of $29.3 as discussed in Note 6, Restructuring. Pre-tax costs recorded in Costs of products sold were $58.7 for the twelve months ended September 30, 2019, which primarily related to the inventory fair value adjustment of $36.2 and integration restructuring costs of $12.1. Pre-tax costs recorded in Costs of products sold were $0.2 for the twelve months ended September 30, 2018. Pre-tax acquisition and integration costs recorded in SG&A were $38.8, $82.3 and $62.9 for the twelve months ended September 30, 2020, 2019 and 2018, respectively. In fiscal 2020 these expenses primarily related to consulting fees, success incentives, and costs of integrating the information technology systems of the business. In fiscal 2019 and 2018 these expenses primarily related to acquisition success fees and legal, consulting and advisory fees to assist with obtaining regulatory approval around the globe and to plan for the closing and integration of the Battery Acquisition and Auto Care Acquisition. For the twelve months ended September 30, 2020 and 2019 the Company recorded $1.3 and $1.1 in research and development, respectively. Also included in the pre-tax acquisition costs for the twelve months ended September 30, 2019 was $65.6 of interest expense, including ticking fees, related to the escrowed debt for the Battery Acquisition and the financing fees incurred related to amending and issuing the debt for the Battery and Auto Care Acquisitions. The pre-tax acquisition costs for the twelve months ended September 30, 2018 was $41.9 of interest expense, including ticking fees, related to the escrowed debt for the Battery Acquisition and the financing fees incurred related to amending and issuing the debt for the Battery and Auto Care Acquisitions. Included in Other items, net was pre-tax income of $4.1, $19.3 and $20.4 in the twelve months ended September 30, 2020, 2019 and 2018, respectively. The pre-tax income recorded in fiscal 2020 was primarily driven by pre-acquisition insurance proceeds of $4.9, a $1.0 gain on the sale of assets and $0.9 of transition services income, offset by a $2.2 loss related to the hedge contract on the proceeds from the Varta Divestiture and $0.5 of other items. The pre-tax income of $19.3 recorded in fiscal 2019 was primarily driven by the escrowed debt funds held in restricted cash prior to the closing of the Battery Acquisition. The Company recorded a pre-tax gain of $9.0 related to the favorable movement in the escrowed USD restricted cash held in our European Euro functional entity. The Company also recorded interest income of $5.8 earned on the Restricted cash funds held in escrow associated with the Battery Acquisition. The Company recorded a gain of $4.6 related to the hedge contract on the expected proceeds from the anticipated Varta Divestiture and recorded income on transition services agreements of $1.4 for the twelve months ended September 30, 2019. These income items were offset by $1.5 of expense to settle hedge contracts of the acquired business. The Company recorded a pre-tax gain in Other items, net of $15.2 on foreign currency gains related to the Battery Acquisition during the twelve months ended September 30, 2018. Of the gain, $9.4 was related to contracts which were entered into in June 2018 and locked in the U.S. dollar (USD) value of the Euro notes related to the Battery Acquisition. These contracts were terminated when the funds were placed into escrow on July 6, 2018. The remaining $5.8 related to the movement in the escrowed USD restricted cash held in our European Euro functional entity. The Company also recorded interest income in Other items, net of $5.2 earned in Restricted cash funds held in escrow associated with this acquisition during the twelve months ended September 30, 2018. The Company incurred $6.0 of tax withholding costs in the twelve months ended September 30, 2018, related to the cash movement to fund the Battery Acquisition, which were recorded in Income tax provision. |
Divestment
Divestment | 12 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestment | Divestment As discussed in Note 1, Description of Business and Basis of Presentation, the Divestment Business was classified as held for sale in the accompanying Consolidated Balance Sheets as of September 30, 2019 and as discontinued operations in the accompanying Consolidated Statement of Earnings and Comprehensive Income as of September 30, 2020 and 2019. On May 29, 2019, the Company entered into a definitive agreement with VARTA AG to sell the Divestment Business for €180.0, subject to approval by the European Commission and certain purchase price adjustments. On January 2, 2020, the Company sold the business to VARTA AG. Total cash proceeds, including related hedging arrangements, net of the final working capital settlement, were $323.1 from Varta AG and Spectrum. Spectrum contributed proceeds pursuant to the terms of the Battery Acquisition agreement . For the twelve months ended September 30, 2020 the Company has recorded a pre-tax loss of $141.6 for the divestment, which includes contractual adjustments and recognition of tax and other indemnifications under the definitive purchase agreement. Under the definitive purchase agreement, the Company indemnified VARTA AG for certain tax liabilities that existed as of the divestment date. As previously disclosed, Spectrum has further indemnified the Company for those liabilities that arose from the tax years prior to the Company's acquisition of the Divestment Business. An indemnification asset and liability, where necessary, has been recorded to reflect these arrangements. The following table summarizes the assets and liabilities of the Divestment Business classified as held for sale as of September 30, 2019: September 30, 2019 Assets Trade receivables $ 50.9 Inventories 59.8 Other current assets 41.5 Property, plant and equipment, net 78.8 Goodwill 50.5 Other intangible assets, net 489.0 Other assets 21.2 Assets held for sale $ 791.7 Liabilities Current portion of capital leases $ 5.3 Accounts payable 45.9 Notes payable 0.6 Other current liabilities 99.8 Long-term debt 23.5 Deferred tax liability 169.9 Other liabilities (1) 57.9 Liabilities held for sale $ 402.9 (1) Included in other liabilities is a pension liability of $42.4 related to the Divestment Business. The following table summarizes the components of Loss from discontinued operations in the accompanying Consolidated Statement of Earnings and Comprehensive Income for the twelve months ended September 30, 2020 and 2019: For the Years Ended September 30, 2020 2019 Net sales $ 115.8 $ 235.1 Cost of products sold 88.2 180.4 Gross profit 27.6 54.7 Selling, general and administrative expense 18.0 56.8 Advertising and sales promotion expense 0.3 0.8 Research and development expense 0.8 0.8 Interest expense 12.1 15.8 Loss on sale of business 141.6 — Other items, net (3.9) (9.9) Loss before income taxes from discontinued operations (141.3) (9.6) Income tax (benefit)/provision (1.2) 4.0 Net loss from discontinued operations $ (140.1) $ (13.6) Included in the Net loss from discontinued operations for the twelve months ended September 30, 2020, are the deferred financing fee write off related to the pre-payment of debt from the divestment proceeds of $6.9, divestment related pre-tax costs of $1.7 and allocated pre-tax interest expense of $5.0. Included in the Net loss from discontinued operations for the twelve months ended September 30, 2019 are the inventory fair value pre-tax adjustment of $11.2, divestment related pre-tax costs of $13.8 and allocated pre-tax interest expense of $14.9. |
Restructuring
Restructuring | 12 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In the fourth fiscal quarter of 2019, Energizer's Board of Directors approved restructuring related integration plans for our manufacturing and distribution networks. These plans include the closure and combination of distribution and manufacturing facilities in order to reduce complexity and realize greater efficiencies in our manufacturing, packaging and distribution processes. All activities within this plan are expected to be completed by December 31, 2021. For this program we expect to incur additional severance and related benefit costs and other exit-related costs associated with these plans of up to $34 through the end of calendar 2021. I n the fourth fiscal quarter of 2020, the Company initiated a new restructuring program with a primary focus on reorganizing our global end-to-end supply chain network and ensuring accountability by category. This program includes streamlining the Company’s end-to-end supply chain model to enable rapid response to category specific demands and enhancing our ability to better serve our customers. Planning and execution of this program will begin in fiscal ye ar 2021, with completion by the beginning of fiscal year 2022. The expected costs associated with this project are approximately $10 to $12 . The pre-tax expense for charges related to the restructuring plans for the twelve months ended September 30, 2020 and 2019 are noted in the table below and were reflected in Cost of products sold and Selling, general and administrative expense on the Consolidated Statement of Earnings and Comprehensive Income: For the Year Ended September 30, 2020 2019 2019 Restructuring Program Costs of products sold Severance and related benefit costs $ 0.8 $ 9.8 Accelerated depreciation 12.0 2.3 Other exit costs (1) 16.3 — Total 2019 Restructuring costs $ 29.1 $ 12.1 2020 Restructuring Program Costs of products sold Other restructuring related costs (2) $ 0.2 $ — Selling, general and administrate expense Severance and related benefit costs 0.4 — Other restructuring related costs (2) 0.6 — Total 2020 Restructuring Costs $ 1.2 $ — Total restructuring related expense $ 30.3 $ 12.1 (1) Includes charges primarily related to environmental investigatory and mitigation costs, consulting, relocation and other facility exit costs. (2) Primarily includes consulting fees for the restructuring program. The restructuring costs noted above for fiscal year 2020 were included within the Americas and International segments in the amount of $27.5 and $2.8, re spectively. The restructuring costs noted above for fiscal year 2019, were incurred within the Americas and International segments in the amount of $6.0 and $6.1, respectively. The following table summarizes the activity related to the 2019 restructuring program for the Twelve Months Ended September 30, 2020: Utilized September 30, 2019 Charge to Income Cash Non-Cash September 30, 2020 (1) Severance & termination related costs $ 9.8 $ 0.8 $ 5.3 $ — $ 5.3 Accelerated depreciation & asset write-offs — 12.0 — 12.0 — Other exit costs — 16.3 13.4 — 2.9 Total $ 9.8 $ 29.1 $ 18.7 $ 12.0 $ 8.2 (1) At September 30, 2020 and 2019, the restructuring reserve is recorded on the Consolidated Balance Sheet in Other current liabilities of $8.2 and $9.8, respectively. The following table summarizes the activity related to the 2020 restructuring program for the Twelve Months Ended September 30, 2020: Utilized Charge to Income Cash Non-Cash September 30, 2020 (1) Severance & termination related costs $ 0.4 $ — $ — $ 0.4 Other restructuring related costs 0.8 — — $ 0.8 Total $ 1.2 $ — $ — $ 1.2 |
Leases
Leases | 12 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company determines whether an arrangement contains a lease at the inception of the contract by determining if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Energizer's portfolio of leases contains certain real estate, equipment, vehicles and office equipment leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Additionally, the Company's leases do not contain material residual value guarantees or material restrictive covenants. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The Company does not account for lease components separately from non-lease components. The discount rate used to calculate present value for both operating and financing leases is Energizer's incremental borrowing rate based on information available at the commencement date, or if available, the rate implicit in the lease. The incremental borrowing rate used is determined based on fully secured borrowings at the time of adoption, or going forward, at the date of lease commencement. Many of these agreements contain options to renew or terminate the lease. For calculating lease liabilities, the Company includes these options within the lease term when it is reasonably certain that the Company will execute such options. Some of the leases include variable payments, which primarily are tied to asset usage or sales rather than an index or rate. As such, these variable payments are not included in the calculation of the Company's lease assets and liabilities. As of September 30, 2020 the amounts for leases included in our Consolidated Balance Sheet include: Balance Sheet Location September 30, 2020 Operating Leases: Operating lease asset $ 121.9 Operating lease liabilities - current 14.8 Operating lease liabilities 111.9 Total Operating Lease Liabilities $ 126.7 Weighted-average remaining lease term (in years) 16.2 Weighted-average discount rate 4.2 % Finance Leases: Property, plant and equipment, net $ 43.9 Current portion of capital leases 1.7 Long-term debt 44.1 Total Finance Lease Liabilities $ 45.8 Weighted Average remaining lease term (in years) 20.4 Weighted-average discount rate 6.7 % The following table presents the components of lease expense: Twelve Months Ended September 30, 2020 Operating lease cost $ 20.4 Finance lease cost: Amortization of assets 3.2 Interest on lease liabilities 3.0 Variable lease costs 3.9 Total lease costs $ 30.5 Supplemental cash and non-cash information related to leases: Twelve Months Ended September 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 19.3 Operating cash flows from finance leases 2.9 Financing cash flows from finance leases 1.4 Non-cash increase in lease assets and lease liabilities: Operating leases (1) (2) $ 88.4 (1) During the first quarter of fiscal 2020, Energizer entered into a material embedded lease agreement which resulted in operating lease asset and lease liabilities of approximately $34. The embedded operating lease commenced on November 1, 2019. During the second quarter of fiscal 2020, Energizer renewed the North America headquarters lease, which resulted in a material lease modification and additional operating lease assets and lease liabilities of approximately $17. During the third quarter of fiscal 2020, a material lease commenced for the Company's new battery distribution and packaging center in North America, resulting in approximately $36 of additional operating lease related assets and lease liabilities. (2) The non-cash increase in operating lease assets and liabilities above does not include the lease assets and lease liabilities recorded due to the ASC 842 implementation on October 1, 2019. Minimum lease payments under operating and finance leases with non-cancellable terms in excess of one year as of September 30, 2020 are as follows: Operating Leases Finance Leases 2021 $ 18.9 $ 4.9 2022 18.1 5.0 2023 16.8 5.0 2024 16.2 4.9 2025 15.4 5.0 Thereafter 97.0 64.3 Total lease payments 182.4 89.1 Less: Imputed interest (55.7) (43.3) Present value of lease liabilities $ 126.7 $ 45.8 |
Leases | Leases The Company determines whether an arrangement contains a lease at the inception of the contract by determining if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Energizer's portfolio of leases contains certain real estate, equipment, vehicles and office equipment leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Additionally, the Company's leases do not contain material residual value guarantees or material restrictive covenants. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The Company does not account for lease components separately from non-lease components. The discount rate used to calculate present value for both operating and financing leases is Energizer's incremental borrowing rate based on information available at the commencement date, or if available, the rate implicit in the lease. The incremental borrowing rate used is determined based on fully secured borrowings at the time of adoption, or going forward, at the date of lease commencement. Many of these agreements contain options to renew or terminate the lease. For calculating lease liabilities, the Company includes these options within the lease term when it is reasonably certain that the Company will execute such options. Some of the leases include variable payments, which primarily are tied to asset usage or sales rather than an index or rate. As such, these variable payments are not included in the calculation of the Company's lease assets and liabilities. As of September 30, 2020 the amounts for leases included in our Consolidated Balance Sheet include: Balance Sheet Location September 30, 2020 Operating Leases: Operating lease asset $ 121.9 Operating lease liabilities - current 14.8 Operating lease liabilities 111.9 Total Operating Lease Liabilities $ 126.7 Weighted-average remaining lease term (in years) 16.2 Weighted-average discount rate 4.2 % Finance Leases: Property, plant and equipment, net $ 43.9 Current portion of capital leases 1.7 Long-term debt 44.1 Total Finance Lease Liabilities $ 45.8 Weighted Average remaining lease term (in years) 20.4 Weighted-average discount rate 6.7 % The following table presents the components of lease expense: Twelve Months Ended September 30, 2020 Operating lease cost $ 20.4 Finance lease cost: Amortization of assets 3.2 Interest on lease liabilities 3.0 Variable lease costs 3.9 Total lease costs $ 30.5 Supplemental cash and non-cash information related to leases: Twelve Months Ended September 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 19.3 Operating cash flows from finance leases 2.9 Financing cash flows from finance leases 1.4 Non-cash increase in lease assets and lease liabilities: Operating leases (1) (2) $ 88.4 (1) During the first quarter of fiscal 2020, Energizer entered into a material embedded lease agreement which resulted in operating lease asset and lease liabilities of approximately $34. The embedded operating lease commenced on November 1, 2019. During the second quarter of fiscal 2020, Energizer renewed the North America headquarters lease, which resulted in a material lease modification and additional operating lease assets and lease liabilities of approximately $17. During the third quarter of fiscal 2020, a material lease commenced for the Company's new battery distribution and packaging center in North America, resulting in approximately $36 of additional operating lease related assets and lease liabilities. (2) The non-cash increase in operating lease assets and liabilities above does not include the lease assets and lease liabilities recorded due to the ASC 842 implementation on October 1, 2019. Minimum lease payments under operating and finance leases with non-cancellable terms in excess of one year as of September 30, 2020 are as follows: Operating Leases Finance Leases 2021 $ 18.9 $ 4.9 2022 18.1 5.0 2023 16.8 5.0 2024 16.2 4.9 2025 15.4 5.0 Thereafter 97.0 64.3 Total lease payments 182.4 89.1 Less: Imputed interest (55.7) (43.3) Present value of lease liabilities $ 126.7 $ 45.8 |
Goodwill and intangible assets
Goodwill and intangible assets | 12 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | Goodwill and intangible assets Goodwill and intangible assets deemed to have an indefinite life are not amortized, but are reviewed annually for impairment of value or when indicators of a potential impairment are present. As part of our business planning cycle, we performed our annual goodwill impairment testing for our reporting units in the fourth quarter of fiscal 2020. There were no indications of impairment of goodwill noted during this testing or throughout fiscal 2020. The following table represents the change in the carrying amount of goodwill at September 30, 2020 and 2019: Americas International Total Balance at September 30, 2018 $ 228.4 $ 15.8 $ 244.2 Battery acquisition 369.4 125.7 495.1 Auto Care acquisition 263.5 6.6 270.1 Cumulative translation adjustment 0.3 (4.9) (4.6) Balance at September 30, 2019 $ 861.6 $ 143.2 $ 1,004.8 Battery acquisition 0.7 0.2 0.9 Auto Care acquisition 3.8 0.1 3.9 Cumulative translation adjustment (0.3) 6.7 6.4 Balance at September 30, 2020 $ 865.8 $ 150.2 $ 1,016.0 The Company had indefinite-lived intangible assets of $1,365.4 at September 30, 2020 and $1,363.8 at September 30, 2019. The increase was due to foreign currency movement. We completed impairment testing on indefinite-lived intangible assets other than goodwill, which are trademarks/brand names used in our various battery, auto care and lighting product categories. No impairment was indicated as a result of this testing. Future changes in the judgments, assumptions and estimates that are used in our impairment testing including discount rates, revenue growth rates, future operating results and related cash flow projections, could result in significantly different estimates of the fair values in the future. Total intangible assets at September 30, 2020 are as follows: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trademarks and trade names $ 59.7 $ (13.9) $ 45.8 Customer Relationships 394.2 (60.8) 333.4 Patents 34.5 (10.8) 23.7 Proprietary technology 172.5 (37.6) 134.9 Proprietary formulas 2.4 (0.5) 1.9 Non-Compete 0.5 (0.4) 0.1 Vendor relationships 5.0 (1.2) 3.8 Total amortizable intangible assets $ 668.8 $ (125.2) $ 543.6 Trademarks and trade names - indefinite lived 1,365.4 — 1,365.4 Total Other intangible assets, net $ 2,034.2 $ (125.2) $ 1,909.0 Total intangible assets at September 30, 2019 are as follows: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trademarks and trade names $ 59.7 $ (9.9) $ 49.8 Customer Relationships 394.2 (34.3) 359.9 Patents 34.5 (8.2) 26.3 Proprietary technology 172.5 (15.7) 156.8 Proprietary formulas 2.4 (0.3) 2.1 Non-compete 0.5 (0.3) 0.2 Total amortizable intangible assets $ 663.8 $ (68.7) $ 595.1 Trademarks and trade names - indefinite lived 1,363.8 — 1,363.8 Total Other intangible assets, net $ 2,027.6 $ (68.7) $ 1,958.9 Amortizable intangible assets, with a weighted average remaining life of 11.0 years, are amortized on a straight-line basis over expected lives of 3 to 15 years. Amortization expense for intangible assets totaled $56.5, $43.2, and $11.5 for the twelve months ended September 30, 2020, 2019 and 2018, respectively. Estimated amortization expense for amortizable intangible assets at September 30, 2020 is: $57.1 in 2021, $56.9 in 2022, $52.1 in 2023, $50.7 in 2024, and $50.6 in 2025, and $276.2 thereafter. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law. The CARES Act provides, among other things, increased interest deduction limitations to companies which can decrease overall cash taxes paid. The CARES Act had an unfavorable impact to the Company's current fiscal year's provision of $1.8. On December 22, 2017, H.R. 1, formally known as the Tax Cuts and Jobs Act (the Tax Act) was enacted into law. The Tax Act provides for numerous significant tax law changes and modifications with varying effective dates, which include reducing the corporate income tax rate from 35% to 21%, creating a territorial tax system (with a mandatory transition tax on previously deferred foreign earnings) and allowing for immediate capital expensing of certain qualified property. In response to the Tax Act, the Securities and Exchange Commission has issued rules that would 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 (SAB 118). As a result of the reduction of the Federal corporate income tax rate, we have remeasured certain deferred tax assets and liabilities at the rate which they are expected to reverse in the future. The Company has finalized the remeasurement and did not have any adjustments to the $3.0 recorded in fiscal 2018. The mandatory transition tax is based on our total post-1986 earnings and profits (E&P) previously deferred from U.S. income taxes as well as the amount of non-U.S. income tax paid on such earnings. We have completed our accounting for the income tax effect of the mandatory transition tax and recorded a benefit of $0.4 in fiscal 2019 and expense of $36.0 in fiscal 2018, for a total impact of $35.6. The Company has elected to pay its transition tax over the eight year period provided in the Tax Act. The Tax Act also contains new provisions related to Global Intangible Low Taxed Income (GILTI). The Company has completed its analysis of the GILTI tax rules and have made the accounting policy to treat the taxes due from GILTI as a period expense when incurred. In general, it is our practice and intention to permanently reinvest the earnings of our foreign subsidiaries and repatriate earnings only when the tax impact is zero or very minimal and that position has not changed after incurring the transition tax under the Tax Act. No provision has been provided for taxes that would result upon repatriation of our foreign investments to the United States. At September 30, 2020, approximately $780 of basis differential in our investment in foreign affiliates was considered indefinitely invested in those businesses. We estimate that the U.S. federal income tax liability that could potentially arise if indefinitely invested basis of foreign subsidiaries were repatriated in full to the U.S. would be significant. While it is not practicable to calculate a specific potential U.S. tax exposure due to changing statutory rates in foreign jurisdictions over time, as well as other factors, we estimate the potential U.S. tax may be in excess of $165, if all unrealized basis differences were repatriated assuming foreign cash was available to do so. The provisions for income taxes consisted of the following: For the Years Ended September 30, 2020 2019 2018 Current: United States - Federal $ 13.5 $ 1.2 $ 42.5 State 3.0 3.0 0.1 Foreign 39.2 37.5 37.3 Total current $ 55.7 $ 41.7 $ 79.9 Deferred: United States - Federal (29.4) (22.1) 4.5 State (3.1) (4.1) (0.5) Foreign (2.3) (7.1) (2.2) Total deferred $ (34.8) $ (33.3) $ 1.8 Provision for income taxes $ 20.9 $ 8.4 $ 81.7 The source of pre-tax earnings was: For the Years Ended September 30, 2020 2019 2018 United States $ (114.1) $ (139.9) $ 8.7 Foreign 181.8 213.0 166.5 Pre-tax earnings $ 67.7 $ 73.1 $ 175.2 A reconciliation of income taxes with the amounts computed at the statutory federal income tax rate follows: For the Years Ended September 30, 2020 2019 2018 Computed tax at federal statutory rate $ 14.2 21.0 % $ 15.3 21.0 % $ 42.9 24.5 % State income taxes, net of federal tax benefit (0.7) (1.0) (2.3) (3.2) 0.3 0.2 Foreign tax less than the federal rate 2.0 3.0 (9.0) (12.3) 0.7 0.4 Other taxes including repatriation of foreign earnings and GILTI 4.4 6.5 2.2 3.0 2.1 1.2 Foreign tax incentives (3.6) (5.3) (5.3) (7.3) (6.3) (3.6) Uncertain tax positions 2.1 3.1 1.7 2.3 4.1 2.3 Impact of the Tax Act — — (0.4) (0.5) 39.0 22.3 Nondeductible transaction expenses 1.0 1.5 4.8 6.6 — — Other, net 1.5 2.1 1.4 1.9 (1.1) (0.7) Total $ 20.9 30.9 % $ 8.4 11.5 % $ 81.7 46.6 % The Company has been granted two foreign tax incentives providing for a reduced tax rate on profits related to certain battery productions. One incentive expired in December 2019 and the second expires in March 2023. The deferred tax assets and deferred tax liabilities at the end of each year are as follows: September 30, 2020 2019 Deferred tax assets: Accrued liabilities $ 53.4 $ 32.4 Deferred and stock-related compensation 10.9 14.0 Tax loss carryforwards and tax credits 24.7 29.6 Intangible assets 1.9 3.3 Pension plans 17.1 22.1 Inventory differences and other tax assets 15.8 6.6 Operating lease assets 26.8 — Interest expense limited under Sec 163j 54.6 34.8 Gross deferred tax assets 205.2 142.8 Deferred tax liabilities: Depreciation and property differences (24.6) (26.7) Intangible assets (246.9) (249.1) Operating lease liabilities (26.8) — Other tax liabilities (9.9) (2.9) Gross deferred tax liabilities (308.2) (278.7) Valuation allowance (13.1) (11.9) Net deferred tax liabilities $ (116.1) $ (147.8) Future expirations of tax loss carryforwards and tax credits, if not utilized, are $7.8 between fiscal years 2021 and 2024 at September 30, 2020. In addition, there are $13.3 of tax loss carryforwards and credits with no expiration at September 30, 2020. The valuation allowance is primarily attributed to tax loss carryforwards and tax credits outside the U.S. The unrecognized tax benefits activity is summarized below: For the Years Ended September 30, 2020 2019 2018 Unrecognized tax benefits, beginning of year $ 12.8 $ 10.9 $ 9.5 Additions based on current year tax positions and acquisitions 0.1 — — Additions based on prior year tax positions and acquisitions 2.8 2.7 1.4 Reductions for prior year tax positions (0.6) — — Settlements with taxing authorities/statute expirations (0.9) (0.8) — Unrecognized tax benefits, end of year $ 14.2 $ 12.8 $ 10.9 Included in the unrecognized tax benefits noted above are $14.2 of uncertain tax positions that would affect Energizer’s effective tax rate, if recognized. Energizer does not expect any significant increases or decreases to their unrecognized tax benefits within twelve months of this reporting date. In the Consolidated Balance Sheets, unrecognized tax benefits are classified as Other liabilities (non-current) to the extent that payments are not anticipated within one year. Energizer classifies accrued interest and penalties related to unrecognized tax benefits in the income tax provision. The accrued interest and penalties are not included in the table above. Energizer has accrued $5.6 of interest (net of the deferred tax asset of $0.8) and penalties of $4.0 at September 30, 2020, $4.9 of interest (net of the deferred tax asset of $0.7) and penalties of $3.9 at September 30, 2019, and $3.2 of interest (net of the deferred tax asset of $0.4) and penalties of $3.8 at September 30, 2018. Interest was computed on the difference between the tax position recognized in accordance with GAAP and the amount expected to be taken in the Company's tax return. The Company files income tax returns in the U.S. federal jurisdiction, various cities and states, and more than 60 foreign jurisdictions where Energizer has operations. U.S. federal, state and local income tax returns for tax years ended September 30, 2015 and after remain subject to examination by the Internal Revenue Service. There are open examinations in the U.S. and at some of the foreign entities and the status of income tax examinations varies by jurisdiction. At this time, Energizer does not anticipate any material adjustments to its financial statements resulting from tax examinations currently in progress. The Company is contractually indemnified by Spectrum for any tax liability of the Acquired Battery and Auto Care Businesses arising from tax years prior to the acquisitions. The Company is also contractually obligated to pay Spectrum any tax benefit it receives in a tax year after the acquisitions as a result of an indemnification payment made by Spectrum. An indemnification asset and liability, where necessary, has been recorded to reflect this arrangement. The Company has also indemnified VARTA AG for certain tax liabilities that existed as of the divestment date. An indemnification asset, where necessary, has been recorded to reflect these arrangements. |
Earnings per share
Earnings per share | 12 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share Basic earnings per share is based on the average number of common shares outstanding during the period. Diluted earnings per share is based on the average number of shares used for the basic earnings per share calculation, adjusted for the dilutive effect of restricted stock equivalents, performance shares and deferred compensation equity plan. Common shares issuable upon conversion of the Mandatory Convertible Preferred Stock (MCPS) are included in the calculation of diluted earnings per share using the if-converted method and are only included if the conversion would be further dilutive to the calculation. The following table sets forth the computation of basic and diluted earnings per share for the years ended September 30, 2020, 2019 and 2018: For the Years Ended September 30, (in millions, except per share data) 2020 2019 2018 Basic earnings per share Net earnings from continuing operations $ 46.8 $ 64.7 $ 93.5 Mandatory preferred stock dividends (16.2) (12.0) — Net earnings from continuing operations attributable to common shareholders 30.6 52.7 93.5 Net loss from discontinued operations, net of tax (140.1) (13.6) — Net (loss) / earnings attributable to common shareholders $ (109.5) $ 39.1 $ 93.5 Weighted average common shares outstanding - basic 68.8 66.4 59.8 Basic net earnings per common share from continuing operations $ 0.44 $ 0.79 $ 1.56 Basic net loss per common share from discontinued operations (2.03) (0.20) — Basic net earnings per common share $ (1.59) $ 0.59 $ 1.56 Diluted earnings per share Net earnings attributable to common shareholders $ (109.5) $ 39.1 $ 93.5 Weighted average common shares outstanding - basic 68.8 66.4 59.8 Effect of dilutive restricted stock equivalents 0.2 0.3 0.5 Effect of dilutive performance shares 0.4 0.4 0.9 Effect of stock based deferred compensation plan 0.1 0.2 0.2 Weighted average common shares outstanding - diluted 69.5 67.3 61.4 Diluted earnings per common share from continuing operations $ 0.44 $ 0.78 $ 1.52 Diluted loss per common share from discontinued operations (2.02) (0.20) — Diluted net earnings per common share $ (1.58) $ 0.58 $ 1.52 For the year ended September 30, 2020 and 2019, 0.2 million restricted stock equivalents were anti-dilutive and not included in the diluted net earnings per share calculations. For the year ended September 30, 2018, all restricted stock equivalents were dilutive and included in the diluted net earnings per share calculations. Performance based restricted stock equivalents of 1.1, 0.9, and 0.5 were excluded for the years ended September 30, 2020, 2019, and 2018, respectively, as the performance targets for those shares had not been achieved as of the end of the current period. The Company's MCPS were considered anti-dilutive for all periods and excluded for the calculations of diluted earnings/(loss) per share. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity The Company's articles of incorporation authorized 300 million shares of common stock and 10 million shares of preferred stock, each with a par value of $0.01 per share. As of September 30, 2020 and 2019, the Company had 72,386,840 common stock issued. As of September 30, 2020, the Company had approximately 1.9 million shares reserved for issuance under the Equity Incentive Plan and approximately 85,000 shares reserved for issuance under the deferred compensation plan. On July 1, 2015, the Company's Board of Directors approved an authorization for Energizer to acquire up to 7.5 million shares of its common stock. Under this authorization, the Company has repurchased 980,000 shares for $45.0, at an average price of $45.93 per share, 1,036,000 shares for $45.0, at an average price of $43.46 per share, and 1,439,211 shares for $70.0, at an average price of $48.66 per share, during the twelve months ended September 30, 2020, 2019 and 2018. As of September 30, 2020, the Company had approximately 1.8 million shares still authorized under this authorization. Subsequent to year-end, on November 12, 2020, the Board of Directors approved a new share repurchase program for up to 7.5 million shares. This replaced the prior authorization that was outstanding. Future share repurchases, if any, would be made on the open market and the timing and the amount of any purchases will be determined by the Company based on its evaluation of the market conditions, capital allocation objectives, legal and regulatory requirements and other factors. For the twelve months ended September 30, 2020, total dividends declared to shareholders were $84.0, of which $85.4 was paid. The dividends paid included amounts on restricted shares that vested in the period. For the twelve months ended September 30, 2019, total dividends declared to shareholders were $82.4, of which $83.0 was paid. For the twelve months ended September 30, 2018, total dividends declared to shareholders were $72.1 of which $70.0 was paid. The unpaid dividends were associated with unvested restricted shares and were recorded in Other liabilities. Subsequent to the fiscal year end, on November 12, 2020, the Board of Directors declared a dividend for the first quarter of fiscal 2021 of $0.30 per share of common stock, payable on December 18, 2020, to all shareholders of record as of the close of business on November 30, 2020. Series A Mandatory Convertible Preferred Stock - In January 2019, the Company issued 2,156,250 shares of Series A Mandatory Convertible Preferred Stock (MCPS), with a par value of $0.01 per share and liquidation preference of $100.00 per share. There were 2,156,250 preferred shares issued and outstanding as of September 30, 2020, and 2019. Each outstanding share of MCPS will convert automatically on the mandatory conversion date, which is expected to be January 15, 2022, into between 1.7892 and 2.1739 shares of common stock, subject to certain anti-dilution and other adjustments. The number of shares of common stock issuable upon conversion will be determined based on the average VWAP per share of common stock over the 20 consecutive trading day period beginning on, and including, the 21st scheduled trading day immediately prior to January 15, 2022. Dividends on the MCPS will be payable on a cumulative basis at an annual rate of 7.50% of the liquidation preference of $100.00 per share of MCPS, and may be paid in cash or, subject to certain limitations, in shares of common stock, or in any combination of cash and shares of common stock. If declared, dividends on the MCPS will be payable quarterly on January 15, April 15, July 15 and October 15 of each year, commencing on April 15, 2019 and ending on, and including, January 15, 2022. During the twelve months ended September 30, 2020, dividends declared and paid to preferred shareholders were $16.2. The payment included an accrued dividend from fiscal 2019 and the final dividend of fiscal 2020 was recorded in Other liabilities at September 30, 2020 and was paid to the preferred shareholders on October 15, 2020. Subsequent to the end of the fiscal year, on November 12, 2020, the Board of Directors declared a cash dividend of $1.875 per share of MCPS, payable on January 15, 2021, to all shareholders of record as of the close of business January 1, 2021. No dividend or distributions may be declared or paid on shares of common stock, and no common stock shall be, directly or indirectly, purchased, redeemed, or otherwise acquired for consideration by the Company, or any of its subsidiaries, unless all accumulated and unpaid dividends for all preceding dividend periods have been declared and paid upon, or a sufficient sum of cash or number of shares of common stock has been set aside for the payment of such dividends upon, all outstanding shares of MCPS. In connection with the offering of the MCPS, the Company entered into capped call transactions with certain counterparties. The capped call options are expected to reduce potential dilution to the Company’s Common Stock, subject to a cap, upon any conversion of MCPS. The Company paid $9.0 for the capped call transactions which reduced the net proceeds received from the MCPS. |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Payments | Share-Based Payments The Board of Directors adopted the Energizer Holdings, Inc. Equity Incentive Plan (the 2015 Plan) on July 1, 2015, upon completion of the Spin-off. Under the terms of the Plan, stock options, restricted stock awards, restricted stock equivalents, stock appreciation rights and performance-based stock awards may be granted to directors, officers and employees of the Company. The Plan authorizes a maximum number of 10 million common shares to be awarded. On January 27, 2020, the Company's shareholders approved the Energizer Holdings, Inc. Omnibus Incentive Plan (Omnibus Plan). The Omnibus Plan replaces and supersedes the 2015 Plan. No new awards will be issued under the 2015 Plan, though the terms of the 2015 Plan will continue to govern all awards granted under that plan. The Omnibus Plan authorizes 6.5 million shares to be awarded, as well as the 0.3 million shares that were still available for grant under the 2015 Plan. Under the Omnibus Plan, stock options, stock appreciation rights, restricted stock and restricted stock units (time-based or performance-based), other stock awards and cash-based awards may be granted to directors, officers and employees of the Company. For purposes of determining the number of shares available for future issuance under the Omnibus Plan, awards other than stock options and stock appreciation rights, will reduce the shares available for future issuance by two for every one share awarded. Stock options and stock appreciation rights reduce the shares available for future issuance on a one-for-one basis. At September 30, 2020, there were 6.9 million shares available for future awards under the Plan. Total compensation cost charged against income for Energizer’s share-based compensation arrangements was $24.5, $27.1 and $28.2 for the years ended September 30, 2020, 2019 and 2018, respectively, and was recorded in SG&A expense. The total income tax benefit recognized in the Consolidated Statements of Earnings and Comprehensive Income for share-based compensation arrangements was $4.7, $5.8 and $7.8 for the years ended September 30, 2020, 2019 and 2018, respectively. Restricted Stock Equivalents (RSE) In November 2016, the Company granted RSE awards to a group of key employees which included approximately 92,000 shares that vest ratably over four years. The closing stock price on the date of the grant used to determine the award fair value was $43.84. In November 2017, the Company granted RSE awards to a group of key employees which included approximately 100,000 shares that vest ratably over four years and granted RSE awards to a group of key executives of approximately 68,000 shares that vest on the third anniversary of the date of grant. In addition, the Company granted approximately 238,000 performance shares to a group of key employees and key executives that will vest subject to meeting target amounts for both cumulative adjusted earnings per share and cumulative free cash flow as a percentage of sales over the three year performance period. These performance measures are equally weighted in determining the final share award with the maximum award payout of approximately 476,000 shares. The closing stock price on the date of the grant used to determine the award fair value was $44.20. In November 2018, the Company granted RSE awards to a group of key employees which included approximately 73,000 shares that vest ratably over four years and granted RSE awards to a group of key executives of approximately 55,000 shares that vest on the third anniversary of the date of grant. In addition, the Company granted approximately 190,000 performance shares to a group of key employees and key executives that will vest subject to meeting target amounts for both cumulative adjusted earnings per share and cumulative free cash flow as a percentage of sales over the three year performance period. These performance measures are equally weighted in determining the final share award with the maximum award payout of approximately 380,000 shares. The closing stock price on the date of the grant used to determine the award fair value was $60.25. In November 2019, the Company granted RSE awards to a group of key employees of approximately 134,000 shares that vest ratably over four years and granted RSE awards to a group of key executives of approximately 81,000 shares that vest on the third anniversary of the date of grant. In addition, the Company granted approximately 306,000 performance shares to a group of key employees and key executives that will vest subject to meeting target amounts for both cumulative adjusted earnings per share and cumulative free cash flow as a percentage of sales over the three year performance period. These performance measures are equally weighted in determining the final share award with the maximum award payout of approximately 612,000 shares. The closing stock price on the date of the grant used to determine the award fair value was $43.10. The following table summarizes the Company's RSE activity during the current fiscal year (shares in millions): Shares Weighted-Average Nonvested RSE at October 1, 2019 1.8 $ 47.70 Granted 0.9 $ 43.28 Vested (0.7) $ 42.70 Canceled (0.1) $ 46.66 Nonvested RSE at September 30, 2020 1.9 $ 47.56 As of September 30, 2020, there was an estimated $15.2 of total unrecognized compensation costs related to the outstanding RSE awards, which will be recognized over a weighted-average period of 1.2 years. The weighted average estimated fair value for RSE awards granted in fiscal 2020 was $36.8. The estimated fair value of RSE awards that vested in fiscal 2020 was $34.0. Subsequent to year-end, in November 2020, the Company granted RSE awards to a group of key employees of approximately 120,000 shares that vest ratably over four years and granted RSE awards to a group of key executives of approximately 71,000 shares that vest on the third anniversary of the date of grant. In addition, the Company granted approximately 272,000 performance shares to a group of key employees and key executives that will vest subject to meeting target amounts for both cumulative adjusted earnings per share and cumulative free cash flow as a percentage of sales over the three year performance period. These performance measures are equally weighted in determining the final share award with the maximum award payout of approximately 544,000 shares. The closing stock price on the date of the grant used to determine the award fair value was $42.98. |
Pension Plans
Pension Plans | 12 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Pension Plans | Pension Plans The Company has several defined benefit pension plans covering many of its employees in the U.S. and certain employees in other countries. The plans provide retirement benefits based on various factors including years of service and in certain circumstances, earnings. Most plans are now frozen to new entrants and for additional service. During fiscal year 2019, the Company completed the termination procedures with the Trustees of its Ireland pension plan. The Company has no remaining obligations or risks related to this pension plan. This resulted in a plan settlement to the projected benefit obligation of $8.6 and plan assets of $11.4 and a settlement loss of $3.7 recorded to Other items, net on the Consolidated Statement of Earnings and Comprehensive Income. During fiscal year 2018, the Company received approval from the Financial Services Commission of Ontario to terminate its Canadian pension plan. The Company purchased annuity contracts for its participants and transferred the liability to an insurance provider. This resulted in a plan settlement to the projected benefit obligation and plan assets of $36.9 and a settlement loss of $14.1 recorded to Other items, net on the Consolidated Statement of Earnings and Comprehensive Income. The Company also sponsors or participates in a number of other non-U.S. pension 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 in the following tables. The following tables present the benefit obligation, plan assets and funded status of the plans: September 30, U.S. International 2020 2019 2020 2019 Change in Projected Benefit Obligation Benefit obligation at beginning of year $ 531.3 $ 494.5 $ 145.8 $ 142.6 Service cost — — 0.8 0.5 Interest cost 15.9 20.4 1.5 2.9 Actuarial loss/(gain) 31.3 52.2 (2.2) 22.2 Benefits paid (37.4) (35.8) (4.9) (5.3) Plan settlements — — (2.3) (10.7) Foreign currency exchange rate changes — — 9.7 (6.4) Projected Benefit Obligation at end of year $ 541.1 $ 531.3 $ 148.4 $ 145.8 Change in Plan Assets Estimated fair value of plan assets at beginning of year $ 463.5 $ 456.0 $ 122.8 $ 131.6 Actual return on plan assets 62.8 40.8 0.2 12.6 Company contributions 2.8 2.5 1.1 3.3 Plan settlements — — (2.3) (13.5) Benefits paid (37.4) (35.8) (4.9) (5.3) Foreign currency exchange rate changes — — 7.6 (5.9) Estimated fair value of plan assets at end of year $ 491.7 $ 463.5 $ 124.5 $ 122.8 Funded status at end of year $ (49.4) $ (67.8) $ (23.9) $ (23.0) The following table presents the amounts recognized in the Consolidated Balance Sheets and Consolidated Statements of Shareholders’ Equity: September 30, U.S. International Amounts Recognized in the Consolidated Balance Sheets 2020 2019 2020 2019 Noncurrent assets $ — $ — $ 10.4 $ 12.1 Current liabilities (2.4) (2.4) (0.6) (0.6) Noncurrent liabilities (47.0) (65.4) (33.7) (34.5) Net amount recognized $ (49.4) $ (67.8) $ (23.9) $ (23.0) Amounts Recognized in Accumulated Other Comprehensive Loss Net loss, pre tax $ (169.1) $ (182.7) $ (42.9) $ (40.9) Pre-tax changes recognized in other comprehensive loss for the year ended September 30, 2020 are as follows: Changes in plan assets and benefit obligations recognized in other comprehensive (loss)/income U.S. International Net gain/(loss) arising during the year $ 7.1 $ (1.1) Effect of exchange rates — (2.9) Amounts recognized as a component of net periodic benefit cost Amortization or settlement recognition of net gain 6.5 2.0 Total gain recognized in other comprehensive loss $ 13.6 $ (2.0) Energizer expects to contribute $2.4 to its U.S. plans and $2.0 to its International plans in fiscal 2021. Energizer’s expected future benefit payments for the plans are as follows: For The Years Ending September 30, U.S. International 2021 $ 38.2 $ 5.6 2022 38.4 5.5 2023 37.9 5.4 2024 38.1 5.5 2025 36.2 5.7 2026 to 2030 163.4 29.2 The accumulated benefit obligation for the US plans was $541.1 and $531.3 and for the foreign plans was $146.0 and $143.7 at September 30, 2020 and 2019, respectively. The following table shows the plans with an accumulated benefit obligation in excess of plan assets at the dates indicated. September 30, U.S. International 2020 2019 2020 2019 Projected benefit obligation $ 541.1 $ 531.3 $ 74.6 $ 73.5 Accumulated benefit obligation 541.1 531.3 72.2 71.4 Estimated fair value of plan assets 491.7 463.5 40.3 38.5 Pension plan assets in the U.S. plan represent approximately 80% of assets in all of the Company's defined benefit pension plans. Investment policy for the U.S. plan includes a mandate to diversify assets and invest in a variety of assets classes to achieve that goal. The U.S. plan's assets are currently invested in several funds representing most standard equity and debt security classes. The broad target allocations are approximately: (a) equities, including U.S. and foreign: 40%, and (b) debt securities, including U.S. bonds: 60%. Actual allocations at September 30, 2020 approximated these targets. The U.S. plan held no shares of Company common stock at September 30, 2020. Investment objectives are similar for non-U.S. pension arrangements, subject to local requirements. The following table presents plan pension expense: For the Years Ended September 30, U.S. International 2020 2019 2018 2020 2019 2018 Service cost $ — $ — $ — $ 0.8 $ 0.5 $ 0.6 Interest cost 15.9 20.4 18.7 1.5 2.9 3.9 Expected return on plan assets (24.3) (26.2) (30.1) (3.6) (4.9) (6.3) Recognized net actuarial loss 6.5 4.1 4.4 1.5 0.9 2.0 Settlement loss on Canadian pension plan termination — — — — — 14.1 Settlement loss on Ireland pension plan termination — — — — 3.7 — Settlement loss recognized on other pension plans — — 0.1 0.5 0.4 1.0 Net periodic (benefit)/expense $ (1.9) $ (1.7) $ (6.9) $ 0.7 $ 3.5 $ 15.3 The service cost component of the net periodic (benefit)/expense above is recorded in Selling, general and administrative expense (SG&A) on the Consolidated Statement of Earnings and Comprehensive Income, while the remaining components are recorded to Other items, net. Amounts expected to be amortized from accumulated other comprehensive loss into net period benefit cost during the year ending September 30, 2021 are net actuarial losses of $7.4 for the U.S. Plan and $1.4 for the International plans. The following table presents assumptions, which reflect weighted averages for the component plans, used in determining the above information: September 30, U.S. International 2020 2019 2018 2020 2019 2018 Plan obligations: Discount rate 2.5 % 3.1 % 4.3 % 1.0 % 1.6 % 2.1 % Compensation increase rate — — — 2.1 % 2.1 % 2.1 % Net periodic benefit cost: Discount rate 3.1 % 4.3 % 3.7 % 1.0 % 2.1 % 2.1 % Expected long-term rate of return on plan assets 5.6 % 5.9 % 6.6 % 2.8 % 3.8 % 3.8 % Compensation increase rate — — — 2.1 % 2.1 % 2.4 % The following tables set forth the estimated fair value of Energizer’s plan assets as of September 30, 2020 and 2019 segregated by level within the estimated fair value hierarchy. Refer to Note 17, Financial Instruments and Risk Management, for further discussion on the estimated fair value hierarchy and estimated fair value principles. ASSETS AT ESTIMATED FAIR VALUE At September 30, 2020 U.S. Pension International Pension Level 1 Level 2 Total Level 1 Level 2 Total EQUITY U.S. Equity $ 57.8 $ — $ 57.8 $ — $ — $ — International Equity 2.4 — 2.4 — 9.8 9.8 DEBT U.S. Government — 278.1 278.1 — — — Other Government — 18.9 18.9 — 22.5 22.5 Corporate — — — — — — CASH & CASH EQUIVALENTS — — — — 0.4 0.4 OTHER — 7.3 7.3 — 7.7 7.7 Assets Measured at Net Asset Value U.S. Equity 77.6 — International Equity 49.6 21.1 Corporate — 45.2 Other — 17.8 TOTAL $ 60.2 $ 304.3 $ 491.7 $ — $ 40.4 $ 124.5 At September 30, 2019 U.S. Pension International Pension Level 1 Level 2 Total Level 1 Level 2 Total EQUITY U.S. Equity $ 66.0 $ — $ 66.0 $ — $ — $ — International Equity 3.1 — 3.1 — 8.7 8.7 DEBT U.S. Government — 276.2 276.2 — — — Other Government — 1.8 1.8 — 9.0 9.0 Corporate — — — — 30.2 30.2 CASH & CASH EQUIVALENTS — — — — 2.5 2.5 OTHER — 6.8 6.8 — 5.8 5.8 Assets measured at Net Asset Value U.S. Equity 64.6 — International Equity 45.0 28.9 Corporate — 37.7 TOTAL $ 69.1 $ 284.8 $ 463.5 $ — $ 56.2 $ 122.8 There were no Level 3 pension assets at September 30, 2020 and 2019. The investment objective for plan assets is to satisfy the current and future pension benefit obligations. The investment philosophy is to achieve this objective through diversification of the retirement plan assets. The goal is to earn a suitable return with an appropriate level of risk while maintaining adequate liquidity to distribute benefit payments. The diversified asset allocation includes equity positions, as well as fixed income investments. The increased volatility associated with equities is offset with higher expected returns, while the long duration fixed income investments help dampen the volatility of the overall portfolio. Risk exposure is controlled by re-balancing the retirement plan assets back to target allocations, as needed. Investment firms managing retirement plan assets carry out investment policy within their stated guidelines. Investment performance is monitored against benchmark indices, which reflect the policy and target allocation of the retirement plan assets. |
Defined Contribution Plan
Defined Contribution Plan | 12 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Defined Contribution Plan | Pension Plans The Company has several defined benefit pension plans covering many of its employees in the U.S. and certain employees in other countries. The plans provide retirement benefits based on various factors including years of service and in certain circumstances, earnings. Most plans are now frozen to new entrants and for additional service. During fiscal year 2019, the Company completed the termination procedures with the Trustees of its Ireland pension plan. The Company has no remaining obligations or risks related to this pension plan. This resulted in a plan settlement to the projected benefit obligation of $8.6 and plan assets of $11.4 and a settlement loss of $3.7 recorded to Other items, net on the Consolidated Statement of Earnings and Comprehensive Income. During fiscal year 2018, the Company received approval from the Financial Services Commission of Ontario to terminate its Canadian pension plan. The Company purchased annuity contracts for its participants and transferred the liability to an insurance provider. This resulted in a plan settlement to the projected benefit obligation and plan assets of $36.9 and a settlement loss of $14.1 recorded to Other items, net on the Consolidated Statement of Earnings and Comprehensive Income. The Company also sponsors or participates in a number of other non-U.S. pension 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 in the following tables. The following tables present the benefit obligation, plan assets and funded status of the plans: September 30, U.S. International 2020 2019 2020 2019 Change in Projected Benefit Obligation Benefit obligation at beginning of year $ 531.3 $ 494.5 $ 145.8 $ 142.6 Service cost — — 0.8 0.5 Interest cost 15.9 20.4 1.5 2.9 Actuarial loss/(gain) 31.3 52.2 (2.2) 22.2 Benefits paid (37.4) (35.8) (4.9) (5.3) Plan settlements — — (2.3) (10.7) Foreign currency exchange rate changes — — 9.7 (6.4) Projected Benefit Obligation at end of year $ 541.1 $ 531.3 $ 148.4 $ 145.8 Change in Plan Assets Estimated fair value of plan assets at beginning of year $ 463.5 $ 456.0 $ 122.8 $ 131.6 Actual return on plan assets 62.8 40.8 0.2 12.6 Company contributions 2.8 2.5 1.1 3.3 Plan settlements — — (2.3) (13.5) Benefits paid (37.4) (35.8) (4.9) (5.3) Foreign currency exchange rate changes — — 7.6 (5.9) Estimated fair value of plan assets at end of year $ 491.7 $ 463.5 $ 124.5 $ 122.8 Funded status at end of year $ (49.4) $ (67.8) $ (23.9) $ (23.0) The following table presents the amounts recognized in the Consolidated Balance Sheets and Consolidated Statements of Shareholders’ Equity: September 30, U.S. International Amounts Recognized in the Consolidated Balance Sheets 2020 2019 2020 2019 Noncurrent assets $ — $ — $ 10.4 $ 12.1 Current liabilities (2.4) (2.4) (0.6) (0.6) Noncurrent liabilities (47.0) (65.4) (33.7) (34.5) Net amount recognized $ (49.4) $ (67.8) $ (23.9) $ (23.0) Amounts Recognized in Accumulated Other Comprehensive Loss Net loss, pre tax $ (169.1) $ (182.7) $ (42.9) $ (40.9) Pre-tax changes recognized in other comprehensive loss for the year ended September 30, 2020 are as follows: Changes in plan assets and benefit obligations recognized in other comprehensive (loss)/income U.S. International Net gain/(loss) arising during the year $ 7.1 $ (1.1) Effect of exchange rates — (2.9) Amounts recognized as a component of net periodic benefit cost Amortization or settlement recognition of net gain 6.5 2.0 Total gain recognized in other comprehensive loss $ 13.6 $ (2.0) Energizer expects to contribute $2.4 to its U.S. plans and $2.0 to its International plans in fiscal 2021. Energizer’s expected future benefit payments for the plans are as follows: For The Years Ending September 30, U.S. International 2021 $ 38.2 $ 5.6 2022 38.4 5.5 2023 37.9 5.4 2024 38.1 5.5 2025 36.2 5.7 2026 to 2030 163.4 29.2 The accumulated benefit obligation for the US plans was $541.1 and $531.3 and for the foreign plans was $146.0 and $143.7 at September 30, 2020 and 2019, respectively. The following table shows the plans with an accumulated benefit obligation in excess of plan assets at the dates indicated. September 30, U.S. International 2020 2019 2020 2019 Projected benefit obligation $ 541.1 $ 531.3 $ 74.6 $ 73.5 Accumulated benefit obligation 541.1 531.3 72.2 71.4 Estimated fair value of plan assets 491.7 463.5 40.3 38.5 Pension plan assets in the U.S. plan represent approximately 80% of assets in all of the Company's defined benefit pension plans. Investment policy for the U.S. plan includes a mandate to diversify assets and invest in a variety of assets classes to achieve that goal. The U.S. plan's assets are currently invested in several funds representing most standard equity and debt security classes. The broad target allocations are approximately: (a) equities, including U.S. and foreign: 40%, and (b) debt securities, including U.S. bonds: 60%. Actual allocations at September 30, 2020 approximated these targets. The U.S. plan held no shares of Company common stock at September 30, 2020. Investment objectives are similar for non-U.S. pension arrangements, subject to local requirements. The following table presents plan pension expense: For the Years Ended September 30, U.S. International 2020 2019 2018 2020 2019 2018 Service cost $ — $ — $ — $ 0.8 $ 0.5 $ 0.6 Interest cost 15.9 20.4 18.7 1.5 2.9 3.9 Expected return on plan assets (24.3) (26.2) (30.1) (3.6) (4.9) (6.3) Recognized net actuarial loss 6.5 4.1 4.4 1.5 0.9 2.0 Settlement loss on Canadian pension plan termination — — — — — 14.1 Settlement loss on Ireland pension plan termination — — — — 3.7 — Settlement loss recognized on other pension plans — — 0.1 0.5 0.4 1.0 Net periodic (benefit)/expense $ (1.9) $ (1.7) $ (6.9) $ 0.7 $ 3.5 $ 15.3 The service cost component of the net periodic (benefit)/expense above is recorded in Selling, general and administrative expense (SG&A) on the Consolidated Statement of Earnings and Comprehensive Income, while the remaining components are recorded to Other items, net. Amounts expected to be amortized from accumulated other comprehensive loss into net period benefit cost during the year ending September 30, 2021 are net actuarial losses of $7.4 for the U.S. Plan and $1.4 for the International plans. The following table presents assumptions, which reflect weighted averages for the component plans, used in determining the above information: September 30, U.S. International 2020 2019 2018 2020 2019 2018 Plan obligations: Discount rate 2.5 % 3.1 % 4.3 % 1.0 % 1.6 % 2.1 % Compensation increase rate — — — 2.1 % 2.1 % 2.1 % Net periodic benefit cost: Discount rate 3.1 % 4.3 % 3.7 % 1.0 % 2.1 % 2.1 % Expected long-term rate of return on plan assets 5.6 % 5.9 % 6.6 % 2.8 % 3.8 % 3.8 % Compensation increase rate — — — 2.1 % 2.1 % 2.4 % The following tables set forth the estimated fair value of Energizer’s plan assets as of September 30, 2020 and 2019 segregated by level within the estimated fair value hierarchy. Refer to Note 17, Financial Instruments and Risk Management, for further discussion on the estimated fair value hierarchy and estimated fair value principles. ASSETS AT ESTIMATED FAIR VALUE At September 30, 2020 U.S. Pension International Pension Level 1 Level 2 Total Level 1 Level 2 Total EQUITY U.S. Equity $ 57.8 $ — $ 57.8 $ — $ — $ — International Equity 2.4 — 2.4 — 9.8 9.8 DEBT U.S. Government — 278.1 278.1 — — — Other Government — 18.9 18.9 — 22.5 22.5 Corporate — — — — — — CASH & CASH EQUIVALENTS — — — — 0.4 0.4 OTHER — 7.3 7.3 — 7.7 7.7 Assets Measured at Net Asset Value U.S. Equity 77.6 — International Equity 49.6 21.1 Corporate — 45.2 Other — 17.8 TOTAL $ 60.2 $ 304.3 $ 491.7 $ — $ 40.4 $ 124.5 At September 30, 2019 U.S. Pension International Pension Level 1 Level 2 Total Level 1 Level 2 Total EQUITY U.S. Equity $ 66.0 $ — $ 66.0 $ — $ — $ — International Equity 3.1 — 3.1 — 8.7 8.7 DEBT U.S. Government — 276.2 276.2 — — — Other Government — 1.8 1.8 — 9.0 9.0 Corporate — — — — 30.2 30.2 CASH & CASH EQUIVALENTS — — — — 2.5 2.5 OTHER — 6.8 6.8 — 5.8 5.8 Assets measured at Net Asset Value U.S. Equity 64.6 — International Equity 45.0 28.9 Corporate — 37.7 TOTAL $ 69.1 $ 284.8 $ 463.5 $ — $ 56.2 $ 122.8 There were no Level 3 pension assets at September 30, 2020 and 2019. The investment objective for plan assets is to satisfy the current and future pension benefit obligations. The investment philosophy is to achieve this objective through diversification of the retirement plan assets. The goal is to earn a suitable return with an appropriate level of risk while maintaining adequate liquidity to distribute benefit payments. The diversified asset allocation includes equity positions, as well as fixed income investments. The increased volatility associated with equities is offset with higher expected returns, while the long duration fixed income investments help dampen the volatility of the overall portfolio. Risk exposure is controlled by re-balancing the retirement plan assets back to target allocations, as needed. Investment firms managing retirement plan assets carry out investment policy within their stated guidelines. Investment performance is monitored against benchmark indices, which reflect the policy and target allocation of the retirement plan assets. |
Debt
Debt | 12 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt The detail of long-term debt was as follows: September 30, 2020 2019 Senior Secured Term Loan A Facility due 2021 $ — $ 77.5 Senior Secured Term Loan B Facility due 2025 313.5 982.5 Senior Secured Term Loan A Facility due 2022 319.4 — 5.50% Senior Notes due 2025 — 600.0 6.375% Senior Notes due 2026 750.0 500.0 4.625% Senior Notes due 2026 (Euro Notes of €650.0) 761.9 708.4 7.750% Senior Notes due 2027 600.0 600.0 4.750% Senior Notes due 2028 600.0 — 4.375% Senior Notes due 2029 800.0 — Capital lease obligations 45.8 46.9 Total gross long-term debt, including current maturities $ 4,190.6 $ 3,515.3 Less current portion (843.0) (1.6) Less unamortized debt discount and debt issuance fees (40.7) (52.1) Total long-term debt $ 3,306.9 $ 3,461.6 Revolving Credit Facility - On December 17, 2018, the Company entered into a credit agreement which provided for a 5-year $400.0 revolving credit facility (2018 Revolving Credit Facility) and which provided for a $200.0 3-year term loan A facility and $1,000.0 7-year term loan B facility (Term Loan Agreement). On December 27, 2019, the Company amended the existing Term Loan Agreement and refinanced $365.0 of term loan debt. The amendment established a new $365.0 Term Loan A facility due December 2022, which was used to pay down $300.0 of the existing Term Loan B facility due in 2025 and $65.0 of the existing Term Loan A facility due in 2021. The pay down of the Term Loan B facility was deemed to be an extinguishment and the Company recorded a Loss on extinguishment of debt of $4.2 during the first quarter. The Company utilized the available proceeds from the Varta Divestiture and the related hedging arrangements to pay down $345.8 of the borrowings outstanding on the Term Loan B facility due in 2025. The borrowings under the Term Loan A require quarterly principal payments at a rate of 6.25% of the original principal balance, or $22.8. The borrowings under the Term Loan B require quarterly payments at a rate of 0.25% of the original principal balance, or $2.5. The borrowings bear interest at a rate per annum equal to, at the option of the Company, LIBOR or the Base Rate (as defined) plus the applicable margin based on total Company leverage. The 2018 Revolving Credit Facility also contains customary affirmative and restrictive covenants. Obligations under the 2018 Revolving Credit Facility and Term Loan A and Term Loan B are jointly and severally guaranteed by certain of its existing and future direct and indirectly wholly-owned U.S. subsidiaries. There is a first priority perfected lien on substantially all of the assets and property of the Company and guarantors and proceeds therefrom excluding certain excluded assets. As of September 30, 2020, there were no borrowings outstanding under the 2018 Revolving Credit Facility, but the Company did have $7.3 of outstanding letters of credit. Taking into account outstanding letters of credit, $392.7 remained available as of September 30, 2020. As of September 30, 2020 and September 30, 2019, our weighted average interest rate on short-term borrowings was 6.7% and 3.8%, respectively. Subsequent to September 30, 2020, the Company paid down $120.0 on Term loan B and $42.8 on Term loan A, which included the required quarterly payments. Senior Notes - On April 22, 2020, the Company finalized an add-on offering of $250.0 of our 6.375% Senior Notes due 2026 (2026 Notes Add-On). The 2026 Notes Add-On priced at 102.25% of the principal amount. The Company used the net proceeds from the offering to repay indebtedness outstanding under its Revolving Credit Facility and to pay fees and expenses related to the offering. The 2026 Notes Add-On was offered to qualified institutional buyers and will not be registered under federal or applicable state securities laws. Interest is payable semi-annually on the 2026 Notes in January and July. On July 1, 2020, the Company completed a bond offering for $600.0 Senior Notes due in 2028 at 4.750% (2028 Notes). The Company utilized a portion of the net proceeds from the sale of the 2028 Notes to fund the purchase of $488.8 in aggregate principal amount of the Company’s outstanding 5.50% Senior Notes due 2025 (2025 Notes) accepted for purchase pursuant to a cash tender offer. The Company used the remaining net proceeds from such sale, together with cash on hand, to fund the redemption of 2025 Notes not purchased pursuant to the tender offer, at a redemption price equal to 102.750% of the aggregate principal amount of the 2025 Notes to be redeemed, plus accrued and unpaid interest thereon to, but excluding, the redemption date. As a result of such redemption, all 2025 Notes that were not tendered and purchased by the Company pursuant to the tender offer were redeemed. The Company paid a total call premium for tendered and called notes of $18.3. The transaction resulted in a Loss on extinguishment of debt of $22.1. The 2028 Notes were sold to qualified institutional buyers and will not be registered under federal or applicable state securities laws. Interest is payable semi-annually on the 2028 Notes in December and June. The 2028 Notes are jointly and severally guaranteed on an unsecured basis by certain of the Company's domestic restricted subsidiaries that guarantee indebtedness of the Company under its 2018 Revolving Credit Facility. On September 30, 2020, the Company completed a bond offering for $800.0 Senior Notes due in 2029 at 4.375% (2029 Notes). Subsequent to the fiscal year, on October 16, 2020, the Company used the proceeds from the sale of the 2029 Notes to fund the redemption of all the $750.0 USD Senior Notes due in 2026 at 6.375% (2026 USD Notes). Due to the timing of the transaction crossing fiscal years and the Company's obligation to redeem the 2026 USD Notes, the 2026 USD Notes were classified as Current maturities of long term debt and the proceeds from the 2029 Notes, net of financing fees paid, were classified as Restricted cash on the Consolidated Balance Sheet at September 30, 2020. The company paid a redemption premium of $55.9 in fiscal 2021, and the transaction resulted in a Loss on extinguishment of debt of $68.6. The 2029 Notes were sold to qualified institution buyers and will not be registered under federal or applicable state securities laws. Interest is payable semi-annually on the 2029 Notes in March and September. The 2029 Notes are jointly and severally guaranteed on an unsecured basis by certain of the Company's domestic restricted subsidiaries that guarantee indebtedness of the Company under its 2018 Revolving Credit Facility. Debt issuance fees paid related to the term loan refinancing and Senior Note offerings were $26.5 during the twelve months ended September 30, 2020. The Company wrote-off a total of $20.7 of debt issuance fees as a result of the extinguishment activity during the year. Interest Rate Swaps - In March 2017, the Company entered into an interest rate swap agreement with one major financial institution that fixed the variable benchmark component (LIBOR) on $200.0 of Energizer's variable rate debt through June 2022 at an interest rate of 2.03%. In February 2018, the Company entered into a forward starting interest rate swap with an effective date of October 1, 2018, with one major financial institution that fixed the variable benchmark component (LIBOR) on additional variable rate debt at an interest rate of 2.47%. At the effective date, the swap had a notional value of $400.0. Beginning April 1, 2019, the notional amount decreases $50.0 each quarter, and continues to decrease until its termination date of December 31, 2020. The notional value of the swap was $100.0 at September 30, 2020. Notes Payable - The notes payable balance was $3.8 at September 30, 2020 and $31.9 at September 30, 2019. The 2020 balance is comprised of $3.8 of other borrowings, including those from foreign affiliates. The 2019 balance consists of $25.0 outstanding borrowings on the 2018 Revolving Credit Facility as well as $6.9 of other borrowings, including those from foreign affiliates. Debt Covenants - The agreements governing the Company's debt contain certain customary representations and warranties, affirmative, negative and financial covenants, and provisions relating to events of default. If the Company fails to comply with these covenants or with other requirements of these credit agreements, the lenders may have the right to accelerate the maturity of the debt. Acceleration under one of these facilities would trigger cross defaults to other borrowings. As of September 30, 2020, the Company was, and expects to remain, in compliance with the provisions and covenants associated with its debt agreements. The counterparties to long-term committed borrowings consist of a number of major financial institutions. The Company consistently monitors positions with, and credit ratings of, counterparties both internally and by using outside ratings agencies. Debt Maturities - Aggregate maturities of long-term debt as of September 30, 2020 were as follows: Long-term debt 2021 $ 841.3 2022 91.3 2023 141.9 2024 10.0 2025 10.0 Thereafter 3,050.3 Total long-term debt payments due $ 4,144.8 |
Financial Instruments and Risk
Financial Instruments and Risk Management | 12 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Risk Management | Financial Instruments and Risk Management The market risk inherent in the Company's operations creates potential earnings volatility arising from changes in currency rates, interest rates and commodity prices. The Company's policy allows derivatives to be used only for identifiable exposures and, therefore, the Company does not enter into hedges for trading or speculative purposes where the sole objective is to generate profits. Concentration of Credit Risk – The counterparties to derivative contracts consist of a number of major financial institutions and are generally institutions with which the Company maintains lines of credit. The Company does not enter into derivative contracts through brokers nor does it trade derivative contracts on any other exchange or over-the-counter markets. Risk of currency positions and mark-to-market valuation of positions are strictly monitored at all times. The Company continually monitors positions with, and credit ratings of, counterparties both internally and by using outside rating agencies. While nonperformance by these counterparties exposes Energizer to potential credit losses, such losses are not anticipated. The Company sells to a large number of customers primarily in the retail trade, including those in mass merchandising, drugstore, supermarket and other channels of distribution throughout the world. Wal-Mart Stores, Inc. accounted for 14.1%, 13.8%, and 11.5% of total net sales in fiscal 2020, 2019 and 2018, respectively, primarily in North America. The Company performs ongoing evaluations of its customers’ financial condition and creditworthiness, but does not generally require collateral. While the competitiveness of the retail industry presents an inherent uncertainty, the Company does not believe a significant risk of loss from a concentration of credit risk exists with respect to accounts receivable. In the ordinary course of business, the Company enters into contractual arrangements (derivatives) to reduce its exposure to commodity price and foreign currency risks. The section below outlines the types of derivatives that existed at September 30, 2020 and 2019, as well as the Company's objectives and strategies for holding these derivative instruments. Commodity Price Risk – The Company uses raw materials that are subject to price volatility. At times, the Company uses hedging instruments to reduce exposure to variability in cash flows associated with future purchases of certain materials and commodities. Foreign Currency Risk – A significant portion of Energizer’s product cost is more closely tied to the U.S. dollar than to the local currencies in which the product is sold. As such, a weakening of currencies relative to the U.S. dollar results in margin declines unless mitigated through pricing actions, which are not always available due to the economic or competitive environment. Conversely, a strengthening in currencies relative to the U.S. dollar can improve margins. The primary currencies to which Energizer is exposed include the Euro, the British pound, the Canadian dollar and the Australian dollar. However, the Company also has significant exposures in many other currencies which, in the aggregate, may have a material impact on the Company's operations. Additionally, Energizer’s foreign subsidiaries enter into internal and external transactions that create nonfunctional currency balance sheet positions at the foreign subsidiary level. These exposures are generally the result of intercompany purchases, intercompany loans and, to a lesser extent, external purchases, and are revalued in the foreign subsidiary’s local currency at the end of each period. Changes in the value of the non-functional currency balance sheet positions in relation to the foreign subsidiary’s local currency results in a transaction gain or loss recorded in Other items, net on the Consolidated Statements of Earnings and Comprehensive Income. The primary currency to which Energizer’s foreign subsidiaries are exposed is the U.S. dollar. Interest Rate Risk – Energizer has interest rate risk with respect to interest expense on variable rate debt. At September 30, 2020, Energizer had variable rate debt outstanding with a principal balance of $632.9 under the 2019 and 2018 Term Loans and the 2018 Revolving Credit Facility. In March 2017, the Company entered into an interest rate swap agreement (2017 Interest rate swap) with one major financial institution that fixed the variable benchmark component (LIBOR) on $200.0 of Energizer's variable rate debt through June 2022 at an interest rate of 2.03%. In February 2018, the Company entered into a forward starting interest rate swap (2018 Interest rate swap) with an effective date of October 1, 2018, with one major financial institution that fixed the variable benchmark component (LIBOR) on additional variable rate debt of $400.0 at an interest rate of 2.47%. Beginning April 1, 2019, the notional amount decreases $50.0 each quarter, and continues to decrease until its termination date of December 31, 2020. The notional value of the swap was $100.0 at September 30, 2020. Derivatives Designated as Cash Flow Hedging Relationships – The Company has entered into a series of forward currency contracts to hedge the cash flow uncertainty of forecasted payment of inventory purchases due to short term currency fluctuations. Energizer’s primary foreign affiliates, which are exposed to U.S. dollar purchases, have the Euro, the British pound, the Canadian dollar and the Australian dollar as their local currencies. These foreign currencies represent a significant portion of Energizer's foreign currency exposure. At September 30, 2020 and 2019, Energizer had an unrealized pre-tax loss of $4.9 and gain of $4.5, respectively, included in Accumulated other comprehensive loss on the Consolidated Balance Sheets. Assuming foreign exchange rates versus the U.S. dollar remain at September 30, 2020 levels, over the next twelve months, $4.9 of the pre-tax loss included in Accumulated other comprehensive loss is expected to be recognized in earnings. Contract maturities for these hedges extend into fiscal year 2022. There were 64 open foreign currency contracts at September 30, 2020, with a total notional value of approximately $170. The Company began a hedging program on zinc purchases in March 2019. The contracts were determined to be cash flow hedges and qualify for hedge accounting. The contract maturities for these hedges extend into 2022. There were 17 open contracts at September 30, 2020, with a total notional value of approximately $41. The pre-tax gain on the zinc contracts of $4.4 and the pre-tax loss of $1.0 was recognized at September 30, 2020 and 2019, respectively, and was included in Accumulated other comprehensive loss on the Consolidated Balance Sheet. As noted above, in March 2017, the Company entered into an interest rate swap agreement (2017 Interest rate swap) with one major financial institution that fixed the variable benchmark component (LIBOR) on $200.0 of Energizer's variable rate debt through June 2022 at an interest rate of 2.03%. In February 2018, the Company entered into a forward starting interest rate swap (2018 Interest rate swap) with an effective date of October 1, 2018, with one major financial institution that fixed the variable benchmark component (LIBOR) on additional variable rate debt of $400.0 at an interest rate of 2.47%. Beginning April 1, 2019, the notional amount decreases $50.0 each quarter, and continues to decrease until its termination date of December 31, 2020. The notional value of the swap was $100.0 at September 30, 2020. These hedging instruments were considered cash flow hedges for accounting purposes. At September 30, 2020 and 2019, Energizer recorded an unrecognized pre-tax loss of $7.3 and $4.7, respectively, on these interest rate swap contracts, both of which were included in Accumulated other comprehensive loss on the Consolidated Balance Sheets. Derivatives not Designated in Hedging Relationships - In addition, Energizer enters into foreign currency derivative contracts which are not designated as cash flow hedges for accounting purposes to hedge existing balance sheet exposures. Any gains or losses on these contracts would be offset by corresponding exchange losses or gains on the underlying exposures; thus are not subject to significant market risk. There were 8 open foreign currency derivative contracts which are not designated as cash flow hedges at September 30, 2020, with a total notional value of approximately $69. The following table provides the Company's estimated fair values as of September 30, 2020 and 2019, and the amounts of gains and losses on derivative instruments classified as cash flow hedges as of and for the twelve months ended September 30, 2020 and 2019, respectively: At September 30, 2020 For the Year Ended September 30, 2020 Derivatives designated as Cash Flow Hedging Relationships Estimated Fair Value (Liability) / Asset (1) (Loss) / Gain Recognized in OCI (2) Gain / (Loss) Reclassified Foreign currency contracts $ (4.9) $ (6.1) $ 3.3 Interest rate swaps (2017 and 2018) (7.3) (6.6) (4.3) Zinc contracts 4.4 3.8 (1.6) Total $ (7.8) $ (8.9) $ (2.6) At September 30, 2019 For the Year Ended September 30, 2019 Derivatives designated as Cash Flow Hedging Relationships Estimated Fair Value Asset/(Liability) (1) Gain/(Loss) Recognized in OCI (2) Gain Reclassified Foreign currency contracts $ 4.5 $ 8.6 $ 8.4 Interest rate swaps (2017 and 2018) (4.7) (11.8) 0.3 Zinc contracts (1.0) (1.0) — Total $ (1.2) $ (4.2) $ 8.7 (1) All derivative liabilities are presented in Other current liabilities or Other liabilities. All derivative assets are presented in Other current assets or Other assets. (2) OCI is defined as other comprehensive income. (3) Gain/(Loss) reclassified to Income was recorded as follows: Foreign currency contracts in Cost of products sold, interest rate contracts in Interest expense, and commodity contracts in Cost of products sold. (4) Each of these hedging relationships has derivative instruments with a high correlation to the underlying exposure being hedged and has been deemed highly effective in offsetting the underlying risk. The following table provides estimated fair values as of September 30, 2020 and 2019, and the gains on derivative instruments not classified as cash flow hedges as of and for the twelve months ended September 30, 2020 and 2019, respectively. At September 30, 2020 For the Year Ended September 30, 2020 Derivatives not designated as Cash Flow Hedging Relationships Estimated Fair Value Liability (1) Loss Recognized in Income (2) (3) Foreign currency contracts $ (0.2) $ (3.1) At September 30, 2019 For the Year Ended September 30, 2019 Derivatives not designated as Cash Flow Hedging Relationships Estimated Fair Value Asset (1) Gain Recognized in Income (2)(4) Foreign currency contracts $ 4.3 $ 5.3 (1) All derivative liabilities are presented in Other current liabilities or Other liabilities and derivative assets are presented in Other current assets or Other assets. (2) Gain (Loss) recognized in Income was recorded in Other items, net. (3) Includes a $2.2 loss on the hedge contract on the proceeds from the Varta Divestiture. (4) Includes the gain of $4.6 related to the hedge contract on the expected proceeds from the anticipated Varta Divestiture. Energizer has the following recognized financial assets and financial liabilities resulting from those transactions that meet the scope of the disclosure requirements as necessitated by applicable accounting guidance for balance sheet offsetting: Offsetting of derivative assets At September 30, 2020 At September 30, 2019 Description Balance Sheet location Gross amounts of recognized assets Gross amounts offset in the Balance Sheet Net amounts of assets presented in the Balance Sheet Gross amounts of recognized assets Gross amounts offset in the Balance Sheet Net amounts of assets presented in the Balance Sheet Foreign Currency Contracts Other Current Assets, Other Assets $ 0.8 $ (0.4) $ 0.4 $ 9.4 $ (0.4) $ 9.0 Offsetting of derivative liabilities At September 30, 2020 At September 30, 2019 Description Balance Sheet location Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Foreign Currency Contracts Other Current Liabilities, Other Liabilities $ (6.0) $ 0.5 $ (5.5) $ (0.4) $ 0.2 $ (0.2) Fair Value Hierarchy – Accounting guidance on fair value measurements for certain financial assets and liabilities requires that assets and liabilities carried at fair value be classified in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions or external inputs from inactive markets. Under the fair value accounting guidance hierarchy, an entity is required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The following table sets forth the Company's financial assets and liabilities, which are carried at fair value, as of September 30, 2020 and 2019 that are measured on a recurring basis during the period, segregated by level within the fair value hierarchy: Level 2 September 30, 2020 2019 (Liabilities)/Assets at estimated fair value: Deferred Compensation $ (26.8) $ (28.1) Exit lease liability — (0.1) Derivatives - Foreign Currency contracts (4.9) 4.5 Derivatives - Foreign Currency contracts (non-hedge) (0.2) 4.3 Derivatives - 2017 and 2018 Interest Rate Swaps (7.3) (4.7) Derivatives - Zinc contracts 4.4 $ (1.0) Net Liabilities at estimated fair value $ (34.8) $ (25.1) Energizer had no level 1 financial assets or liabilities, other than pension plan assets, and no level 3 financial assets or liabilities at September 30, 2020 and 2019. Due to the nature of cash and cash equivalents and restricted cash, carrying amounts on the balance sheets approximate estimated fair value. The estimated fair value of cash was determined based on level 1 inputs and cash equivalents and restricted cash are determined based on level 2 inputs. At September 30, 2020, the estimated fair value of the Company's unfunded deferred compensation liability is determined based upon the quoted market prices of investment options that are offered under the plan. The estimated fair value of the exit lease liability is determined based on the discounted cash flows of the remaining lease rentals reduced by estimated sublease rentals that could be reasonably obtained for the property. The estimated fair value of foreign currency contracts, interest rate swap and zinc contracts, as described above, is the amount that the Company would receive or pay to terminate the contracts, considering first, quoted market prices of comparable agreements, or in the absence of quoted market prices, such factors as interest rates, currency exchange rates and remaining maturities. At September 30, 2020 and 2019, the fair market value of fixed rate long-term debt was $2,858.3 and $2,474.7, respectively, compared to its carrying value of $2,761.9 and $2,408.4, respectively. The estimated fair value of the long-term debt is estimated using yields obtained from independent pricing sources for similar types of borrowing arrangements. The estimated fair value of fixed rate long-term debt has been determined based on level 2 inputs. |
Environmental and Regulatory
Environmental and Regulatory | 12 Months Ended |
Sep. 30, 2020 | |
Environmental Remediation Obligations [Abstract] | |
Environmental and Regulatory | Environmental and Regulatory Government Regulation and Environmental Matters – The operations of Energizer are subject to various federal, state, foreign and local laws and regulations intended to protect the public health and the environment. These regulations relate primarily to worker safety, air and water quality, underground fuel storage tanks and waste handling, collection, recycling and disposal. In connection with some sites, Energizer has been identified as a “potentially responsible party” (PRP) under the Comprehensive Environmental Response, Compensation and Liability Act and may be required to share in the cost of cleanup with respect to certain federal “Superfund” sites. Energizer may also be required to share in the cost of cleanup with respect to state-designated sites or other sites outside of the U.S. Accrued environmental costs at September 30, 2020 were $9.3, of which $2.1 is expected to be spent during fiscal 2021. It is difficult to quantify with certainty the cost of environmental matters, particularly remediation and future capital expenditures for environmental control equipment. Environmental spending estimates could be modified as a result of changes in legal requirements or the enforcement or interpretation of existing requirements. Legal Proceedings – The Company and its affiliates are subject to a number of legal proceedings in various jurisdictions arising out of its operations. Many of these legal matters are in preliminary stages and involve complex issues of law and fact, and may proceed for protracted periods of time. The amount of liability, if any, from these proceedings cannot be determined with certainty. We are a party to legal proceedings and claims that arise during the ordinary course of business. We review our legal proceedings and claims, regulatory reviews and inspections on an ongoing basis and follow appropriate accounting guidance when making accrual and disclosure decisions. We establish accruals for those contingencies where the incurrence of a loss is probable and can be reasonably estimated, and we disclose the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for our financial statements to not be misleading. We do not record liabilities when the likelihood that the liability has been incurred is probable, but the amount cannot be reasonably estimated. Based upon present information, the Company believes that its liability, if any, arising from such pending legal proceedings, asserted legal claims and known potential legal claims which are likely to be asserted, is not reasonably likely to be material to the Company's financial position, results of operations, or cash flows, taking into account established accruals for estimated liabilities. |
Other Commitments and Contingen
Other Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments and Contingencies | Other Commitments and Contingencies In the ordinary course of business, the Company also enters into supply and service contracts. These contracts can include either volume commitments or fixed expiration dates, termination provisions and other standard contractual considerations. At September 30, 2020, the Company had approximately $18.5 of purchase obligations. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss)/Income | 12 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss)/Income | Accumulated Other Comprehensive (Loss)/Income The following table presents the changes in accumulated other comprehensive (loss)/income (AOCI), net of tax by component: Foreign Currency Translation Adjustments Pension Activity Zinc Contracts Foreign Currency Contracts Interest Rate Swap Total Balance at September 30, 2017 $ (93.1) $ (139.4) $ — $ (4.5) $ (1.8) (238.8) OCI before reclassifications (20.5) 6.7 — 4.8 6.5 (2.5) Reclassifications to earnings — 16.2 — 3.0 0.7 19.9 Reclassifications to retained earnings — (19.9) — — (0.5) (20.4) Balance at September 30, 2018 $ (113.6) $ (136.4) $ — $ 3.3 $ 4.9 $ (241.8) OCI before reclassifications 9.0 (44.3) (0.7) 6.3 (9.0) (38.7) Reclassifications to earnings — 7.4 — (6.5) (0.2) 0.7 Activity related to discontinued operations (19.4) — 0.9 — — (18.5) Balance at September 30, 2019 $ (124.0) $ (173.3) $ 0.2 $ 3.1 $ (4.3) $ (298.3) OCI before reclassifications (32.7) 0.3 2.9 (4.7) (5.1) (39.3) Reclassifications to earnings — 6.5 1.2 (2.5) 3.3 8.5 Activity related to discontinued operations 19.3 3.0 (0.9) — — 21.4 Balance at September 30, 2020 $ (137.4) $ (163.5) $ 3.4 $ (4.1) $ (6.1) $ (307.7) The following table presents the reclassifications from AOCI: For the Year Ended September 30, Amount Reclassified from AOCI (1) 2020 2019 2018 Affected Line Item in the Consolidated Statements of Earnings Gains and losses on cash flow hedges Foreign exchange contracts $ (3.3) $ (8.4) $ 3.8 Cost of products sold Interest rate swaps 4.3 (0.3) 0.9 Interest expense Zinc contracts 1.6 — — Cost of products sold 2.6 (8.7) 4.7 Loss / (Earnings) before income taxes (0.6) 2.0 (1.0) Income tax (benefit) / provision $ 2.0 $ (6.7) $ 3.7 Net (earnings) / loss Amortization of defined benefit pension items Actuarial losses $ 8.0 $ 5.0 $ 6.4 (2) Settlement loss on Canadian pension plan termination — — 14.1 (2) Settlement loss on Ireland pension plan termination — 3.7 — (2) Settlement losses on other plans 0.5 0.4 1.1 (2) 8.5 9.1 21.6 Loss / (Earnings) before income taxes (2.0) (1.7) (5.4) Income tax benefit $ 6.5 $ 7.4 $ 16.2 Net (earnings) / loss Total reclassifications for the period $ 8.5 $ 0.7 $ 19.9 Net (earnings) / loss Amounts in parentheses indicate credits to Consolidated Statements of Earnings. (1) The Company adopted ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities in fiscal 2019 as discussed in Note 2, Summary of Significant Accounting Policies. The fiscal 2020 and 2019 impact is recorded in Cost of products sold and fiscal 2018 is recorded in Other items, net. (2) These AOCI components are included in the computation of net periodic benefit cost (see Note 14, Pension Plans, for further details) and recorded in Other items, net. |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 12 Months Ended |
Sep. 30, 2020 | |
Financial Statement Related Disclosures [Abstract] | |
Supplemental Financial Statement Information | Supplemental Financial Statement Information The components of certain income statement accounts are as follows: For the Years Ended September 30, Other items, net 2020 2019 2018 Interest income $ (0.6) $ (7.7) $ (1.4) Interest income on restricted cash (1) — (5.8) (5.2) Foreign currency exchange loss 8.7 5.2 8.1 Pension benefit other than service costs (2) (1.7) (2.3) (6.3) Settlement loss on pension plan terminations (2) — 3.7 14.1 Acquisition foreign currency gains (1) 2.2 (13.6) (15.2) Pre-acquisition insurance proceeds (1) (4.9) — — Settlement of acquired business hedging contracts (1) — 1.5 — Gain on sale of assets (1) (1.0) — — Transition services agreement income (1) (0.9) (1.4) — Other 0.2 6.1 (0.7) Total Other items, net $ 2.0 $ (14.3) $ (6.6) (1) See Note 4, Acquisitions, for additional information on these items. (2) See Note 14, Pension Plans, for additional information on this item. The components of certain balance sheet accounts are as follows: September 30, Inventories 2020 2019 Raw materials and supplies $ 85.2 $ 70.5 Work in process 148.7 103.7 Finished products 277.4 295.1 Total inventories $ 511.3 $ 469.3 Other Current Assets Miscellaneous receivables $ 15.8 $ 16.5 Due from Spectrum 30.6 7.6 Prepaid expenses 76.5 71.3 Value added tax collectible from customers 20.4 23.1 Other 14.5 58.6 Total other current assets $ 157.8 $ 177.1 Property, plant and equipment Land $ 8.9 $ 9.6 Buildings 121.9 119.9 Machinery and equipment 821.4 823.0 Capital leases 51.4 50.4 Construction in progress 39.3 25.8 Total gross property 1,042.9 1,028.7 Accumulated depreciation (690.8) (666.7) Total property, plant and equipment, net $ 352.1 $ 362.0 September 30, 2020 2019 Other Current Liabilities Accrued advertising, sales promotion and allowances $ 12.1 $ 11.8 Accrued trade promotions 45.4 53.1 Accrued salaries, vacations and incentive compensation 68.1 59.2 Accrued interest expense 36.9 37.4 Accrued redemption premium 55.9 — Due to Spectrum 1.6 2.6 Accrued acquisition and integration costs 4.9 7.9 Restructuring reserve 9.4 9.8 Income taxes payable 30.2 23.4 Other 144.2 128.4 Total other current liabilities $ 408.7 $ 333.6 Other Liabilities Pensions and other retirement benefits $ 89.9 $ 109.0 Deferred compensation 26.8 28.1 Mandatory transition tax 16.7 16.7 Other non-current liabilities 78.2 50.8 Total other liabilities $ 211.6 $ 204.6 For the Years Ended September 30, Allowance for Doubtful Accounts 2020 2019 2018 Balance at beginning of year $ 3.8 $ 4.0 $ 5.8 Provision charged to expense, net of reversals 1.8 1.5 (0.8) Write-offs, less recoveries, translation, other (2.8) (1.7) (1.0) Balance at end of year $ 2.8 $ 3.8 $ 4.0 For the Years Ended September 30, Income Tax Valuation Allowance 2020 2019 2018 Balance at beginning of year $ 11.9 $ 12.0 $ 19.3 Provision charged to expense, net of reversals 3.1 0.7 (7.3) Reversal of provision charged to expense (0.2) (0.4) — Translation, other (1.7) (0.4) — Balance at end of year $ 13.1 $ 11.9 $ 12.0 The components of certain cash flow statement components are as follows: For the Years Ended September 30, Certain items from Operating Cash Flow Activities 2020 2019 2018 Interest paid $ 196.0 $ 170.3 $ 54.3 Income taxes paid, net 46.7 43.3 46.2 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions On January 28, 2019, the Company completed the Auto Care Acquisition from Spectrum, which included stock consideration of 5.3 million shares of Energizer common stock. In accordance with the terms of our Shareholder Agreement with Spectrum, Spectrum has the right to sell such shares on or after January 28, 2020, including through one or more registered secondary offerings. Upon Spectrum's written request that is not withdrawn, Energizer is obligated to use commercially reasonable efforts to file a shelf registration statement covering the resale by Spectrum of its Energizer Common stock. As of September 30, 2020, Spectrum owns 1.7 million shares, or 2.5% of the Company's outstanding common shares. Following the completion of the Battery and Auto Care Acquisitions, the Company and Spectrum have entered into transition service agreements (TSA) and reverse TSA. Under the agreements, Energizer and Spectrum will provide each other certain specified back office support services on a transitional basis, including among other things, payroll and other human resource services, information systems as well as accounting support. The charges for the transition services are generally intended to allow the providing company to fully recover the allocated direct costs of providing the services, plus all out-of-pocket costs and expenses, and including a nominal profit. As of September 30, 2020, the Company has exited the majority of the TSA and reverse TSA, and anticipates being out of all agreements by December 31, 2020. During the twelve months ended September 30, 2020 and 2019, the Company paid $2.3 and $0.2, respectively, to Spectrum related to rent for office space at their Middleton, Wisconsin headquarters. For the twelve months ended September 30, 2020, the Company incurred expense of $8.4 in SG&A and $0.4 in Cost of products sold. The Company also recorded income of $0.9 in Other items, net related to the reverse transaction services agreements provided for the twelve months end period. For the twelve months ended September 30, 2019, the Company incurred expense of $15.3 in SG&A and $1.0 in Cost of products sold. The Company recorded income of $1.4 in Other items, net related to the reverse transaction services agreements provided for the twelve months ended period. Related to these agreements, the Company had a payable to Spectrum of $1.6 and $2.6 in Other current liabilities and a receivable from Spectrum of $30.6 and $7.6 in Other current assets as of September 30, 2020 and 2019, respectively, as well as a receivable from Spectrum in Other assets of $18.4 as of September 30, 2020. The asset balance from Spectrum also included the tax indemnification due from Spectrum under the initial purchase agreements. The Company also entered into a supply agreement with Spectrum, ancillary to the Auto Care Acquisition that became effective upon the consummation of the acquisition. The supply agreement resulted in expense to the Company of $17.8 and $9.8 for the twelve months ended September 30, 2020 and 2019, respectively. The Company recorded $2.7 and $0.1 in Accounts payable at September 30, 2020 and 2019, respectively, related to these purchases. In discontinued operations, the Company recorded income of $3.8 and $11.8 for reverse TSA, and recorded expense of $0.3 and $1.3 for the twelve months ended September 30, 2020 and 2019, respectively. In addition, there was a payable due to Spectrum of $22.5 recorded in Liabilities held for sale and a receivable from Spectrum of $8.9 recorded in Assets held for sale at September 30, 2019. |
Segments
Segments | 12 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segments | Segments Operations for Energizer are managed via two major geographic reportable segments: Americas and International. Segment performance is evaluated based on segment operating profit, exclusive of general corporate expenses, share-based compensation costs, costs associated with acquisition and integration activities, amortization costs, business realignment activities, research & development costs, gains on sale of real estate, settlement loss on pension plan termination, and other items determined to be corporate in nature. Financial items, such as interest income and expense and loss on extinguishment of debt, are managed on a global basis at the corporate level. The exclusion of substantially all acquisition, integration, restructuring and realignment costs from segment results reflects management’s view on how it evaluates segment performance. Energizer’s operating model includes a combination of standalone and shared business functions between the geographic segments, varying by country and region of the world. Shared functions include IT and finance shared service costs. Energizer applies a fully allocated cost basis, in which shared business functions are allocated between segments. Such allocations are estimates, and do not represent the costs of such services if performed on a standalone basis. For the Years Ended September 30, Net Sales 2020 2019 2018 Americas $ 1,971.2 $ 1,734.8 $ 1,135.6 International 773.6 759.7 662.1 Total net sales $ 2,744.8 $ 2,494.5 $ 1,797.7 Segment Profit Americas 498.5 456.6 326.1 International 155.8 174.9 149.6 Total segment profit $ 654.3 $ 631.5 $ 475.7 General corporate and other expenses (1) (103.8) (111.5) (97.3) Global marketing expenses (2) (28.2) (18.2) (19.0) Research and development expense (3) (34.1) (31.7) (22.4) Amortization of intangible assets (56.5) (43.2) (11.5) Acquisition and integration costs (4) (68.0) (188.4) (84.6) Settlement loss on pension plan termination (5) — (3.7) (14.1) Gain on sale of real estate — — 4.6 Loss on extinguishment of debt (94.9) — — Interest expense (6) (195.0) (160.4) (56.5) Other items, net (7) (6.1) (1.3) 0.3 Total earnings before income taxes $ 67.7 $ 73.1 $ 175.2 (1) Of this amount, $2.9 and $2.3 were recorded in Cost of products sold in the Consolidated Statement of Earnings and Comprehensive Income for the twelve months ended September 30, 2020 and 2019, respectively. All other amounts were recorded in SG&A. (2) The twelve months ended September 30, 2020 includes $12.1 recorded in SG&A and $16.1 recorded in A&P. The twelve months ended September 30, 2019 includes $6.3 recorded in SG&A and $11.9 recorded in A&P. The twelve months ended September 30, 2018 includes $4.9 recorded in SG&A and $14.1 recorded in A&P. (3) R&D expense for the twelve months ended September 30, 2020 and 2019 on the Consolidated Statement of Earnings and Comprehensive Income includes $1.3 and $1.1, respectively, which has been reclassified to Acquisition and integration costs for purposes of the reconciliation above. (4) Acquisition and integration costs were included in the following lines in the Consolidated Statement of Earnings and Comprehensive Income: For the Years Ended September 30, Acquisition and Integration Costs 2020 2019 2018 Inventory step up (COGS) $ — $ 36.2 $ 0.2 Cost of products sold 32.0 22.5 — SG&A 38.8 82.3 62.9 Research and development 1.3 1.1 — Interest expense — 65.6 41.9 Other items, net (4.1) (19.3) (20.4) Total Acquisition and Integration Costs $ 68.0 $ 188.4 $ 84.6 (5) Included in Other items, net in the Consolidated Statements of Earnings and Comprehensive Income. Refer to Note 14, Pension plans, for further information. (6) The amount for the twelve months ended September 30, 2019 and 2018 on the Consolidated Statements of Earnings and Comprehensive Income included $65.6 and $41.9 of expense, respectively, which has been reclassified to Acquisition and integration costs from Interest expense for purposes of the reconciliation above. (7) The amount for the twelve months ended September 30, 2020, 2019 and 2018 on the Consolidated Statements of Earnings and Comprehensive Income included a gain of $4.1, $19.3 and $20.4, respectively, which has been reclassified to Acquisition and integration costs from Other items, net and the Settlement loss on pension plan terminations for the twelve months ended September 30, 2019 and 2018 of $3.7 and $14.1, respectively, that have been reclassified out of Other items, net for purposes of the above reconciliation. Corporate assets shown in the following table include all financial instruments, pension assets and tax asset balances that are managed outside of operating segments. In addition, the Restricted cash held as of September 30, 2020 and the Assets held for sale at September 30, 2019 are assets utilized outside of the operating segments. September 30, Total Assets 2020 2019 Americas $ 1,238.0 $ 991.9 International 668.5 621.0 Total segment assets $ 1,906.5 $ 1,612.9 Corporate 106.8 81.3 Restricted cash 790.0 — Assets held for sale — 791.7 Goodwill and other intangible assets, net 2,925.0 2,963.7 Total assets $ 5,728.3 $ 5,449.6 September 30, Long-Lived Assets 2020 2019 United States $ 399.7 $ 275.6 Singapore 67.3 67.3 United Kingdom 62.2 46.7 Other International 63.2 59.5 Total long-lived assets excluding goodwill and intangibles $ 592.4 $ 449.1 Capital expenditures and depreciation and amortization by segment for the years ended September 30 are as follows: For the Years Ended September 30, Capital Expenditures 2020 2019 2018 Americas $ 55.0 $ 42.7 $ 16.2 International 10.3 12.4 8.0 Total segment capital expenditures $ 65.3 $ 55.1 $ 24.2 Depreciation and Amortization Americas $ 37.9 $ 34.6 $ 21.2 International 17.5 15.0 12.4 Total segment depreciation and amortization 55.4 49.6 33.6 Corporate intangible amortization 56.5 43.2 11.5 Total depreciation and amortization $ 111.9 $ 92.8 $ 45.1 Geographic segment information for the years ended September 30 are as follows: For the Years Ended September 30, Net Sales to Customers 2020 2019 2018 United States $ 1,641.9 $ 1,435.8 $ 935.8 International 1,102.9 1,058.7 861.9 Total net sales $ 2,744.8 $ 2,494.5 $ 1,797.7 |
Quarterly Financial Information
Quarterly Financial Information - (Unaudited) | 12 Months Ended |
Sep. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information - (Unaudited) | Quarterly Financial Information - (Unaudited) The results of any single quarter are not necessarily indicative of the Company’s results for the full year. Net earnings of the Company are impacted in the first quarter by the additional battery product sales volume associated with the December holiday season. The Battery and Auto Care Acquisition occurred on January 2, 2019 and January 28, 2019, respectively, and those results are only included in the quarters post close. Per share data is computed independently for each of the periods presented. As a result, the sum of the amounts for the quarter may not equal the total for the year. Fiscal 2020 First Second Third Fourth Net sales $ 736.8 $ 587.0 $ 658.0 $ 763.0 Gross profit 301.3 235.6 263.2 281.8 Net earnings/(loss) from continuing operations 45.8 13.7 29.0 (41.7) Net earnings/(loss) per common share - continuing operations: Basic $ 0.60 $ 0.14 $ 0.37 $ (0.67) Diluted $ 0.60 $ 0.14 $ 0.37 $ (0.67) Items decreasing/(increasing) net earnings: Acquisition and integration costs (pre-tax) 19.3 16.9 11.4 20.4 Loss on extinguishment of debt (pre-tax) 4.2 — — 90.7 One-time impact of the CARES Act benefit/(expense) — 3.4 1.7 (3.3) Fiscal 2019 First Second Third Fourth Net sales $ 571.9 $ 556.4 $ 647.2 $ 719.0 Gross profit 275.5 194.2 246.3 287.8 Net earnings/(loss) from continuing operations 70.8 (62.3) 9.2 47.0 Net earnings/(loss) per common share - continuing operations: Basic $ 1.19 $ (0.97) $ 0.07 $ 0.62 Diluted $ 1.16 $ (0.97) $ 0.07 $ 0.62 Items decreasing/(increasing) net earnings: Acquisition and integration costs (pre-tax) 36.5 95.4 28.0 28.5 Settlement loss on Ireland pension plan termination (pre-tax) — — — 3.7 One-time impact of the new U.S. Tax Legislation benefit/(expense) 1.5 — (0.8) (1.1) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation – The consolidated financial statements include the accounts of Energizer and its subsidiaries. All significant intercompany transactions are eliminated. Energizer has no material equity method investments, variable interests or non-controlling interests. As a result of the Varta Divestiture, the assets and liabilities associated with the Divestment Business as of September 30, 2019 were classified as held for sale in the accompanying Consolidated Balance Sheets. There were no assets or liabilities from these operations as of September 30, 2020. The respective operations of the Divestment Business, including a loss recorded on divestment, have been classified as discontinued operations in the accompanying Consolidated Statements of Earnings and Comprehensive Income and Statements of Cash Flows. See Note 5 - Divestment for more information on the assets and liabilities classified as held for sale and discontinued operations. |
Use of Estimates | Use of Estimates – The preparation of the Company's Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. On an ongoing basis, Energizer evaluates its estimates, including those related to customer promotional programs and incentives, product returns, bad debts, the carrying value of inventories, intangible and other long-lived assets, income taxes, pensions and other postretirement benefits, share-based compensation, contingencies and acquisitions. Actual results could differ materially from those estimates. In regard to ongoing impairment testing of goodwill and indefinite lived intangible assets, significant deterioration in future cash flow projections, changes in discount rates used in discounted cash flow models or changes in other assumptions used in estimating fair values, versus those anticipated at the time of the initial acquisition, as well as subsequent estimated valuations, could result in impairment charges that may materially affect the financial statements in a given year. |
Cash and Cash Equivalents | Cash and Cash Equivalents – Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less. At September 30, 2020 and 2019, Energizer had $459.8 and $258.5, respectively, in available cash, 61.8% and 75.8% of which was outside of the U.S., respectively. The Company has extensive operations, including a significant manufacturing footprint outside of the U.S. We manage our worldwide cash requirements by reviewing available funds among the many subsidiaries through which we conduct our business and the cost effectiveness with which those funds can be accessed. The repatriation of cash balances from certain of our subsidiaries could have adverse tax consequences or be subject to regulatory capital requirements; however, those balances are generally available without legal restrictions to fund ordinary business operations. Our intention is to reinvest these funds indefinitely. |
Foreign Currency Translations | Foreign Currency Translation – Financial statements of foreign operations where the local currency is the functional currency are translated using end-of-period exchange rates for assets and liabilities and average exchange rates during the period for results of operations. Related translation adjustments are reported as a component within accumulated other comprehensive loss in the equity section of the Consolidated Balance Sheets. |
Financial Instruments and Derivative Securities | Financial Instruments and Derivative Securities – Energizer uses financial instruments, from time to time, in the management of foreign currency, interest rate risk and commodity price risks that are inherent to its business operations. Such instruments are not held or issued for trading purposes. Every derivative instrument (including certain derivative instruments embedded in other contracts) is required to be recorded on the balance sheet at fair value as either an asset or liability. Changes in fair value of recorded derivatives are required to be recognized in earnings unless specific hedge accounting criteria are met. Foreign exchange instruments, including currency forwards, are used primarily to reduce cash transaction exposures and to manage other translation exposures. Foreign exchange instruments used are selected based on their risk reduction attributes, costs and the related market conditions. The Company has designated certain foreign currency contracts as cash flow hedges for accounting purposes as of September 30, 2020 and 2019. The Company has interest rate risk with respect to interest expense on variable rate debt. The Company is party to an interest rate swap agreement with one major financial institution that fixes the variable benchmark component (LIBOR) on $200.0 of the Company's variable rate debt at September 30, 2020 and 2019. In February 2018, the Company entered into a forward starting interest rate swap with an effective date of October 1, 2018, with one major financial institution that fixed the variable benchmark component (LIBOR) on additional variable rate debt at an interest rate of 2.47%. At the effective date, the swap had a notional value of $400.0. Beginning April 1, 2019, the notional amount decreased $50.0 each quarter, and continues to decrease until its termination date of December 31, 2020. The notional value of the swap was $100.0 at September 30, 2020. |
Cash Flow Presentation | Cash Flow Presentation – The Consolidated Statements of Cash Flows are prepared using the indirect method, which reconciles net earnings to cash flow from operating activities. The reconciliation adjustments include the removal of timing differences between the occurrence of operating receipts and payments and their recognition in net earnings. The adjustments also remove cash flows arising from investing and financing activities, which are presented separately from operating activities. Cash flows from foreign currency transactions and operations are translated at an average exchange rate for the period. Cash flows from hedging activities are included in the same category as the items being hedged, which is primarily operating activities. Cash payments related to income taxes are classified as operating activities. |
Trade Receivables, net | Trade Receivables, net – Trade receivables are stated at their net realizable value. The allowance for trade promotions reflects management's estimate of the amount of trade promotions that customers will take as an invoice reduction, rather than receiving cash payments for the trade allowances earned. See additional discussion on the trade allowances in the revenue recognition discussion further in this note. The allowance for doubtful accounts reflects the Company's best estimate of probable losses inherent in the receivables portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other currently available information. Receivables that the Company has factored at September 30, 2020 and 2019 are excluded from the Trade receivables, net balance. Bad debt expense is included in Selling, general and administrative expense (SG&A) in the Consolidated Statements of Earnings and Comprehensive Income. |
Inventories | Inventories – Inventories are valued at the lower of cost and net realizable value, with cost generally being determined using average cost or the first-in, first-out (FIFO) method. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company records a reserve for excess and obsolete inventory based upon the historical usage rates, sales patterns of its products and specifically-identified obsolete inventory. |
Capitalized Software Costs | Capitalized Software Costs – Capitalized software costs are included in Other assets. These costs are amortized using the straight-line method over periods of related benefit ranging from three |
Property, Plant and Equipment, net | Property, Plant and Equipment, net – Property, plant and equipment, net is stated at historical costs. Expenditures for new facilities and expenditures that substantially increase the useful life of property, including interest during construction, are capitalized and reported in the Capital expenditures caption in the Consolidated Statements of Cash Flows. Maintenance, repairs and minor renewals are expensed as incurred. When property is retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts, and gains or losses on the disposition are reflected in earnings. Property, plant and equipment, net held under capital leases are amortized on a straight-line bases over the shorter of the lease term or estimated useful life of the asset and such amortization is included in depreciation expense. Depreciation is generally provided on the straight-line basis by charges to pre-tax earnings at rates based on estimated useful lives. Estimated useful lives range from two twenty-five three Estimated useful lives are periodically reviewed and, when appropriate, changes are made prospectively. When certain events or changes in operating conditions occur, asset lives may be adjusted and an impairment assessment may be performed on the recoverability of the carrying amounts. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets – Energizer reviews long-lived assets, other than goodwill and other intangible assets for impairment, when events or changes in business circumstances indicate that the remaining useful life may warrant revision or that the carrying amount of the long-lived asset may not be fully recoverable. Energizer performs undiscounted cash flow analysis to determine if impairment exists. If impairment is determined to exist, any related impairment loss is calculated based on estimated fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less cost of disposal. |
Acquisitions | Acquisitions – Energizer accounts for the acquisition of a business using the acquisition method of accounting and allocates the cost of an acquired business to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The excess value of the cost of an acquired business over the fair value of the assets acquired and liabilities assumed is recognized as goodwill. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to assets acquired and liabilities assumed with the corresponding offset to goodwill. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets – Goodwill and indefinite-lived intangibles are not amortized, but are evaluated annually for impairment as part of the Company's annual business planning cycle in the fourth fiscal quarter, or when indicators of a potential impairment are present. Intangible assets with finite lives are amortized on a straight-line basis over expected lives. Such intangibles are also evaluated for impairment including ongoing monitoring of potential impairment indicators. |
Revenue Recognition | Revenue Recognition – The Company measures revenue as the amount of consideration for which it expects to be entitled in exchange for transferring goods. Net sales reflect the transaction prices for contracts, which include units shipped at selling list prices reduced by variable consideration as determined by the terms of each individual contract. Discounts are offered to customers for early payment and an estimate of the discount is recorded as a reduction of net sales in the same period as the sale. Our standard sales terms are final and returns or exchanges are not permitted unless a special exception is made. Reserves are established and recorded in cases where the right of return does exist for a particular sale. Energizer offers a variety of 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. Methodologies for determining these provisions are dependent on specific customer pricing and promotional practices, which range from contractually fixed percentage price reductions to reimbursement based on actual occurrence or performance. Where applicable, future reimbursements are estimated based on a combination of historical patterns and future expectations regarding specific in-market product performance. Energizer accrues, at the time of sale, the estimated total payments and allowances associated with each transaction. Customers redeem trade promotions in the form of payments from the accrued trade allowances or invoice credits against trade receivables. Additionally, Energizer offers programs directly to consumers to promote the sale of its products. Revenue is recorded net of the taxes we collect on behalf of governmental authorities which are generally included in the price to the customer. Energizer continually assesses the adequacy of accruals for customer 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. |
Advertising and Sales Promotion Costs | Advertising and Sales Promotion Costs – The Company advertises and promotes its products through national and regional media and expenses such activities as incurred. |
Research and Development Costs | Research and Development Costs - The Company expenses research and development costs as incurred. |
Income Taxes | Income Taxes – Our annual effective income tax rate is determined based on our income, statutory tax rates and the tax impacts of items treated differently for tax purposes than for financial reporting purposes. Tax law requires certain items be included in the tax return at different times than the items are reflected in the financial statements. Some of these differences are permanent, such as expenses that are not deductible in our tax return, and some differences are temporary, reversing over time, such as depreciation expense. These temporary differences create deferred tax assets and liabilities. The Company estimates income taxes and the effective income tax rate in each jurisdiction that it operates. This involves estimating taxable earnings, specific taxable and deductible items, the likelihood of generating sufficient future taxable income to utilize deferred tax assets, the portion of the income of foreign subsidiaries that is expected to be remitted to the U.S. and be taxable and possible exposures related to future tax audits. Deferred tax assets are evaluated on a subsidiary by subsidiary basis to ensure that the asset will be realized. Valuation allowances are established when the realization is not deemed to be more likely than not. Future performance is monitored, and when objectively measurable operating trends change, adjustments are made to the valuation allowances accordingly. To the extent the estimates described above change, adjustments to income taxes are made in the period in which the estimate is changed. The Company operates in multiple jurisdictions with complex tax and regulatory environments, which are subject to differing interpretations by the taxpayer and the taxing authorities. At times, the Company may take positions that management believes are supportable, but are potentially subject to successful challenges by the appropriate taxing authority. The Company evaluates its tax positions and establishes liabilities in accordance with guidance governing accounting for uncertainty in income taxes. The Company reviews these tax uncertainties in light of the changing facts and circumstances, such as the progress of tax audits, and adjusts them accordingly. |
Share-Based Payments | Share-Based Payments – The Company grants restricted stock equivalents, which generally vest over two |
Estimated Fair Value of Financial Instruments | Estimated Fair Values of Financial Instruments – Certain financial instruments are required to be recorded at the estimated fair value. Changes in assumptions or estimation methods could affect the fair value estimates; however, we do not believe any such changes would have a material impact on our financial condition, results of operations or cash flows. Other financial instruments including cash and cash equivalents, restricted cash, and short-term borrowings, including notes payable, are recorded at cost, which approximates estimated fair value. |
Reclassifications | Reclassifications - Certain reclassifications have been made to the prior year financial statements to conform to the current presentation. |
Recently Accounting Pronouncements | Recently Adopted Accounting Pronouncements – Effective October 1, 2019, the Company adopted ASU 2016-02 and related standards (collectively ASC 842, Leases). This new guidance aligns the measurement of leases under GAAP more closely with International Financial Reporting Standards by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The Company elected the optional transition method and adopted the new guidance on a modified retrospective basis with no restatement of prior period amounts. Further, the Company elected to apply the package of practical expedients which allows companies to carry forward original lease determinations, lease classifications, and accounting for initial direct costs. Energizer also made the policy elections upon adoption for the exclusion of short term leases on the balance sheet and to not separate lease and non-lease components The adoption of ASC 842, Leases, resulted in the recognition of additional assets and corresponding liabilities on the Consolidated Balance Sheet for the Company's operating leases; however, it did not have a material impact on the Consolidated Statement of Earnings and Comprehensive Income, the Consolidated Statement of Cash Flows and the Consolidated Statement of Shareholders' Equity/(Deficit), including retained earnings. Refer to Note 11, Leases, for further information. Recently Issued Accounting Pronouncements – In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendment provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on contracts, hedging relationships and other transactions that reference LIBOR. These updates are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is currently evaluating our contracts and the optional expedients provided by this update. In August 2020, the FASB issued ASU 2020-06 Changes to Accounting for Convertible Debt. This amendment simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. The FASB has reduced the number of accounting models for convertible debt and convertible preferred stock instruments and made certain disclosure amendments to improve the information provided to financial statement users. The new guidance also modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted EPS computation. The amendment goes into effect for fiscal years starting after December 15, 2021, which for Energizer would be the beginning of fiscal year 2023. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. The Company is |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Restricted Cash | At September 30, 2020 2019 Cash and cash equivalents $ 459.8 $ 258.5 Restricted cash 790.0 — Total Cash, cash equivalents and restricted cash shown in the statement of cash flows $ 1,249.8 $ 258.5 |
Schedule of Accounts, Notes, Loans and Financing Receivable | Trade Receivables, net consists of: September 30, 2020 2019 Trade receivables $ 447.5 $ 473.1 Allowance for trade promotions (152.7) (129.1) Allowance for returns and doubtful accounts (2.8) (3.8) Trade receivables, net $ 292.0 $ 340.2 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Product and Market Information | Supplemental product and market information is presented below for revenues from external customers for the twelve months ended September 30, 2020, 2019 and 2018: For the Twelve Months Ended September 30, Net Sales 2020 2019 2018 Batteries $ 2,099.8 $ 1,959.9 $ 1,612.7 Auto Care 513.0 409.3 95.4 Lights and Licensing 132.0 125.3 89.6 Total Net Sales $ 2,744.8 $ 2,494.5 $ 1,797.7 For the Twelve Months Ended September 30, Net Sales 2020 2019 2018 North America $ 1,753.0 $ 1,534.7 $ 1,017.8 Latin America 218.2 200.1 117.8 Americas 1,971.2 1,734.8 1,135.6 Modern Markets 462.0 444.7 381.9 Developing Markets 189.6 193.4 181.0 Distributor Markets 122.0 121.6 99.2 International 773.6 759.7 662.1 Total Net Sales $ 2,744.8 $ 2,494.5 $ 1,797.7 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table outlines the purchase price allocation as of the date of acquisition: Cash and cash equivalents $ 37.8 Trade receivables 54.2 Inventories 80.8 Other current assets 28.2 Assets held for sale 794.6 Property, plant and equipment, net 133.2 Goodwill 496.0 Other intangible assets, net 805.8 Other assets 10.3 Current portion of capital leases (1.2) Accounts payable (39.2) Other current liabilities (19.3) Long-term debt (14.7) Liabilities held for sale (394.6) Other liabilities (9.5) Net assets acquired $ 1,962.4 The following table outlines the purchase price allocation as of the date of acquisition: Cash and cash equivalents $ 3.3 Trade receivables 39.7 Inventories 98.6 Other current assets 8.9 Property, plant and equipment, net 70.8 Goodwill 274.0 Other intangible assets, net 965.3 Deferred tax assets 4.2 Other assets 1.7 Current portion of capital leases (0.4) Accounts payable (28.6) Other current liabilities (10.9) Long-term debt (31.9) Other liabilities (deferred tax liabilities) (211.9) Net assets acquired $ 1,182.8 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The table below outlines the purchased identifiable intangible assets of $805.8: Total Weighted Average Useful Lives Trade names $ 587.0 Indefinite Proprietary technology 59.0 6.2 Customer relationships 159.8 15.0 Total Other intangible assets, net $ 805.8 The table below outlines the purchased identifiable intangible assets of $965.3: Total Weighted Average Useful Lives Trade names $ 701.6 Indefinite Trade names 15.4 15 Proprietary technology 113.5 9.8 Customer relationships 134.8 15 Total Other intangible assets, net $ 965.3 |
Schedule of Pro Forma Information and Significant Adjustments | For the Year Ended September 30, 2019 2018 Pro forma net sales (unaudited) $ 2,719.4 $ 2,773.7 Pro forma net earnings from continuing operations (unaudited) 159.7 40.1 Pro forma mandatory preferred stock dividends (unaudited) 16.2 16.2 Pro forma net earnings from continuing operations attributable to common shareholders (unaudited) 143.5 23.9 Pro forma diluted net earnings per common share - continuing operations (unaudited) $ 2.02 $ 0.33 Pro forma weighted average shares of common stock - Diluted (unaudited) 71.0 71.4 For the Year Ended September 30, Expense removed/(additional expense) 2019 2018 Inventory step up (unaudited) (1) $ 28.5 $ (27.8) Acquisition and integration costs (unaudited) (2) 44.3 (43.3) Interest and ticking fees on escrowed debt (unaudited) (3) 21.6 (75.7) Gains on escrowed debt (unaudited) (4) (10.5) (15.7) (1) The inventory step up was removed from fiscal 2019 and recorded in fiscal 2018 as the inventory turn would have occurred in that year. (2) Acquisition and integration costs incurred to obtain legal services, pay investment banking fees and other transaction related expenses were removed from the various periods and recorded in the first quarter of fiscal 2018 when the transaction is assumed to have occurred. (3) Interest and ticking fees from the acquisition related debt were accrued over the periods prior to the acquisition occurring. These fees were removed as they would not have been incurred if the acquisition occurred October 1, 2017. The interest from the new capital structure was included in the results and the pre-tax amount of $200.0 was included in each period. (4) The escrowed debt funds earned interest income and had gains on the non functional currency balances. These gains would not have been realized if the transaction had occurred as of October 1, 2017. For the Year Ended September 30, 2019 Battery Acquisition Auto Care Acquisition Net sales $ 338.9 $ 315.8 Inventory fair value adjustment 14.6 21.6 Earnings before income taxes 8.7 19.6 |
Divestment (Tables)
Divestment (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Assets and Liabilities and Statement of Earnings of Divested Business | The following table summarizes the assets and liabilities of the Divestment Business classified as held for sale as of September 30, 2019: September 30, 2019 Assets Trade receivables $ 50.9 Inventories 59.8 Other current assets 41.5 Property, plant and equipment, net 78.8 Goodwill 50.5 Other intangible assets, net 489.0 Other assets 21.2 Assets held for sale $ 791.7 Liabilities Current portion of capital leases $ 5.3 Accounts payable 45.9 Notes payable 0.6 Other current liabilities 99.8 Long-term debt 23.5 Deferred tax liability 169.9 Other liabilities (1) 57.9 Liabilities held for sale $ 402.9 (1) Included in other liabilities is a pension liability of $42.4 related to the Divestment Business. The following table summarizes the components of Loss from discontinued operations in the accompanying Consolidated Statement of Earnings and Comprehensive Income for the twelve months ended September 30, 2020 and 2019: For the Years Ended September 30, 2020 2019 Net sales $ 115.8 $ 235.1 Cost of products sold 88.2 180.4 Gross profit 27.6 54.7 Selling, general and administrative expense 18.0 56.8 Advertising and sales promotion expense 0.3 0.8 Research and development expense 0.8 0.8 Interest expense 12.1 15.8 Loss on sale of business 141.6 — Other items, net (3.9) (9.9) Loss before income taxes from discontinued operations (141.3) (9.6) Income tax (benefit)/provision (1.2) 4.0 Net loss from discontinued operations $ (140.1) $ (13.6) |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The pre-tax expense for charges related to the restructuring plans for the twelve months ended September 30, 2020 and 2019 are noted in the table below and were reflected in Cost of products sold and Selling, general and administrative expense on the Consolidated Statement of Earnings and Comprehensive Income: For the Year Ended September 30, 2020 2019 2019 Restructuring Program Costs of products sold Severance and related benefit costs $ 0.8 $ 9.8 Accelerated depreciation 12.0 2.3 Other exit costs (1) 16.3 — Total 2019 Restructuring costs $ 29.1 $ 12.1 2020 Restructuring Program Costs of products sold Other restructuring related costs (2) $ 0.2 $ — Selling, general and administrate expense Severance and related benefit costs 0.4 — Other restructuring related costs (2) 0.6 — Total 2020 Restructuring Costs $ 1.2 $ — Total restructuring related expense $ 30.3 $ 12.1 (1) Includes charges primarily related to environmental investigatory and mitigation costs, consulting, relocation and other facility exit costs. |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the activity related to the 2019 restructuring program for the Twelve Months Ended September 30, 2020: Utilized September 30, 2019 Charge to Income Cash Non-Cash September 30, 2020 (1) Severance & termination related costs $ 9.8 $ 0.8 $ 5.3 $ — $ 5.3 Accelerated depreciation & asset write-offs — 12.0 — 12.0 — Other exit costs — 16.3 13.4 — 2.9 Total $ 9.8 $ 29.1 $ 18.7 $ 12.0 $ 8.2 (1) At September 30, 2020 and 2019, the restructuring reserve is recorded on the Consolidated Balance Sheet in Other current liabilities of $8.2 and $9.8, respectively. The following table summarizes the activity related to the 2020 restructuring program for the Twelve Months Ended September 30, 2020: Utilized Charge to Income Cash Non-Cash September 30, 2020 (1) Severance & termination related costs $ 0.4 $ — $ — $ 0.4 Other restructuring related costs 0.8 — — $ 0.8 Total $ 1.2 $ — $ — $ 1.2 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Balance Sheet Location | As of September 30, 2020 the amounts for leases included in our Consolidated Balance Sheet include: Balance Sheet Location September 30, 2020 Operating Leases: Operating lease asset $ 121.9 Operating lease liabilities - current 14.8 Operating lease liabilities 111.9 Total Operating Lease Liabilities $ 126.7 Weighted-average remaining lease term (in years) 16.2 Weighted-average discount rate 4.2 % Finance Leases: Property, plant and equipment, net $ 43.9 Current portion of capital leases 1.7 Long-term debt 44.1 Total Finance Lease Liabilities $ 45.8 Weighted Average remaining lease term (in years) 20.4 Weighted-average discount rate 6.7 % |
Components of Lease Expense | The following table presents the components of lease expense: Twelve Months Ended September 30, 2020 Operating lease cost $ 20.4 Finance lease cost: Amortization of assets 3.2 Interest on lease liabilities 3.0 Variable lease costs 3.9 Total lease costs $ 30.5 |
Schedule of Supplemental Cash and Non-Cash Information | Supplemental cash and non-cash information related to leases: Twelve Months Ended September 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 19.3 Operating cash flows from finance leases 2.9 Financing cash flows from finance leases 1.4 Non-cash increase in lease assets and lease liabilities: Operating leases (1) (2) $ 88.4 (1) During the first quarter of fiscal 2020, Energizer entered into a material embedded lease agreement which resulted in operating lease asset and lease liabilities of approximately $34. The embedded operating lease commenced on November 1, 2019. During the second quarter of fiscal 2020, Energizer renewed the North America headquarters lease, which resulted in a material lease modification and additional operating lease assets and lease liabilities of approximately $17. During the third quarter of fiscal 2020, a material lease commenced for the Company's new battery distribution and packaging center in North America, resulting in approximately $36 of additional operating lease related assets and lease liabilities. (2) The non-cash increase in operating lease assets and liabilities above does not include the lease assets and lease liabilities recorded due to the ASC 842 implementation on October 1, 2019. |
Schedule of Finance Lease Minimum Payments | Minimum lease payments under operating and finance leases with non-cancellable terms in excess of one year as of September 30, 2020 are as follows: Operating Leases Finance Leases 2021 $ 18.9 $ 4.9 2022 18.1 5.0 2023 16.8 5.0 2024 16.2 4.9 2025 15.4 5.0 Thereafter 97.0 64.3 Total lease payments 182.4 89.1 Less: Imputed interest (55.7) (43.3) Present value of lease liabilities $ 126.7 $ 45.8 |
Schedule of Operating Lease Minimum Payments | Minimum lease payments under operating and finance leases with non-cancellable terms in excess of one year as of September 30, 2020 are as follows: Operating Leases Finance Leases 2021 $ 18.9 $ 4.9 2022 18.1 5.0 2023 16.8 5.0 2024 16.2 4.9 2025 15.4 5.0 Thereafter 97.0 64.3 Total lease payments 182.4 89.1 Less: Imputed interest (55.7) (43.3) Present value of lease liabilities $ 126.7 $ 45.8 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table represents the change in the carrying amount of goodwill at September 30, 2020 and 2019: Americas International Total Balance at September 30, 2018 $ 228.4 $ 15.8 $ 244.2 Battery acquisition 369.4 125.7 495.1 Auto Care acquisition 263.5 6.6 270.1 Cumulative translation adjustment 0.3 (4.9) (4.6) Balance at September 30, 2019 $ 861.6 $ 143.2 $ 1,004.8 Battery acquisition 0.7 0.2 0.9 Auto Care acquisition 3.8 0.1 3.9 Cumulative translation adjustment (0.3) 6.7 6.4 Balance at September 30, 2020 $ 865.8 $ 150.2 $ 1,016.0 |
Schedule of Finite-Lived Intangible Assets | Total intangible assets at September 30, 2020 are as follows: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trademarks and trade names $ 59.7 $ (13.9) $ 45.8 Customer Relationships 394.2 (60.8) 333.4 Patents 34.5 (10.8) 23.7 Proprietary technology 172.5 (37.6) 134.9 Proprietary formulas 2.4 (0.5) 1.9 Non-Compete 0.5 (0.4) 0.1 Vendor relationships 5.0 (1.2) 3.8 Total amortizable intangible assets $ 668.8 $ (125.2) $ 543.6 Trademarks and trade names - indefinite lived 1,365.4 — 1,365.4 Total Other intangible assets, net $ 2,034.2 $ (125.2) $ 1,909.0 Total intangible assets at September 30, 2019 are as follows: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trademarks and trade names $ 59.7 $ (9.9) $ 49.8 Customer Relationships 394.2 (34.3) 359.9 Patents 34.5 (8.2) 26.3 Proprietary technology 172.5 (15.7) 156.8 Proprietary formulas 2.4 (0.3) 2.1 Non-compete 0.5 (0.3) 0.2 Total amortizable intangible assets $ 663.8 $ (68.7) $ 595.1 Trademarks and trade names - indefinite lived 1,363.8 — 1,363.8 Total Other intangible assets, net $ 2,027.6 $ (68.7) $ 1,958.9 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provisions for income taxes consisted of the following: For the Years Ended September 30, 2020 2019 2018 Current: United States - Federal $ 13.5 $ 1.2 $ 42.5 State 3.0 3.0 0.1 Foreign 39.2 37.5 37.3 Total current $ 55.7 $ 41.7 $ 79.9 Deferred: United States - Federal (29.4) (22.1) 4.5 State (3.1) (4.1) (0.5) Foreign (2.3) (7.1) (2.2) Total deferred $ (34.8) $ (33.3) $ 1.8 Provision for income taxes $ 20.9 $ 8.4 $ 81.7 |
Schedule of Income before Income Tax, Domestic and Foreign | The source of pre-tax earnings was: For the Years Ended September 30, 2020 2019 2018 United States $ (114.1) $ (139.9) $ 8.7 Foreign 181.8 213.0 166.5 Pre-tax earnings $ 67.7 $ 73.1 $ 175.2 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of income taxes with the amounts computed at the statutory federal income tax rate follows: For the Years Ended September 30, 2020 2019 2018 Computed tax at federal statutory rate $ 14.2 21.0 % $ 15.3 21.0 % $ 42.9 24.5 % State income taxes, net of federal tax benefit (0.7) (1.0) (2.3) (3.2) 0.3 0.2 Foreign tax less than the federal rate 2.0 3.0 (9.0) (12.3) 0.7 0.4 Other taxes including repatriation of foreign earnings and GILTI 4.4 6.5 2.2 3.0 2.1 1.2 Foreign tax incentives (3.6) (5.3) (5.3) (7.3) (6.3) (3.6) Uncertain tax positions 2.1 3.1 1.7 2.3 4.1 2.3 Impact of the Tax Act — — (0.4) (0.5) 39.0 22.3 Nondeductible transaction expenses 1.0 1.5 4.8 6.6 — — Other, net 1.5 2.1 1.4 1.9 (1.1) (0.7) Total $ 20.9 30.9 % $ 8.4 11.5 % $ 81.7 46.6 % |
Schedule of Deferred Tax Assets and Liabilities | The deferred tax assets and deferred tax liabilities at the end of each year are as follows: September 30, 2020 2019 Deferred tax assets: Accrued liabilities $ 53.4 $ 32.4 Deferred and stock-related compensation 10.9 14.0 Tax loss carryforwards and tax credits 24.7 29.6 Intangible assets 1.9 3.3 Pension plans 17.1 22.1 Inventory differences and other tax assets 15.8 6.6 Operating lease assets 26.8 — Interest expense limited under Sec 163j 54.6 34.8 Gross deferred tax assets 205.2 142.8 Deferred tax liabilities: Depreciation and property differences (24.6) (26.7) Intangible assets (246.9) (249.1) Operating lease liabilities (26.8) — Other tax liabilities (9.9) (2.9) Gross deferred tax liabilities (308.2) (278.7) Valuation allowance (13.1) (11.9) Net deferred tax liabilities $ (116.1) $ (147.8) |
Summary of Income Tax Contingencies | The unrecognized tax benefits activity is summarized below: For the Years Ended September 30, 2020 2019 2018 Unrecognized tax benefits, beginning of year $ 12.8 $ 10.9 $ 9.5 Additions based on current year tax positions and acquisitions 0.1 — — Additions based on prior year tax positions and acquisitions 2.8 2.7 1.4 Reductions for prior year tax positions (0.6) — — Settlements with taxing authorities/statute expirations (0.9) (0.8) — Unrecognized tax benefits, end of year $ 14.2 $ 12.8 $ 10.9 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share for the years ended September 30, 2020, 2019 and 2018: For the Years Ended September 30, (in millions, except per share data) 2020 2019 2018 Basic earnings per share Net earnings from continuing operations $ 46.8 $ 64.7 $ 93.5 Mandatory preferred stock dividends (16.2) (12.0) — Net earnings from continuing operations attributable to common shareholders 30.6 52.7 93.5 Net loss from discontinued operations, net of tax (140.1) (13.6) — Net (loss) / earnings attributable to common shareholders $ (109.5) $ 39.1 $ 93.5 Weighted average common shares outstanding - basic 68.8 66.4 59.8 Basic net earnings per common share from continuing operations $ 0.44 $ 0.79 $ 1.56 Basic net loss per common share from discontinued operations (2.03) (0.20) — Basic net earnings per common share $ (1.59) $ 0.59 $ 1.56 Diluted earnings per share Net earnings attributable to common shareholders $ (109.5) $ 39.1 $ 93.5 Weighted average common shares outstanding - basic 68.8 66.4 59.8 Effect of dilutive restricted stock equivalents 0.2 0.3 0.5 Effect of dilutive performance shares 0.4 0.4 0.9 Effect of stock based deferred compensation plan 0.1 0.2 0.2 Weighted average common shares outstanding - diluted 69.5 67.3 61.4 Diluted earnings per common share from continuing operations $ 0.44 $ 0.78 $ 1.52 Diluted loss per common share from discontinued operations (2.02) (0.20) — Diluted net earnings per common share $ (1.58) $ 0.58 $ 1.52 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of RSE Activity | The following table summarizes the Company's RSE activity during the current fiscal year (shares in millions): Shares Weighted-Average Nonvested RSE at October 1, 2019 1.8 $ 47.70 Granted 0.9 $ 43.28 Vested (0.7) $ 42.70 Canceled (0.1) $ 46.66 Nonvested RSE at September 30, 2020 1.9 $ 47.56 |
Pension Plans (Tables)
Pension Plans (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | The following tables present the benefit obligation, plan assets and funded status of the plans: September 30, U.S. International 2020 2019 2020 2019 Change in Projected Benefit Obligation Benefit obligation at beginning of year $ 531.3 $ 494.5 $ 145.8 $ 142.6 Service cost — — 0.8 0.5 Interest cost 15.9 20.4 1.5 2.9 Actuarial loss/(gain) 31.3 52.2 (2.2) 22.2 Benefits paid (37.4) (35.8) (4.9) (5.3) Plan settlements — — (2.3) (10.7) Foreign currency exchange rate changes — — 9.7 (6.4) Projected Benefit Obligation at end of year $ 541.1 $ 531.3 $ 148.4 $ 145.8 Change in Plan Assets Estimated fair value of plan assets at beginning of year $ 463.5 $ 456.0 $ 122.8 $ 131.6 Actual return on plan assets 62.8 40.8 0.2 12.6 Company contributions 2.8 2.5 1.1 3.3 Plan settlements — — (2.3) (13.5) Benefits paid (37.4) (35.8) (4.9) (5.3) Foreign currency exchange rate changes — — 7.6 (5.9) Estimated fair value of plan assets at end of year $ 491.7 $ 463.5 $ 124.5 $ 122.8 Funded status at end of year $ (49.4) $ (67.8) $ (23.9) $ (23.0) |
Schedule of Defined Benefit Plans Disclosures | The following table presents the amounts recognized in the Consolidated Balance Sheets and Consolidated Statements of Shareholders’ Equity: September 30, U.S. International Amounts Recognized in the Consolidated Balance Sheets 2020 2019 2020 2019 Noncurrent assets $ — $ — $ 10.4 $ 12.1 Current liabilities (2.4) (2.4) (0.6) (0.6) Noncurrent liabilities (47.0) (65.4) (33.7) (34.5) Net amount recognized $ (49.4) $ (67.8) $ (23.9) $ (23.0) Amounts Recognized in Accumulated Other Comprehensive Loss Net loss, pre tax $ (169.1) $ (182.7) $ (42.9) $ (40.9) |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | Pre-tax changes recognized in other comprehensive loss for the year ended September 30, 2020 are as follows: Changes in plan assets and benefit obligations recognized in other comprehensive (loss)/income U.S. International Net gain/(loss) arising during the year $ 7.1 $ (1.1) Effect of exchange rates — (2.9) Amounts recognized as a component of net periodic benefit cost Amortization or settlement recognition of net gain 6.5 2.0 Total gain recognized in other comprehensive loss $ 13.6 $ (2.0) |
Schedule of Expected Benefit Payments | Energizer’s expected future benefit payments for the plans are as follows: For The Years Ending September 30, U.S. International 2021 $ 38.2 $ 5.6 2022 38.4 5.5 2023 37.9 5.4 2024 38.1 5.5 2025 36.2 5.7 2026 to 2030 163.4 29.2 |
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets | The following table shows the plans with an accumulated benefit obligation in excess of plan assets at the dates indicated. September 30, U.S. International 2020 2019 2020 2019 Projected benefit obligation $ 541.1 $ 531.3 $ 74.6 $ 73.5 Accumulated benefit obligation 541.1 531.3 72.2 71.4 Estimated fair value of plan assets 491.7 463.5 40.3 38.5 |
Schedule of Net Benefit Costs | The following table presents plan pension expense: For the Years Ended September 30, U.S. International 2020 2019 2018 2020 2019 2018 Service cost $ — $ — $ — $ 0.8 $ 0.5 $ 0.6 Interest cost 15.9 20.4 18.7 1.5 2.9 3.9 Expected return on plan assets (24.3) (26.2) (30.1) (3.6) (4.9) (6.3) Recognized net actuarial loss 6.5 4.1 4.4 1.5 0.9 2.0 Settlement loss on Canadian pension plan termination — — — — — 14.1 Settlement loss on Ireland pension plan termination — — — — 3.7 — Settlement loss recognized on other pension plans — — 0.1 0.5 0.4 1.0 Net periodic (benefit)/expense $ (1.9) $ (1.7) $ (6.9) $ 0.7 $ 3.5 $ 15.3 |
Schedule of Assumptions Used | The following table presents assumptions, which reflect weighted averages for the component plans, used in determining the above information: September 30, U.S. International 2020 2019 2018 2020 2019 2018 Plan obligations: Discount rate 2.5 % 3.1 % 4.3 % 1.0 % 1.6 % 2.1 % Compensation increase rate — — — 2.1 % 2.1 % 2.1 % Net periodic benefit cost: Discount rate 3.1 % 4.3 % 3.7 % 1.0 % 2.1 % 2.1 % Expected long-term rate of return on plan assets 5.6 % 5.9 % 6.6 % 2.8 % 3.8 % 3.8 % Compensation increase rate — — — 2.1 % 2.1 % 2.4 % |
Schedule of Allocation of Plan Assets | The following tables set forth the estimated fair value of Energizer’s plan assets as of September 30, 2020 and 2019 segregated by level within the estimated fair value hierarchy. Refer to Note 17, Financial Instruments and Risk Management, for further discussion on the estimated fair value hierarchy and estimated fair value principles. ASSETS AT ESTIMATED FAIR VALUE At September 30, 2020 U.S. Pension International Pension Level 1 Level 2 Total Level 1 Level 2 Total EQUITY U.S. Equity $ 57.8 $ — $ 57.8 $ — $ — $ — International Equity 2.4 — 2.4 — 9.8 9.8 DEBT U.S. Government — 278.1 278.1 — — — Other Government — 18.9 18.9 — 22.5 22.5 Corporate — — — — — — CASH & CASH EQUIVALENTS — — — — 0.4 0.4 OTHER — 7.3 7.3 — 7.7 7.7 Assets Measured at Net Asset Value U.S. Equity 77.6 — International Equity 49.6 21.1 Corporate — 45.2 Other — 17.8 TOTAL $ 60.2 $ 304.3 $ 491.7 $ — $ 40.4 $ 124.5 At September 30, 2019 U.S. Pension International Pension Level 1 Level 2 Total Level 1 Level 2 Total EQUITY U.S. Equity $ 66.0 $ — $ 66.0 $ — $ — $ — International Equity 3.1 — 3.1 — 8.7 8.7 DEBT U.S. Government — 276.2 276.2 — — — Other Government — 1.8 1.8 — 9.0 9.0 Corporate — — — — 30.2 30.2 CASH & CASH EQUIVALENTS — — — — 2.5 2.5 OTHER — 6.8 6.8 — 5.8 5.8 Assets measured at Net Asset Value U.S. Equity 64.6 — International Equity 45.0 28.9 Corporate — 37.7 TOTAL $ 69.1 $ 284.8 $ 463.5 $ — $ 56.2 $ 122.8 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The detail of long-term debt was as follows: September 30, 2020 2019 Senior Secured Term Loan A Facility due 2021 $ — $ 77.5 Senior Secured Term Loan B Facility due 2025 313.5 982.5 Senior Secured Term Loan A Facility due 2022 319.4 — 5.50% Senior Notes due 2025 — 600.0 6.375% Senior Notes due 2026 750.0 500.0 4.625% Senior Notes due 2026 (Euro Notes of €650.0) 761.9 708.4 7.750% Senior Notes due 2027 600.0 600.0 4.750% Senior Notes due 2028 600.0 — 4.375% Senior Notes due 2029 800.0 — Capital lease obligations 45.8 46.9 Total gross long-term debt, including current maturities $ 4,190.6 $ 3,515.3 Less current portion (843.0) (1.6) Less unamortized debt discount and debt issuance fees (40.7) (52.1) Total long-term debt $ 3,306.9 $ 3,461.6 |
Schedule of Future Minimum Lease Payments for Capital Leases | Aggregate maturities of long-term debt as of September 30, 2020 were as follows: Long-term debt 2021 $ 841.3 2022 91.3 2023 141.9 2024 10.0 2025 10.0 Thereafter 3,050.3 Total long-term debt payments due $ 4,144.8 |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following table provides the Company's estimated fair values as of September 30, 2020 and 2019, and the amounts of gains and losses on derivative instruments classified as cash flow hedges as of and for the twelve months ended September 30, 2020 and 2019, respectively: At September 30, 2020 For the Year Ended September 30, 2020 Derivatives designated as Cash Flow Hedging Relationships Estimated Fair Value (Liability) / Asset (1) (Loss) / Gain Recognized in OCI (2) Gain / (Loss) Reclassified Foreign currency contracts $ (4.9) $ (6.1) $ 3.3 Interest rate swaps (2017 and 2018) (7.3) (6.6) (4.3) Zinc contracts 4.4 3.8 (1.6) Total $ (7.8) $ (8.9) $ (2.6) At September 30, 2019 For the Year Ended September 30, 2019 Derivatives designated as Cash Flow Hedging Relationships Estimated Fair Value Asset/(Liability) (1) Gain/(Loss) Recognized in OCI (2) Gain Reclassified Foreign currency contracts $ 4.5 $ 8.6 $ 8.4 Interest rate swaps (2017 and 2018) (4.7) (11.8) 0.3 Zinc contracts (1.0) (1.0) — Total $ (1.2) $ (4.2) $ 8.7 (1) All derivative liabilities are presented in Other current liabilities or Other liabilities. All derivative assets are presented in Other current assets or Other assets. (2) OCI is defined as other comprehensive income. (3) Gain/(Loss) reclassified to Income was recorded as follows: Foreign currency contracts in Cost of products sold, interest rate contracts in Interest expense, and commodity contracts in Cost of products sold. (4) Each of these hedging relationships has derivative instruments with a high correlation to the underlying exposure being hedged and has been deemed highly effective in offsetting the underlying risk. |
Derivative Instruments, Gain (Loss) | The following table provides estimated fair values as of September 30, 2020 and 2019, and the gains on derivative instruments not classified as cash flow hedges as of and for the twelve months ended September 30, 2020 and 2019, respectively. At September 30, 2020 For the Year Ended September 30, 2020 Derivatives not designated as Cash Flow Hedging Relationships Estimated Fair Value Liability (1) Loss Recognized in Income (2) (3) Foreign currency contracts $ (0.2) $ (3.1) At September 30, 2019 For the Year Ended September 30, 2019 Derivatives not designated as Cash Flow Hedging Relationships Estimated Fair Value Asset (1) Gain Recognized in Income (2)(4) Foreign currency contracts $ 4.3 $ 5.3 (1) All derivative liabilities are presented in Other current liabilities or Other liabilities and derivative assets are presented in Other current assets or Other assets. (2) Gain (Loss) recognized in Income was recorded in Other items, net. (3) Includes a $2.2 loss on the hedge contract on the proceeds from the Varta Divestiture. (4) Includes the gain of $4.6 related to the hedge contract on the expected proceeds from the anticipated Varta Divestiture. |
Offsetting Assets | Energizer has the following recognized financial assets and financial liabilities resulting from those transactions that meet the scope of the disclosure requirements as necessitated by applicable accounting guidance for balance sheet offsetting: Offsetting of derivative assets At September 30, 2020 At September 30, 2019 Description Balance Sheet location Gross amounts of recognized assets Gross amounts offset in the Balance Sheet Net amounts of assets presented in the Balance Sheet Gross amounts of recognized assets Gross amounts offset in the Balance Sheet Net amounts of assets presented in the Balance Sheet Foreign Currency Contracts Other Current Assets, Other Assets $ 0.8 $ (0.4) $ 0.4 $ 9.4 $ (0.4) $ 9.0 Offsetting of derivative liabilities At September 30, 2020 At September 30, 2019 Description Balance Sheet location Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Foreign Currency Contracts Other Current Liabilities, Other Liabilities $ (6.0) $ 0.5 $ (5.5) $ (0.4) $ 0.2 $ (0.2) |
Offsetting Liabilities | Energizer has the following recognized financial assets and financial liabilities resulting from those transactions that meet the scope of the disclosure requirements as necessitated by applicable accounting guidance for balance sheet offsetting: Offsetting of derivative assets At September 30, 2020 At September 30, 2019 Description Balance Sheet location Gross amounts of recognized assets Gross amounts offset in the Balance Sheet Net amounts of assets presented in the Balance Sheet Gross amounts of recognized assets Gross amounts offset in the Balance Sheet Net amounts of assets presented in the Balance Sheet Foreign Currency Contracts Other Current Assets, Other Assets $ 0.8 $ (0.4) $ 0.4 $ 9.4 $ (0.4) $ 9.0 Offsetting of derivative liabilities At September 30, 2020 At September 30, 2019 Description Balance Sheet location Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Gross amounts of recognized liabilities Gross amounts offset in the Balance Sheet Net amounts of liabilities presented in the Balance Sheet Foreign Currency Contracts Other Current Liabilities, Other Liabilities $ (6.0) $ 0.5 $ (5.5) $ (0.4) $ 0.2 $ (0.2) |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table sets forth the Company's financial assets and liabilities, which are carried at fair value, as of September 30, 2020 and 2019 that are measured on a recurring basis during the period, segregated by level within the fair value hierarchy: Level 2 September 30, 2020 2019 (Liabilities)/Assets at estimated fair value: Deferred Compensation $ (26.8) $ (28.1) Exit lease liability — (0.1) Derivatives - Foreign Currency contracts (4.9) 4.5 Derivatives - Foreign Currency contracts (non-hedge) (0.2) 4.3 Derivatives - 2017 and 2018 Interest Rate Swaps (7.3) (4.7) Derivatives - Zinc contracts 4.4 $ (1.0) Net Liabilities at estimated fair value $ (34.8) $ (25.1) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss)/Income (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in accumulated other comprehensive (loss)/income (AOCI), net of tax by component: Foreign Currency Translation Adjustments Pension Activity Zinc Contracts Foreign Currency Contracts Interest Rate Swap Total Balance at September 30, 2017 $ (93.1) $ (139.4) $ — $ (4.5) $ (1.8) (238.8) OCI before reclassifications (20.5) 6.7 — 4.8 6.5 (2.5) Reclassifications to earnings — 16.2 — 3.0 0.7 19.9 Reclassifications to retained earnings — (19.9) — — (0.5) (20.4) Balance at September 30, 2018 $ (113.6) $ (136.4) $ — $ 3.3 $ 4.9 $ (241.8) OCI before reclassifications 9.0 (44.3) (0.7) 6.3 (9.0) (38.7) Reclassifications to earnings — 7.4 — (6.5) (0.2) 0.7 Activity related to discontinued operations (19.4) — 0.9 — — (18.5) Balance at September 30, 2019 $ (124.0) $ (173.3) $ 0.2 $ 3.1 $ (4.3) $ (298.3) OCI before reclassifications (32.7) 0.3 2.9 (4.7) (5.1) (39.3) Reclassifications to earnings — 6.5 1.2 (2.5) 3.3 8.5 Activity related to discontinued operations 19.3 3.0 (0.9) — — 21.4 Balance at September 30, 2020 $ (137.4) $ (163.5) $ 3.4 $ (4.1) $ (6.1) $ (307.7) |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents the reclassifications from AOCI: For the Year Ended September 30, Amount Reclassified from AOCI (1) 2020 2019 2018 Affected Line Item in the Consolidated Statements of Earnings Gains and losses on cash flow hedges Foreign exchange contracts $ (3.3) $ (8.4) $ 3.8 Cost of products sold Interest rate swaps 4.3 (0.3) 0.9 Interest expense Zinc contracts 1.6 — — Cost of products sold 2.6 (8.7) 4.7 Loss / (Earnings) before income taxes (0.6) 2.0 (1.0) Income tax (benefit) / provision $ 2.0 $ (6.7) $ 3.7 Net (earnings) / loss Amortization of defined benefit pension items Actuarial losses $ 8.0 $ 5.0 $ 6.4 (2) Settlement loss on Canadian pension plan termination — — 14.1 (2) Settlement loss on Ireland pension plan termination — 3.7 — (2) Settlement losses on other plans 0.5 0.4 1.1 (2) 8.5 9.1 21.6 Loss / (Earnings) before income taxes (2.0) (1.7) (5.4) Income tax benefit $ 6.5 $ 7.4 $ 16.2 Net (earnings) / loss Total reclassifications for the period $ 8.5 $ 0.7 $ 19.9 Net (earnings) / loss Amounts in parentheses indicate credits to Consolidated Statements of Earnings. (1) The Company adopted ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities in fiscal 2019 as discussed in Note 2, Summary of Significant Accounting Policies. The fiscal 2020 and 2019 impact is recorded in Cost of products sold and fiscal 2018 is recorded in Other items, net. (2) These AOCI components are included in the computation of net periodic benefit cost (see Note 14, Pension Plans, for further details) and recorded in Other items, net. |
Supplemental Financial Statem_2
Supplemental Financial Statement Information (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Financial Statement Related Disclosures [Abstract] | |
Supplemental Statement of Income Information | The components of certain income statement accounts are as follows: For the Years Ended September 30, Other items, net 2020 2019 2018 Interest income $ (0.6) $ (7.7) $ (1.4) Interest income on restricted cash (1) — (5.8) (5.2) Foreign currency exchange loss 8.7 5.2 8.1 Pension benefit other than service costs (2) (1.7) (2.3) (6.3) Settlement loss on pension plan terminations (2) — 3.7 14.1 Acquisition foreign currency gains (1) 2.2 (13.6) (15.2) Pre-acquisition insurance proceeds (1) (4.9) — — Settlement of acquired business hedging contracts (1) — 1.5 — Gain on sale of assets (1) (1.0) — — Transition services agreement income (1) (0.9) (1.4) — Other 0.2 6.1 (0.7) Total Other items, net $ 2.0 $ (14.3) $ (6.6) (1) See Note 4, Acquisitions, for additional information on these items. (2) See Note 14, Pension Plans, for additional information on this item. |
Supplemental Balance Sheet Information | The components of certain balance sheet accounts are as follows: September 30, Inventories 2020 2019 Raw materials and supplies $ 85.2 $ 70.5 Work in process 148.7 103.7 Finished products 277.4 295.1 Total inventories $ 511.3 $ 469.3 Other Current Assets Miscellaneous receivables $ 15.8 $ 16.5 Due from Spectrum 30.6 7.6 Prepaid expenses 76.5 71.3 Value added tax collectible from customers 20.4 23.1 Other 14.5 58.6 Total other current assets $ 157.8 $ 177.1 Property, plant and equipment Land $ 8.9 $ 9.6 Buildings 121.9 119.9 Machinery and equipment 821.4 823.0 Capital leases 51.4 50.4 Construction in progress 39.3 25.8 Total gross property 1,042.9 1,028.7 Accumulated depreciation (690.8) (666.7) Total property, plant and equipment, net $ 352.1 $ 362.0 September 30, 2020 2019 Other Current Liabilities Accrued advertising, sales promotion and allowances $ 12.1 $ 11.8 Accrued trade promotions 45.4 53.1 Accrued salaries, vacations and incentive compensation 68.1 59.2 Accrued interest expense 36.9 37.4 Accrued redemption premium 55.9 — Due to Spectrum 1.6 2.6 Accrued acquisition and integration costs 4.9 7.9 Restructuring reserve 9.4 9.8 Income taxes payable 30.2 23.4 Other 144.2 128.4 Total other current liabilities $ 408.7 $ 333.6 Other Liabilities Pensions and other retirement benefits $ 89.9 $ 109.0 Deferred compensation 26.8 28.1 Mandatory transition tax 16.7 16.7 Other non-current liabilities 78.2 50.8 Total other liabilities $ 211.6 $ 204.6 |
Schedule Of Allowance For Doubtful Accounts | For the Years Ended September 30, Allowance for Doubtful Accounts 2020 2019 2018 Balance at beginning of year $ 3.8 $ 4.0 $ 5.8 Provision charged to expense, net of reversals 1.8 1.5 (0.8) Write-offs, less recoveries, translation, other (2.8) (1.7) (1.0) Balance at end of year $ 2.8 $ 3.8 $ 4.0 |
Summary of Income Tax Valuation Allowance | For the Years Ended September 30, Income Tax Valuation Allowance 2020 2019 2018 Balance at beginning of year $ 11.9 $ 12.0 $ 19.3 Provision charged to expense, net of reversals 3.1 0.7 (7.3) Reversal of provision charged to expense (0.2) (0.4) — Translation, other (1.7) (0.4) — Balance at end of year $ 13.1 $ 11.9 $ 12.0 |
Schedule of Cash Flow, Supplemental Disclosures | For the Years Ended September 30, Certain items from Operating Cash Flow Activities 2020 2019 2018 Interest paid $ 196.0 $ 170.3 $ 54.3 Income taxes paid, net 46.7 43.3 46.2 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | For the Years Ended September 30, Net Sales 2020 2019 2018 Americas $ 1,971.2 $ 1,734.8 $ 1,135.6 International 773.6 759.7 662.1 Total net sales $ 2,744.8 $ 2,494.5 $ 1,797.7 Segment Profit Americas 498.5 456.6 326.1 International 155.8 174.9 149.6 Total segment profit $ 654.3 $ 631.5 $ 475.7 General corporate and other expenses (1) (103.8) (111.5) (97.3) Global marketing expenses (2) (28.2) (18.2) (19.0) Research and development expense (3) (34.1) (31.7) (22.4) Amortization of intangible assets (56.5) (43.2) (11.5) Acquisition and integration costs (4) (68.0) (188.4) (84.6) Settlement loss on pension plan termination (5) — (3.7) (14.1) Gain on sale of real estate — — 4.6 Loss on extinguishment of debt (94.9) — — Interest expense (6) (195.0) (160.4) (56.5) Other items, net (7) (6.1) (1.3) 0.3 Total earnings before income taxes $ 67.7 $ 73.1 $ 175.2 (1) Of this amount, $2.9 and $2.3 were recorded in Cost of products sold in the Consolidated Statement of Earnings and Comprehensive Income for the twelve months ended September 30, 2020 and 2019, respectively. All other amounts were recorded in SG&A. (2) The twelve months ended September 30, 2020 includes $12.1 recorded in SG&A and $16.1 recorded in A&P. The twelve months ended September 30, 2019 includes $6.3 recorded in SG&A and $11.9 recorded in A&P. The twelve months ended September 30, 2018 includes $4.9 recorded in SG&A and $14.1 recorded in A&P. (3) R&D expense for the twelve months ended September 30, 2020 and 2019 on the Consolidated Statement of Earnings and Comprehensive Income includes $1.3 and $1.1, respectively, which has been reclassified to Acquisition and integration costs for purposes of the reconciliation above. (4) Acquisition and integration costs were included in the following lines in the Consolidated Statement of Earnings and Comprehensive Income: For the Years Ended September 30, Acquisition and Integration Costs 2020 2019 2018 Inventory step up (COGS) $ — $ 36.2 $ 0.2 Cost of products sold 32.0 22.5 — SG&A 38.8 82.3 62.9 Research and development 1.3 1.1 — Interest expense — 65.6 41.9 Other items, net (4.1) (19.3) (20.4) Total Acquisition and Integration Costs $ 68.0 $ 188.4 $ 84.6 (5) Included in Other items, net in the Consolidated Statements of Earnings and Comprehensive Income. Refer to Note 14, Pension plans, for further information. (6) The amount for the twelve months ended September 30, 2019 and 2018 on the Consolidated Statements of Earnings and Comprehensive Income included $65.6 and $41.9 of expense, respectively, which has been reclassified to Acquisition and integration costs from Interest expense for purposes of the reconciliation above. (7) The amount for the twelve months ended September 30, 2020, 2019 and 2018 on the Consolidated Statements of Earnings and Comprehensive Income included a gain of $4.1, $19.3 and $20.4, respectively, which has been reclassified to Acquisition and integration costs from Other items, net and the Settlement loss on pension plan terminations for the twelve months ended September 30, 2019 and 2018 of $3.7 and $14.1, respectively, that have been reclassified out of Other items, net for purposes of the above reconciliation. Corporate assets shown in the following table include all financial instruments, pension assets and tax asset balances that are managed outside of operating segments. In addition, the Restricted cash held as of September 30, 2020 and the Assets held for sale at September 30, 2019 are assets utilized outside of the operating segments. September 30, Total Assets 2020 2019 Americas $ 1,238.0 $ 991.9 International 668.5 621.0 Total segment assets $ 1,906.5 $ 1,612.9 Corporate 106.8 81.3 Restricted cash 790.0 — Assets held for sale — 791.7 Goodwill and other intangible assets, net 2,925.0 2,963.7 Total assets $ 5,728.3 $ 5,449.6 September 30, Long-Lived Assets 2020 2019 United States $ 399.7 $ 275.6 Singapore 67.3 67.3 United Kingdom 62.2 46.7 Other International 63.2 59.5 Total long-lived assets excluding goodwill and intangibles $ 592.4 $ 449.1 Capital expenditures and depreciation and amortization by segment for the years ended September 30 are as follows: For the Years Ended September 30, Capital Expenditures 2020 2019 2018 Americas $ 55.0 $ 42.7 $ 16.2 International 10.3 12.4 8.0 Total segment capital expenditures $ 65.3 $ 55.1 $ 24.2 Depreciation and Amortization Americas $ 37.9 $ 34.6 $ 21.2 International 17.5 15.0 12.4 Total segment depreciation and amortization 55.4 49.6 33.6 Corporate intangible amortization 56.5 43.2 11.5 Total depreciation and amortization $ 111.9 $ 92.8 $ 45.1 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Geographic segment information for the years ended September 30 are as follows: For the Years Ended September 30, Net Sales to Customers 2020 2019 2018 United States $ 1,641.9 $ 1,435.8 $ 935.8 International 1,102.9 1,058.7 861.9 Total net sales $ 2,744.8 $ 2,494.5 $ 1,797.7 |
Quarterly Financial Informati_2
Quarterly Financial Information - (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Fiscal 2020 First Second Third Fourth Net sales $ 736.8 $ 587.0 $ 658.0 $ 763.0 Gross profit 301.3 235.6 263.2 281.8 Net earnings/(loss) from continuing operations 45.8 13.7 29.0 (41.7) Net earnings/(loss) per common share - continuing operations: Basic $ 0.60 $ 0.14 $ 0.37 $ (0.67) Diluted $ 0.60 $ 0.14 $ 0.37 $ (0.67) Items decreasing/(increasing) net earnings: Acquisition and integration costs (pre-tax) 19.3 16.9 11.4 20.4 Loss on extinguishment of debt (pre-tax) 4.2 — — 90.7 One-time impact of the CARES Act benefit/(expense) — 3.4 1.7 (3.3) Fiscal 2019 First Second Third Fourth Net sales $ 571.9 $ 556.4 $ 647.2 $ 719.0 Gross profit 275.5 194.2 246.3 287.8 Net earnings/(loss) from continuing operations 70.8 (62.3) 9.2 47.0 Net earnings/(loss) per common share - continuing operations: Basic $ 1.19 $ (0.97) $ 0.07 $ 0.62 Diluted $ 1.16 $ (0.97) $ 0.07 $ 0.62 Items decreasing/(increasing) net earnings: Acquisition and integration costs (pre-tax) 36.5 95.4 28.0 28.5 Settlement loss on Ireland pension plan termination (pre-tax) — — — 3.7 One-time impact of the new U.S. Tax Legislation benefit/(expense) 1.5 — (0.8) (1.1) |
Description of Business and B_2
Description of Business and Basis of Presentation (Narrative) (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations € in Millions, $ in Millions | Jan. 02, 2020EUR (€) | Jan. 02, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) |
Business Acquisition [Line Items] | ||||
Total proceeds anticipated | $ 6.9 | |||
VARTAAG | Divestment Business | ||||
Business Acquisition [Line Items] | ||||
Purchase price | € | € 180 | |||
Total proceeds anticipated | $ 323.1 | |||
Pre-tax loss | $ 141.6 | $ 0 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | ||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Apr. 22, 2020 | Oct. 01, 2019 | Apr. 01, 2019 | Feb. 28, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||||||
Maximum amount authorized to sell | $ 500,000,000 | ||||||
Receivables sold under program | 439,500,000 | $ 300,200,000 | |||||
Outstanding sold receivables | 132,900,000 | 87,800,000 | |||||
Receivables collected but not yet due | 500,000 | 12,400,000 | |||||
Fees associated with factoring | 4,700,000 | 4,900,000 | |||||
Amortization expense | 8,100,000 | 9,100,000 | $ 7,400,000 | ||||
Depreciation excluding accelerated | 63,200,000 | 43,500,000 | 26,200,000 | ||||
Accelerated depreciation | 15,900,000 | 3,000,000 | |||||
Advertising costs | 115,100,000 | 96,700,000 | $ 80,100,000 | ||||
Operating lease assets | 121,900,000 | 0 | |||||
Operating lease liability | 126,700,000 | ||||||
Cash and cash equivalents | 459,800,000 | 258,500,000 | |||||
Interest Rate Swap | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Variable rate debt hedged | 200,000,000 | $ 200,000,000 | |||||
Interest rate on derivative instrument | 2.47% | ||||||
Notional value | $ 100,000,000 | $ 50,000,000 | $ 400,000,000 | ||||
Minimum | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Amortization period, years | 3 years | ||||||
Minimum | Computer Software, Intangible Asset | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Amortization period, years | 3 years | ||||||
Minimum | Pro Forma | Accounting Standards Update 2016-02 | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Operating lease liability | $ 40,000,000 | ||||||
Maximum | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Amortization period, years | 15 years | ||||||
Maximum | Computer Software, Intangible Asset | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Amortization period, years | 7 years | ||||||
Maximum | Pro Forma | Accounting Standards Update 2016-02 | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Operating lease liability | $ 45,000,000 | ||||||
Machinery and Equipment | Minimum | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Estimated useful life, years | 2 years | ||||||
Machinery and Equipment | Maximum | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Estimated useful life, years | 25 years | ||||||
Building and Building Improvements | Minimum | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Estimated useful life, years | 3 years | ||||||
Building and Building Improvements | Maximum | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Estimated useful life, years | 30 years | ||||||
Restricted Stock Equivalents | Minimum | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Vesting period, in years | 2 years | ||||||
Restricted Stock Equivalents | Maximum | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Vesting period, in years | 4 years | ||||||
Senior Notes, 4.375%, Due 2029 | Senior Notes | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Face amount of debt | $ 800,000,000 | ||||||
Stated interest rate of debt | 4.375% | ||||||
6.375% Senior Notes due 2026 | Senior Notes | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Face amount of debt | $ 250,000,000 | ||||||
Stated interest rate of debt | 6.375% | 6.375% | |||||
International | Cash | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Percentage of cash outside of the U.S. | 61.80% | 75.80% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Restricted Cash) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Accounting Policies [Abstract] | ||
Cash and cash equivalents | $ 459.8 | $ 258.5 |
Restricted cash | 790 | 0 |
Restricted cash | 0 | |
Total Cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 1,249.8 | $ 258.5 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Schedule of Accounts, Notes, Loans and Financing Receivable) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Accounting Policies [Abstract] | ||
Trade receivables | $ 447.5 | $ 473.1 |
Allowance for trade promotions | (152.7) | (129.1) |
Allowance for returns and doubtful accounts | (2.8) | (3.8) |
Trade receivables, net | $ 292 | $ 340.2 |
Spin Costs (Narrative) (Details
Spin Costs (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Spin-off costs to date | $ 197.6 | |||
Spin-off | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Spin costs | $ (2.5) | $ (1.3) | $ (3.8) | |
Spin-off | Americas Segment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Spin costs | (1.3) | |||
Spin-off | Corporate Segment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Spin costs | $ (2.5) |
Revenue (Schedule of Product an
Revenue (Schedule of Product and Market Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 763 | $ 658 | $ 587 | $ 736.8 | $ 719 | $ 647.2 | $ 556.4 | $ 571.9 | $ 2,744.8 | $ 2,494.5 | $ 1,797.7 |
Modern Markets | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 462 | 444.7 | 381.9 | ||||||||
Developing Markets | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 189.6 | 193.4 | 181 | ||||||||
Distributor Markets | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 122 | 121.6 | 99.2 | ||||||||
North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,753 | 1,534.7 | 1,017.8 | ||||||||
Latin America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 218.2 | 200.1 | 117.8 | ||||||||
Americas | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,971.2 | 1,734.8 | 1,135.6 | ||||||||
International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 773.6 | 759.7 | 662.1 | ||||||||
Batteries | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,099.8 | 1,959.9 | 1,612.7 | ||||||||
Auto Care | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 513 | 409.3 | 95.4 | ||||||||
Lights and Licensing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 132 | $ 125.3 | $ 89.6 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Oct. 01, 2020 | Jan. 31, 2020 | Jan. 28, 2020 | Jan. 28, 2019 | Jan. 02, 2019 | Nov. 15, 2018 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Business Acquisition [Line Items] | |||||||||||||||||
Cash | $ 5.1 | $ 2,460 | $ 38.1 | ||||||||||||||
Inventory adjustment | 28.5 | (27.8) | |||||||||||||||
Restructuring costs | 30.3 | 12.1 | |||||||||||||||
Integration Related Costs | $ 20.4 | $ 11.4 | $ 16.9 | $ 19.3 | $ 28.5 | $ 28 | $ 95.4 | $ 36.5 | 68 | 188.4 | 84.6 | ||||||
Pre-tax gain related to favorable movement in escrowed restricted cash | 9 | ||||||||||||||||
Transition services income | (0.9) | 1.4 | 0 | ||||||||||||||
Expense to settle hedge contracts for acquired business | 0 | 1.5 | 0 | ||||||||||||||
Interest income on restricted cash | 0 | 5.8 | 5.2 | ||||||||||||||
Tax withholding costs related to business acquisition | 6 | ||||||||||||||||
Fair Value Adjustment to Inventory [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Integration Related Costs | 36.2 | ||||||||||||||||
Divestment Business | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Gain (loss) related to hedge contract | (4.6) | ||||||||||||||||
Selling, General and Administrative Expenses | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Integration Related Costs | 38.8 | 82.3 | 62.9 | ||||||||||||||
Cost of Products Sold | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Restructuring costs | 29.3 | 12.1 | |||||||||||||||
Integration Related Costs | 32 | 58.7 | 0.2 | ||||||||||||||
Research and Development | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Integration Related Costs | 1.3 | 1.1 | 0 | ||||||||||||||
Interest Expense | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Integration Related Costs | 0 | 65.6 | 41.9 | ||||||||||||||
Other financing items, net | 65.6 | 41.9 | |||||||||||||||
Other items, net | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Gain (loss) related to hedge contract | 0.5 | ||||||||||||||||
Gain/expense reclassified to acquisitions and integration costs | (4.1) | (19.3) | (20.4) | ||||||||||||||
Other items, net | USD Locked Contract | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Gain (loss) related to hedge contract | (9.4) | ||||||||||||||||
Other items, net | USD Restricted Cash Held in European Euro Functional Entity | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Gain (loss) related to hedge contract | (5.8) | ||||||||||||||||
Custom Accessories Europe Group International Limited | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Cash | $ 1.9 | ||||||||||||||||
Earnout payment | 0.6 | ||||||||||||||||
Consideration transferred | 6.4 | ||||||||||||||||
Custom Accessories Europe Group International Limited | Vendor relationships | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite intangible assets acquired | 5 | ||||||||||||||||
Custom Accessories Europe Group International Limited | Certain Financial Metrics | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Expected net purchase price | $ 9.9 | ||||||||||||||||
FDK Indonesia | Subsequent Event | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Cash | $ 16.9 | ||||||||||||||||
Consideration transferred | $ 18.2 | ||||||||||||||||
Battery Acquisition | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Cash | $ 2,000 | ||||||||||||||||
Finite intangible assets acquired | 805.8 | ||||||||||||||||
Net assets acquired | 1,962.4 | ||||||||||||||||
Additional amount in connection with divestiture | $ 400 | ||||||||||||||||
Inventory adjustment | 14.6 | 11.2 | |||||||||||||||
Decrease in goodwill | 587 | ||||||||||||||||
Interest income on restricted cash | 5.8 | ||||||||||||||||
Battery Acquisition | Selling, General and Administrative Expenses | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Integration Related Costs | 38.8 | 82.3 | 62.9 | ||||||||||||||
Battery Acquisition | Other items, net | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Gain/expense reclassified to acquisitions and integration costs | 15.2 | ||||||||||||||||
Spectrum Auto Care Acquisition | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Cash | $ 937.5 | 3.6 | |||||||||||||||
Expected net purchase price | $ 938.7 | $ 3.6 | |||||||||||||||
Consideration transferred | 1,250 | ||||||||||||||||
Finite intangible assets acquired | 965.3 | ||||||||||||||||
Net assets acquired | 1,182.8 | ||||||||||||||||
Inventory adjustment | 21.6 | ||||||||||||||||
Decrease in goodwill | 701.6 | ||||||||||||||||
Newly-issued equity for acquisition | $ 5.3 | 1.7 | $ 312.5 | ||||||||||||||
Fair value of equity in acquisition | $ 240.5 | ||||||||||||||||
Shares issued in acquisition (in shares) | 5.3 | ||||||||||||||||
Closing stock price (in dollars per share) | $ 45.55 | ||||||||||||||||
NRV, cost to seel | 107.2 | ||||||||||||||||
Goodwill, Impairment Loss | 92.5 | ||||||||||||||||
Spectrum Auto Care Acquisition | Pro Forma | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Charge to Income | 18.4 | ||||||||||||||||
Battery Acquisition, Spectrum Auto Care Acquisition and Nu Finish Acquisition | Selling, General and Administrative Expenses | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Integration Related Costs | $ 68 | $ 188.4 | $ 84.6 |
Acquisitions (Schedule of Recog
Acquisitions (Schedule of Recognized Identified Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 | Jan. 28, 2019 | Jan. 02, 2019 | Sep. 30, 2018 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 1,016 | $ 1,004.8 | $ 244.2 | ||
Battery Acquisition | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 37.8 | ||||
Trade receivables | 54.2 | ||||
Inventories | 80.8 | ||||
Other current assets | 28.2 | ||||
Assets held for sale | 794.6 | ||||
Property, plant and equipment, net | 133.2 | ||||
Goodwill | 496 | ||||
Other intangible assets, net | 805.8 | ||||
Other assets | 10.3 | ||||
Current portion of capital leases | (1.2) | ||||
Accounts payable | (39.2) | ||||
Other current liabilities | (19.3) | ||||
Long-term debt | (14.7) | ||||
Liabilities held for sale | (394.6) | ||||
Other liabilities | (9.5) | ||||
Net assets acquired | $ 1,962.4 | ||||
Spectrum Auto Care Acquisition | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 3.3 | ||||
Trade receivables | 39.7 | ||||
Inventories | 98.6 | ||||
Other current assets | 8.9 | ||||
Property, plant and equipment, net | 70.8 | ||||
Goodwill | 274 | ||||
Other intangible assets, net | 965.3 | ||||
Deferred tax assets | 4.2 | ||||
Other assets | 1.7 | ||||
Current portion of capital leases | (0.4) | ||||
Accounts payable | (28.6) | ||||
Other current liabilities | (10.9) | ||||
Long-term debt | (31.9) | ||||
Other liabilities (deferred tax liabilities) | (211.9) | ||||
Net assets acquired | $ 1,182.8 |
Acquisitions (Schedule of Acqui
Acquisitions (Schedule of Acquired Finite-Lived Intangible Assets by Major Class) (Details) - USD ($) $ in Millions | Jan. 28, 2019 | Jan. 02, 2019 | Sep. 30, 2020 |
Battery Acquisition | |||
Business Acquisition [Line Items] | |||
Decrease in goodwill | $ 587 | ||
Other intangible assets, net | $ 805.8 | ||
Finite intangible assets acquired | 805.8 | ||
Battery Acquisition | Proprietary technology | |||
Business Acquisition [Line Items] | |||
Finite intangible assets acquired | $ 59 | ||
Weighted Average Useful Lives | 6 years 2 months 12 days | ||
Battery Acquisition | Customer relationships | |||
Business Acquisition [Line Items] | |||
Finite intangible assets acquired | $ 159.8 | ||
Weighted Average Useful Lives | 15 years | ||
Spectrum Auto Care Acquisition | |||
Business Acquisition [Line Items] | |||
Decrease in goodwill | $ 701.6 | ||
Other intangible assets, net | $ 965.3 | ||
Finite intangible assets acquired | 965.3 | ||
Spectrum Auto Care Acquisition | Trade names | |||
Business Acquisition [Line Items] | |||
Finite intangible assets acquired | $ 15.4 | ||
Weighted Average Useful Lives | 15 years | ||
Spectrum Auto Care Acquisition | Proprietary technology | |||
Business Acquisition [Line Items] | |||
Finite intangible assets acquired | $ 113.5 | ||
Weighted Average Useful Lives | 9 years 9 months 18 days | ||
Spectrum Auto Care Acquisition | Customer relationships | |||
Business Acquisition [Line Items] | |||
Finite intangible assets acquired | $ 134.8 | ||
Weighted Average Useful Lives | 15 years |
Acquisitions (Schedule of Pro F
Acquisitions (Schedule of Pro Forma Information and Significant Adjustments) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Business Acquisition [Line Items] | |||||||||||
Pro forma net sales (unaudited) | $ 2,719.4 | $ 2,773.7 | |||||||||
Pro forma net earnings from continuing operations (unaudited) | 159.7 | 40.1 | |||||||||
Pro forma mandatory preferred stock dividends (unaudited) | 16.2 | 16.2 | |||||||||
Pro forma net earnings from continuing operations attributable to common shareholders (unaudited) | $ 143.5 | $ 23.9 | |||||||||
Pro forma diluted net earnings per common share - continuing operations (unaudited) (in dollars per share) | $ 2.02 | $ 0.33 | |||||||||
Pro forma weighted average shares of common stock - Diluted (unaudited) (in shares) | 71 | 71.4 | |||||||||
Inventory step up (unaudited) | $ 28.5 | $ (27.8) | |||||||||
Acquisition and integration costs (unaudited) | 44.3 | (43.3) | |||||||||
Interest and ticking fees on escrowed debt (unaudited) | 21.6 | (75.7) | |||||||||
Gains on escrowed debt (unaudited) | (10.5) | (15.7) | |||||||||
Interest from new capital structure | $ 200 | ||||||||||
Net sales | $ 763 | $ 658 | $ 587 | $ 736.8 | $ 719 | $ 647.2 | $ 556.4 | $ 571.9 | 2,744.8 | 2,494.5 | 1,797.7 |
Earnings before income taxes | 67.7 | 73.1 | $ 175.2 | ||||||||
Battery Acquisition | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Inventory step up (unaudited) | 14.6 | $ 11.2 | |||||||||
Net sales | 338.9 | ||||||||||
Earnings before income taxes | 8.7 | ||||||||||
Spectrum Auto Care Acquisition | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Inventory step up (unaudited) | 21.6 | ||||||||||
Net sales | 315.8 | ||||||||||
Earnings before income taxes | $ 19.6 |
Divestment (Narrative) (Details
Divestment (Narrative) (Details) € in Millions, $ in Millions | Jan. 02, 2020EUR (€) | Jan. 02, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Total proceeds anticipated | $ 6.9 | |||
Divestment related pre-tax costs | 1.7 | |||
Pre-tax interest expense | $ 5 | |||
Divestment Business | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Divestment related pre-tax costs | $ 13.8 | |||
Pre-tax interest expense | $ 14.9 | |||
Divestment Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | VARTAAG | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Purchase price | € | € 180 | |||
Total proceeds anticipated | $ 323.1 |
Divestment (Schedule of Summari
Divestment (Schedule of Summarized Financial Information of Divestment Business Classified as Held For Sale) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Assets | |||
Trade receivables | $ 50.9 | ||
Inventories | 59.8 | ||
Other current assets | 41.5 | ||
Property, plant and equipment, net | 78.8 | ||
Goodwill | 50.5 | ||
Other intangible assets, net | 489 | ||
Other assets | 21.2 | ||
Assets held for sale | $ 0 | 791.7 | |
Liabilities | |||
Current portion of capital leases | 5.3 | ||
Accounts payable | 45.9 | ||
Notes payable | 0.6 | ||
Other current liabilities | 99.8 | ||
Long-term debt | 23.5 | ||
Deferred tax liability | 169.9 | ||
Other liabilities | 57.9 | ||
Liabilities held for sale | 402.9 | ||
Pension liability related to Divestment Business | 42.4 | ||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Net sales | 115.8 | 235.1 | |
Cost of products sold | 88.2 | 180.4 | |
Gross profit | 27.6 | 54.7 | |
Selling, general and administrative expense | 18 | 56.8 | |
Advertising and sales promotion expense | 0.3 | 0.8 | |
Research and development expense | 0.8 | 0.8 | |
Loss on sale of business | 12.1 | 15.8 | |
Other items, net | 3.9 | 9.9 | |
Loss before income taxes from discontinued operations | (141.3) | (9.6) | |
Income tax (benefit)/provision | 1.2 | (4) | |
Loss from discontinued operations, net of tax | $ (140.1) | $ (13.6) | $ 0 |
Restructuring (Narrative) (Deta
Restructuring (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 30.3 | $ 12.1 | ||
Americas | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 27.5 | 6 | ||
International | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 2.8 | $ 6.1 | ||
Scenario, Forecast | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected restructuring cost | $ 34 | |||
Scenario, Forecast | Restructuring Program, Cost Structure | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected restructuring cost | $ 10 | |||
Scenario, Forecast | Restructuring Program, Cost Structure | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected restructuring cost | $ 12 |
Restructuring (Restructuring an
Restructuring (Restructuring and Related Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring related expense | $ 30.3 | $ 12.1 |
2019 Integration Related Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Charge to Income | 29.1 | 12.1 |
2019 Integration Related Restructuring Program | Cost of products sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and related benefit costs | 0.8 | 9.8 |
Accelerated depreciation | 12 | 2.3 |
Other costs | 16.3 | 0 |
2020 Cost Structure Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Charge to Income | 1.2 | 0 |
2020 Cost Structure Restructuring Program | Cost of products sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Other costs | 0.2 | 0 |
2020 Cost Structure Restructuring Program | Selling, General and Administrative Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and related benefit costs | 0.4 | 0 |
Other costs | $ 0.6 | $ 0 |
Restructuring (Restructuring Re
Restructuring (Restructuring Reserve by Type of Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
2019 Integration Related Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Beginning Balance | $ 9.8 | |
Restructuring Charges | 29.1 | $ 12.1 |
Utilized, Cash | 18.7 | |
Utilized, Non-Cash | 12 | |
Restructuring Reserve, Ending Balance | 8.2 | 9.8 |
2020 Cost Structure Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 1.2 | 0 |
Utilized, Cash | 0 | |
Utilized, Non-Cash | 0 | |
Restructuring Reserve, Ending Balance | 1.2 | |
2020 Cost Structure Restructuring Program | Other Current Liabilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Ending Balance | 1.2 | |
Severance & termination related costs | 2019 Integration Related Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Beginning Balance | 9.8 | |
Restructuring Charges | 0.8 | |
Utilized, Cash | 5.3 | |
Utilized, Non-Cash | 0 | |
Restructuring Reserve, Ending Balance | 5.3 | 9.8 |
Severance & termination related costs | 2020 Cost Structure Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 0.4 | |
Utilized, Cash | 0 | |
Utilized, Non-Cash | 0 | |
Restructuring Reserve, Ending Balance | 0.4 | |
Accelerated depreciation & asset write-offs | 2019 Integration Related Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Beginning Balance | 0 | |
Restructuring Charges | 12 | |
Utilized, Cash | 0 | |
Utilized, Non-Cash | 12 | |
Restructuring Reserve, Ending Balance | 0 | 0 |
Other exit costs | 2019 Integration Related Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Beginning Balance | 0 | |
Restructuring Charges | 16.3 | |
Utilized, Cash | 13.4 | |
Utilized, Non-Cash | 0 | |
Restructuring Reserve, Ending Balance | 2.9 | $ 0 |
Other exit costs | 2020 Cost Structure Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 0.8 | |
Utilized, Cash | 0 | |
Utilized, Non-Cash | 0 | |
Restructuring Reserve, Ending Balance | $ 0.8 |
Leases - Balance Sheet Location
Leases - Balance Sheet Location (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Operating Leases: | ||
Operating lease asset | $ 121.9 | $ 0 |
Operating lease liabilities - current | 14.8 | 0 |
Operating lease liabilities | 111.9 | 0 |
Total Operating Lease Liabilities | $ 126.7 | |
Weighted-average remaining lease term (in years) | 16 years 2 months 12 days | |
Weighted-average discount rate | 4.20% | |
Finance Leases: | ||
Property, plant and equipment, net | $ 43.9 | |
Current portion of capital leases | 1.7 | |
Long-term debt | 44.1 | |
Total Finance Lease Liabilities | $ 45.8 | $ 46.9 |
Weighted Average remaining lease term (in years) | 20 years 4 months 24 days | |
Weighted-average discount rate | 6.70% |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2020USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 20.4 |
Finance lease cost: | |
Amortization of assets | 3.2 |
Interest on lease liabilities | 3 |
Variable lease costs | 3.9 |
Total lease costs | $ 30.5 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash and Non-Cash Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 19.3 | |
Operating cash flows from finance leases | 2.9 | |
Financing cash flows from finance leases | 1.4 | |
Non-cash increase in lease assets and lease liabilities: | ||
Operating leases | 88.4 | |
Operating lease assets | 121.9 | $ 0 |
Operating lease assets | 121.9 | $ 0 |
Additional operating lease related assets and lease liabilities | 36 | |
Embedded Lease Agreement | ||
Non-cash increase in lease assets and lease liabilities: | ||
Operating lease assets | 34 | |
Operating lease assets | 34 | |
North America Headquarters | ||
Non-cash increase in lease assets and lease liabilities: | ||
Operating lease assets | 17 | |
Operating lease assets | $ 17 |
Leases Leases - Schedule of Min
Leases Leases - Schedule of Minimum Lease Payments (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Operating Leases | ||
2020 | $ 18.9 | |
2021 | 18.1 | |
2022 | 16.8 | |
2023 | 16.2 | |
2024 | 15.4 | |
Thereafter | 97 | |
Total lease payments | 182.4 | |
Less: Imputed interest | (55.7) | |
Operating lease liability | 126.7 | |
Finance Leases | ||
2020 | 4.9 | |
2021 | 5 | |
2022 | 5 | |
2023 | 4.9 | |
2024 | 5 | |
Thereafter | 64.3 | |
Total lease payments | 89.1 | |
Less: Imputed interest | (43.3) | |
Present value of lease liabilities | $ 45.8 | $ 46.9 |
Goodwill and intangible asset_2
Goodwill and intangible assets (Schedule of Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 1,004.8 | $ 244.2 |
Cumulative translation adjustment | 6.4 | (4.6) |
Ending Balance | 1,016 | 1,004.8 |
Battery Acquisition | ||
Goodwill [Roll Forward] | ||
Acquisition | 0.9 | 495.1 |
Spectrum Auto Care Acquisition | ||
Goodwill [Roll Forward] | ||
Acquisition | 3.9 | 270.1 |
Americas | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 861.6 | 228.4 |
Cumulative translation adjustment | (0.3) | 0.3 |
Ending Balance | 865.8 | 861.6 |
Americas | Battery Acquisition | ||
Goodwill [Roll Forward] | ||
Acquisition | 0.7 | 369.4 |
Americas | Spectrum Auto Care Acquisition | ||
Goodwill [Roll Forward] | ||
Acquisition | 3.8 | 263.5 |
International | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 143.2 | 15.8 |
Cumulative translation adjustment | 6.7 | (4.9) |
Ending Balance | 150.2 | 143.2 |
International | Battery Acquisition | ||
Goodwill [Roll Forward] | ||
Acquisition | 0.2 | 125.7 |
International | Spectrum Auto Care Acquisition | ||
Goodwill [Roll Forward] | ||
Acquisition | $ 0.1 | $ 6.6 |
Goodwill and intangible asset_3
Goodwill and intangible assets (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-live intangible assets | $ 1,365.4 | $ 1,363.8 | |
Cumulative translation adjustment | $ 6.4 | (4.6) | |
Remaining life (in years) | 11 years | ||
Amortization of intangible assets | $ 56.5 | $ 43.2 | $ 11.5 |
Amortization expense next year | 57.1 | ||
Amortization expense year two | 56.9 | ||
Amortization expense year three | 52.1 | ||
Amortization expense year four | 50.7 | ||
Amortization expense year five | 50.6 | ||
Amortization expense thereafter | $ 276.2 | ||
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period, years | 3 years | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period, years | 15 years | ||
Battery Acquisition | |||
Finite-Lived Intangible Assets [Line Items] | |||
Increase in goodwill | $ 587 | ||
Spectrum Auto Care Acquisition | |||
Finite-Lived Intangible Assets [Line Items] | |||
Increase in goodwill | $ 701.6 |
Goodwill and intangible asset_4
Goodwill and intangible assets (Schedule of Finite-Lived Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Remaining life (in years) | 11 years | |
Gross Carrying Amount | $ 668.8 | $ 663.8 |
Accumulated Amortization | (125.2) | (68.7) |
Net Carrying Amount | 543.6 | 595.1 |
Trademarks and trade names - indefinite lived | 1,365.4 | 1,363.8 |
Gross Carrying Amount | 2,034.2 | 2,027.6 |
Net Carrying Amount | 1,909 | 1,958.9 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 59.7 | 59.7 |
Accumulated Amortization | (13.9) | (9.9) |
Net Carrying Amount | 45.8 | 49.8 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 394.2 | 394.2 |
Accumulated Amortization | (60.8) | (34.3) |
Net Carrying Amount | 333.4 | 359.9 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 34.5 | 34.5 |
Accumulated Amortization | (10.8) | (8.2) |
Net Carrying Amount | 23.7 | 26.3 |
Proprietary technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 172.5 | 172.5 |
Accumulated Amortization | (37.6) | (15.7) |
Net Carrying Amount | 134.9 | 156.8 |
Proprietary formulas | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2.4 | 2.4 |
Accumulated Amortization | (0.5) | (0.3) |
Net Carrying Amount | 1.9 | 2.1 |
Non-Compete | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 0.5 | 0.5 |
Accumulated Amortization | (0.4) | (0.3) |
Net Carrying Amount | 0.1 | $ 0.2 |
Vendor relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5 | |
Accumulated Amortization | (1.2) | |
Net Carrying Amount | $ 3.8 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 12 Months Ended | ||
Sep. 30, 2020USD ($)Jurisdiction | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Operating Loss Carryforwards [Line Items] | |||
CARES act, unfavorable impace | $ 1,800,000 | ||
Increase in tax expense | $ 3,000,000 | ||
Tax expense | 400,000 | 36,000,000 | |
Total impact of transition tax | 35.6 | ||
Basis differential of investment in foreign affiliates considered indefinitely invested | 780,000,000 | ||
Potential U.S. tax if all unrealized basis differences were repatriated | 165,000,000 | ||
Tax loss carryforwards and tax credits without expiration | 13,300,000 | ||
Accrued interest | 5,600,000 | 4,900,000 | $ 3,200,000 |
Deferred tax asset related to accrued interest | 800,000 | 700,000 | 400,000 |
Penalties | $ 4,000,000 | $ 3,900,000 | $ 3,800,000 |
Number of foreign jurisdictions | Jurisdiction | 60 | ||
Between 2018 and 2020 | |||
Operating Loss Carryforwards [Line Items] | |||
Tax loss carryforwards | $ 7,800,000 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Current: | |||
United States - Federal | $ 13.5 | $ 1.2 | $ 42.5 |
State | 3 | 3 | 0.1 |
Foreign | 39.2 | 37.5 | 37.3 |
Total current | 55.7 | 41.7 | 79.9 |
Deferred: | |||
United States - Federal | (29.4) | (22.1) | 4.5 |
State | (3.1) | (4.1) | (0.5) |
Foreign | (2.3) | (7.1) | (2.2) |
Total deferred | (34.8) | (33.3) | 1.8 |
Provision for income taxes | $ 20.9 | $ 8.4 | $ 81.7 |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income before Income Tax, Domestic and Foreign) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (114.1) | $ (139.9) | $ 8.7 |
Foreign | 181.8 | 213 | 166.5 |
Earnings before income taxes | $ 67.7 | $ 73.1 | $ 175.2 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Computed tax at federal statutory rate | $ 14.2 | $ 15.3 | $ 42.9 |
State income taxes, net of federal tax benefit | (0.7) | (2.3) | 0.3 |
Foreign tax less than the federal rate | 2 | (9) | 0.7 |
Other taxes including repatriation of foreign earnings and GILTI | 4.4 | 2.2 | 2.1 |
Foreign tax incentives | (3.6) | (5.3) | (6.3) |
Uncertain tax positions | 2.1 | 1.7 | 4.1 |
Impact of the Tax Act | 0 | (0.4) | 39 |
Nondeductible transaction expenses | 1 | 4.8 | 0 |
Other, net | 1.5 | 1.4 | (1.1) |
Provision for income taxes | $ 20.9 | $ 8.4 | $ 81.7 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Computed tax at federal statutory rate, percent | 21.00% | 21.00% | 24.50% |
State income taxes, net of federal tax benefit, percent | (1.00%) | (3.20%) | 0.20% |
Foreign tax less than the federal rate, percent | 3.00% | (12.30%) | 0.40% |
Other taxes including repatriation of foreign earnings, percent | 6.50% | 3.00% | 1.20% |
Foreign tax incentives, period | (5.30%) | (7.30%) | (3.60%) |
Uncertain tax positions | 3.10% | 2.30% | 2.30% |
Impact of the Tax Act, percent | 0.00% | (0.50%) | 22.30% |
Nondeductible transaction expenses, percent | 1.50% | 6.60% | 0.00% |
Other, net, percent | 2.10% | 1.90% | (0.70%) |
Effective Income Tax Rate Reconciliation, Percent | 30.90% | 11.50% | 46.60% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Income Tax Disclosure [Abstract] | ||
Accrued liabilities | $ 53.4 | $ 32.4 |
Deferred and stock-related compensation | 10.9 | 14 |
Tax loss carryforwards and tax credits | 24.7 | 29.6 |
Intangible assets | 1.9 | 3.3 |
Pension plans | 17.1 | 22.1 |
Inventory differences and other tax assets | 15.8 | 6.6 |
Operating lease assets | 26.8 | 0 |
Interest expense limited under Sec 163j | 54.6 | 34.8 |
Gross deferred tax assets | 205.2 | 142.8 |
Depreciation and property differences | (24.6) | (26.7) |
Intangible assets | (246.9) | (249.1) |
Deferred Tax Liabilities, Operating Lease, Liability | (26.8) | 0 |
Other tax liabilities | (9.9) | (2.9) |
Gross deferred tax liabilities | (308.2) | (278.7) |
Valuation allowance | (13.1) | (11.9) |
Net deferred tax liabilities | $ (116.1) | $ (147.8) |
Income Taxes (Summary of Income
Income Taxes (Summary of Income Tax Contingencies) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning of year | $ 12,800,000 | $ 10,900,000 | $ 9,500,000 |
Additions based on current year tax positions and acquisitions | 100,000 | 0 | 0 |
Additions based on prior year tax positions and acquisitions | 2,800,000 | 2,700,000 | 1,400,000 |
Reductions for prior year tax positions | (600,000) | 0 | 0 |
Settlements with taxing authorities/statute expirations | (900,000) | (800,000) | 0 |
Unrecognized tax benefits, end of year | $ 14,200,000 | $ 12,800,000 | $ 10,900,000 |
Earnings per share (Narrative)
Earnings per share (Narrative) (Details) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Deferred compensation plan | $ 0.2 | $ 0.2 | $ 12 |
Shares reserved for issuance (in shares) | 85 | ||
Performance Based Restricted Stock | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Performance based restricted stock equivalents excluded from computation (in shares) | 1,100 | 900 | 500 |
Earnings per share (Schedule of
Earnings per share (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Net earnings from continuing operations | $ 46.8 | $ 64.7 | $ 93.5 | ||||||||
Mandatory preferred stock dividends | (16.2) | (12) | 0 | ||||||||
Net earnings from continuing operations attributable to common shareholders | 30.6 | 52.7 | 93.5 | ||||||||
Loss from discontinued operations, net of tax | (140.1) | (13.6) | 0 | ||||||||
Net (loss) / earnings attributable to common shareholders | $ (109.5) | $ 39.1 | $ 93.5 | ||||||||
Basic average shares outstanding (in shares) | 68.8 | 66.4 | 59.8 | ||||||||
Basic net earnings per common share - continuing operations (in dollars per share) | $ 0.44 | $ 0.79 | $ 1.56 | ||||||||
Basic net loss per common share - discontinued operations (in dollars per share) | (2.03) | (0.20) | 0 | ||||||||
Basic net earnings per common share (in dollars per share) | $ (0.67) | $ 0.37 | $ 0.14 | $ 0.60 | $ 0.62 | $ 0.07 | $ (0.97) | $ 1.19 | $ (1.59) | $ 0.59 | $ 1.56 |
Effect of dilutive restricted stock equivalents (in shares) | 0.2 | 0.3 | 0.5 | ||||||||
Effect of dilutive performance shares (in shares) | 0.1 | 0.2 | 0.2 | ||||||||
Diluted average shares outstanding (in shares) | 69.5 | 67.3 | 61.4 | ||||||||
Diluted net earnings per common share - continuing operations (in dollars per share) | $ 0.44 | $ 0.78 | $ 1.52 | ||||||||
Diluted net loss per common share - discontinued operations (in dollars per share) | (2.02) | (0.20) | 0 | ||||||||
Diluted net earnings per common share (in dollars per share) | $ (0.67) | $ 0.37 | $ 0.14 | $ 0.60 | $ 0.62 | $ 0.07 | $ (0.97) | $ 1.16 | $ (1.58) | $ 0.58 | $ 1.52 |
Performance Shares | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Effect of dilutive performance shares (in shares) | 0.4 | 0.4 | 0.9 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 15, 2022 | Nov. 12, 2020 | Jan. 28, 2019 | Nov. 12, 2018 | Jan. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Jul. 01, 2015 |
Class of Stock [Line Items] | |||||||||
Common stock authorized (in shares) | 300,000,000 | ||||||||
Preferred stock, authorized (in shares) | 10,000,000 | ||||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||||||
Common stock issued (in shares) | 72,386,840 | 72,386,840 | |||||||
Shares reserved for issuance (in shares) | 85,000 | ||||||||
Preferred stock issued (in shares) | 2,156,250 | 2,156,250 | 2,156,250 | ||||||
Repurchased shares of common stock (in shares) | 980,000 | 1,036,000 | 1,439,211 | ||||||
Common stock purchased | $ 45 | $ 45 | $ 70 | ||||||
Payments for repurchase of common stock | $ 45.93 | $ 43.46 | $ 48.66 | ||||||
Dividends declared | $ 84 | $ 82.4 | $ 72.1 | ||||||
Dividends paid | 85.4 | 83 | 70 | ||||||
Dividends declared (in dollars per share) | $ 0.30 | ||||||||
Net proceeds from issuance of common stock | 0 | $ 205.3 | 0 | ||||||
Mandatory convertible preferred stock (in dollars per share) | $ 0.01 | $ 0.01 | |||||||
Liquidation preference (in dollars per share) | $ 100 | ||||||||
Annual rate percentage | 7.50% | ||||||||
Dividends to preferred shareholders | 16.2 | $ 12 | |||||||
Dividends paid on MCPS | $ 16.2 | $ 8 | $ 0 | ||||||
Payments for capped call transactions | $ 9 | ||||||||
Common Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares authorized for repurchase | 1,800,000 | 7,500,000 | |||||||
Repurchased shares of common stock (in shares) | 980,000 | 1,036,000 | 1,439,000 | ||||||
Treasury Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock purchased | $ 45 | $ 45 | $ 70 | ||||||
Retained Earnings | |||||||||
Class of Stock [Line Items] | |||||||||
Dividends declared | $ 84 | 82.4 | $ 72.1 | ||||||
Dividends to preferred shareholders | $ 12 | ||||||||
Energizer Holdings, Inc. Equity Incentive Plan | |||||||||
Class of Stock [Line Items] | |||||||||
Reserved for issuance | 1,900,000 | ||||||||
Spectrum Auto Care Acquisition | |||||||||
Class of Stock [Line Items] | |||||||||
Shares issued in acquisition (in shares) | 5,300,000 | ||||||||
Fair value of equity in acquisition | $ 240.5 | ||||||||
Closing stock price (in dollars per share) | $ 45.55 | ||||||||
Minimum | Scenario, Forecast | |||||||||
Class of Stock [Line Items] | |||||||||
Shares of common stock (in shares) | 1,789,200 | ||||||||
Maximum | Scenario, Forecast | |||||||||
Class of Stock [Line Items] | |||||||||
Shares of common stock (in shares) | 2,173,900 | ||||||||
Subsequent Event | |||||||||
Class of Stock [Line Items] | |||||||||
Cash dividend (in dollars per share) | $ 1.875 | ||||||||
Subsequent Event | Common Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares authorized for repurchase | 7,500,000 |
Share-Based Payments (Narrative
Share-Based Payments (Narrative) (Details) $ / shares in Units, $ in Millions | Nov. 17, 2020$ / sharesshares | Nov. 12, 2018$ / sharesshares | Nov. 13, 2017$ / sharesshares | Jul. 08, 2015 | Nov. 30, 2020 | Nov. 30, 2019$ / sharesshares | Nov. 30, 2016$ / sharesshares | Sep. 30, 2020USD ($)shares | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Jan. 27, 2020shares | Jul. 01, 2015shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Income tax benefit | $ | $ 4.7 | $ 5.8 | $ 7.8 | |||||||||
Closing stock price (in dollars per share) | $ / shares | $ 60.25 | $ 44.20 | $ 43.84 | |||||||||
Parent Company | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Closing stock price (in dollars per share) | $ / shares | $ 43.10 | |||||||||||
Subsequent Event | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Closing stock price (in dollars per share) | $ / shares | $ 42.98 | |||||||||||
Restricted Stock Equivalents | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 900,000 | |||||||||||
Unrecognized compensation cost | $ | $ 15.2 | |||||||||||
Weighted-average period of recognition, in years | 1 year 2 months 12 days | |||||||||||
Weighted-average fair value nonvested | $ | $ 36.8 | |||||||||||
Weighted-average fair value vested | $ | 34 | |||||||||||
Restricted Stock Equivalents | Key Executives | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 55,000 | 68,000 | ||||||||||
Restricted Stock Equivalents | Key Executives | Parent Company | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 81,000 | |||||||||||
Restricted Stock Equivalents | Key Executives | Subsequent Event | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 71,000 | |||||||||||
Restricted Stock Equivalents | Board of Directors | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period, in years | 3 years | |||||||||||
Restricted Stock Equivalents | Key Employees | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 73,000 | 100,000 | 92,000 | |||||||||
Vesting period, in years | 4 years | 4 years | 4 years | |||||||||
Restricted Stock Equivalents | Key Employees | Parent Company | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 134,000 | |||||||||||
Vesting period, in years | 4 years | |||||||||||
Restricted Stock Equivalents | Key Employees | Subsequent Event | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 120,000 | |||||||||||
Performance Restricted Stock Equivalents | Key Employees | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Maximum number of shares to be awarded, shares | 380,000 | 476,000 | 612,000 | |||||||||
Shares granted | 190,000 | 238,000 | ||||||||||
Performance period | 3 years | 3 years | 3 years | |||||||||
Performance Restricted Stock Equivalents | Key Employees | Subsequent Event | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Maximum number of shares to be awarded, shares | 544,000 | |||||||||||
Shares granted | 272,000 | |||||||||||
Performance period | 3 years | |||||||||||
Performance Restricted Stock Equivalents | Key Executives and Key Employees [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 306,000 | |||||||||||
Selling, General and Administrative Expenses | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Total compensation cost | $ | $ 24.5 | $ 27.1 | $ 28.2 | |||||||||
Energizer Holdings, Inc. Equity Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Options, share reduction ratio | 1 | |||||||||||
Energizer Holdings, Inc. Equity Incentive Plan | Common Stock | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Maximum number of shares to be awarded, shares | 10,000,000 | |||||||||||
Shares available for future awards, shares | 6,900,000 | |||||||||||
Shares to reduce number of shares available, shares | 2 | |||||||||||
Omnibus Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Maximum number of shares to be awarded, shares | 6,500,000 | |||||||||||
Shares available for future awards, shares | 300,000 |
Share-Based Payments (Summary o
Share-Based Payments (Summary of RSE Activity) (Details) - Restricted Stock Equivalents shares in Millions | 12 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested RSE, Beginning Balance, shares | shares | 1.8 |
Granted, shares | shares | 0.9 |
Vested, shares | shares | (0.7) |
Canceled, shares | shares | (0.1) |
Nonvested RSE, Ending Balance, shares | shares | 1.9 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Nonvested RSE, Beginning Balance, weighted-average grant date estimated fair value | $ / shares | $ 47.70 |
Granted, weighted-average grant date estimated fair value | $ / shares | 43.28 |
Vested, weighted-average grant date estimated fair value | $ / shares | 42.70 |
Canceled, weighted-average grant date estimated fair value | $ / shares | 46.66 |
Nonvested RSE, Ending Balance, weighted-average grant date estimated fair value | $ / shares | $ 47.56 |
Pension Plans (Narrative) (Deta
Pension Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Plan settlement to projected benefit obligation and plan assets | $ 8.6 | $ 36.9 | |
Noncurrent assets | 11.4 | ||
Settlement loss on pension plan terminations | $ 0 | 3.7 | 14.1 |
Other items, net | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement loss on pension plan terminations | 14.1 | ||
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of assets represented by U.S. plan | 80.00% | ||
United States | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation percent | 40.00% | ||
United States | Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation percent | 60.00% | ||
United States | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Noncurrent assets | $ 0 | 0 | |
Settlement loss on pension plan terminations | 0 | 0 | 0.1 |
Company contributions | 2.4 | ||
Net actuarial losses | 7.4 | ||
International Pension Plan Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | 146 | 143.7 | |
International Pension Plan Assets | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Noncurrent assets | 10.4 | 12.1 | |
Settlement loss on pension plan terminations | 0.5 | $ 0.4 | $ 1 |
Company contributions | 2 | ||
Net actuarial losses | $ 1.4 |
Pension Plans (Changes in Proje
Pension Plans (Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan) (Details) - Pension Plan - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
United States | |||
Change in Projected Benefit Obligation | |||
Benefit obligation at beginning of year | $ 531.3 | $ 494.5 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 15.9 | 20.4 | 18.7 |
Actuarial loss/(gain) | 31.3 | 52.2 | |
Benefits paid | (37.4) | (35.8) | |
Plan settlements | 0 | 0 | |
Foreign currency exchange rate changes | 0 | 0 | |
Projected Benefit Obligation at end of year | 541.1 | 531.3 | 494.5 |
Change in Plan Assets | |||
Estimated fair value of plan assets at beginning of year | 463.5 | 456 | |
Actual return on plan assets | 62.8 | 40.8 | |
Company contributions | 2.8 | 2.5 | |
Plan settlements | 0 | 0 | |
Benefits paid | (37.4) | (35.8) | |
Foreign currency exchange rate changes | 0 | 0 | |
Estimated fair value of plan assets at end of year | 491.7 | 463.5 | 456 |
Funded status at end of year | (49.4) | (67.8) | |
International | |||
Change in Projected Benefit Obligation | |||
Benefit obligation at beginning of year | 145.8 | 142.6 | |
Service cost | 0.8 | 0.5 | 0.6 |
Interest cost | 1.5 | 2.9 | 3.9 |
Actuarial loss/(gain) | (2.2) | 22.2 | |
Benefits paid | (4.9) | (5.3) | |
Plan settlements | (2.3) | (10.7) | |
Foreign currency exchange rate changes | 9.7 | (6.4) | |
Projected Benefit Obligation at end of year | 148.4 | 145.8 | 142.6 |
Change in Plan Assets | |||
Estimated fair value of plan assets at beginning of year | 122.8 | 131.6 | |
Actual return on plan assets | 0.2 | 12.6 | |
Company contributions | 1.1 | 3.3 | |
Plan settlements | (2.3) | (13.5) | |
Benefits paid | (4.9) | (5.3) | |
Foreign currency exchange rate changes | 7.6 | (5.9) | |
Estimated fair value of plan assets at end of year | 124.5 | 122.8 | $ 131.6 |
Funded status at end of year | $ (23.9) | $ (23) |
Pension Plans (Schedule of Defi
Pension Plans (Schedule of Defined Benefit Plans Disclosures) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Amounts Recognized in the Consolidated Balance Sheets | ||
Noncurrent assets | $ 11.4 | |
Noncurrent liabilities | $ (89.9) | (109) |
United States | Pension Plan | ||
Amounts Recognized in the Consolidated Balance Sheets | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (2.4) | (2.4) |
Noncurrent liabilities | (47) | (65.4) |
Net amount recognized | (49.4) | (67.8) |
Amounts Recognized in Accumulated Other Comprehensive Loss | ||
Net loss, pre tax | (169.1) | (182.7) |
International | Pension Plan | ||
Amounts Recognized in the Consolidated Balance Sheets | ||
Noncurrent assets | 10.4 | 12.1 |
Current liabilities | (0.6) | (0.6) |
Noncurrent liabilities | (33.7) | (34.5) |
Net amount recognized | (23.9) | (23) |
Amounts Recognized in Accumulated Other Comprehensive Loss | ||
Net loss, pre tax | $ (42.9) | $ (40.9) |
Pension Plans (Schedule of De_2
Pension Plans (Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss)) (Details) - Pension Plan $ in Millions | 12 Months Ended |
Sep. 30, 2020USD ($) | |
United States | |
Changes in plan assets and benefit obligations recognized in other comprehensive (loss)/income | |
Net gain/(loss) arising during the year | $ 7.1 |
Effect of exchange rates | 0 |
Amounts recognized as a component of net periodic benefit cost | |
Amortization or settlement recognition of net gain | 6.5 |
Total gain recognized in other comprehensive loss | 13.6 |
International | |
Changes in plan assets and benefit obligations recognized in other comprehensive (loss)/income | |
Net gain/(loss) arising during the year | (1.1) |
Effect of exchange rates | (2.9) |
Amounts recognized as a component of net periodic benefit cost | |
Amortization or settlement recognition of net gain | 2 |
Total gain recognized in other comprehensive loss | $ (2) |
Pension Plans (Schedule of Expe
Pension Plans (Schedule of Expected Benefit Payments) (Details) - Pension Plan $ in Millions | Sep. 30, 2020USD ($) |
United States | |
Defined Benefit Plan Disclosure [Line Items] | |
2018 | $ 38.2 |
2019 | 38.4 |
2020 | 37.9 |
2021 | 38.1 |
2022 | 36.2 |
2023 to 2027 | 163.4 |
International | |
Defined Benefit Plan Disclosure [Line Items] | |
2018 | 5.6 |
2019 | 5.5 |
2020 | 5.4 |
2021 | 5.5 |
2022 | 5.7 |
2023 to 2027 | $ 29.2 |
Pension Plans (Schedule of Bene
Pension Plans (Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets) (Details) - Pension Plan - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 541.1 | $ 531.3 |
Accumulated benefit obligation | 541.1 | 531.3 |
Estimated fair value of plan assets | 491.7 | 463.5 |
International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 74.6 | 73.5 |
Accumulated benefit obligation | 72.2 | 71.4 |
Estimated fair value of plan assets | $ 40.3 | $ 38.5 |
Pension Plans (Schedule of Net
Pension Plans (Schedule of Net Benefit Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement loss recognized on other pension plans | $ 0 | $ 3.7 | $ 14.1 |
United States | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 15.9 | 20.4 | 18.7 |
Expected return on plan assets | (24.3) | (26.2) | (30.1) |
Recognized net actuarial loss | 6.5 | 4.1 | 4.4 |
Settlement loss recognized on other pension plans | 0 | 0 | 0.1 |
Net periodic (benefit)/expense | (1.9) | (1.7) | (6.9) |
United States | Canadian Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement loss recognized on other pension plans | 0 | 0 | 0 |
United States | Ireland Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement loss recognized on other pension plans | 0 | 0 | 0 |
International | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.8 | 0.5 | 0.6 |
Interest cost | 1.5 | 2.9 | 3.9 |
Expected return on plan assets | (3.6) | (4.9) | (6.3) |
Recognized net actuarial loss | 1.5 | 0.9 | 2 |
Settlement loss recognized on other pension plans | 0.5 | 0.4 | 1 |
Net periodic (benefit)/expense | 0.7 | 3.5 | 15.3 |
International | Canadian Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement loss recognized on other pension plans | 0 | 0 | 14.1 |
International | Ireland Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement loss recognized on other pension plans | $ 0 | $ 3.7 | $ 0 |
Pension Plans (Schedule of Assu
Pension Plans (Schedule of Assumptions Used) (Details) - Pension Plan | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
United States | |||
Plan obligations: | |||
Discount rate | 2.50% | 3.10% | 4.30% |
Compensation increase rate | 0.00% | 0.00% | 0.00% |
Net periodic benefit cost: | |||
Discount rate | 3.10% | 4.30% | 3.70% |
Expected long-term rate of return on plan assets | 5.60% | 5.90% | 6.60% |
Compensation increase rate | 0.00% | 0.00% | 0.00% |
International | |||
Plan obligations: | |||
Discount rate | 1.00% | 1.60% | 2.10% |
Compensation increase rate | 2.10% | 2.10% | 2.10% |
Net periodic benefit cost: | |||
Discount rate | 1.00% | 2.10% | 2.10% |
Expected long-term rate of return on plan assets | 2.80% | 3.80% | 3.80% |
Compensation increase rate | 2.10% | 2.10% | 2.40% |
Pension Plans (Schedule of Allo
Pension Plans (Schedule of Allocation of Plan Assets) (Details) - Pension Plan - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | $ 491.7 | $ 463.5 | $ 456 |
United States | U.S. Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 57.8 | 66 | |
United States | International Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 2.4 | 3.1 | |
United States | U.S. Government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 278.1 | 276.2 | |
United States | Other Government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 18.9 | 1.8 | |
United States | Corporate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | 0 | |
United States | CASH & CASH EQUIVALENTS | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | 0 | |
United States | OTHER | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 7.3 | 6.8 | |
United States | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 60.2 | 69.1 | |
United States | Level 1 | U.S. Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 57.8 | 66 | |
United States | Level 1 | International Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 2.4 | 3.1 | |
United States | Level 1 | U.S. Government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | 0 | |
United States | Level 1 | Other Government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | 0 | |
United States | Level 1 | Corporate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | 0 | |
United States | Level 1 | CASH & CASH EQUIVALENTS | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | 0 | |
United States | Level 1 | OTHER | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | 0 | |
United States | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 304.3 | 284.8 | |
United States | Level 2 | U.S. Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | 0 | |
United States | Level 2 | International Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | 0 | |
United States | Level 2 | U.S. Government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 278.1 | 276.2 | |
United States | Level 2 | Other Government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 18.9 | 1.8 | |
United States | Level 2 | Corporate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | 0 | |
United States | Level 2 | CASH & CASH EQUIVALENTS | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | 0 | |
United States | Level 2 | OTHER | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 7.3 | 6.8 | |
United States | Assets Measured at Net Asset Value | U.S. Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 77.6 | 64.6 | |
United States | Assets Measured at Net Asset Value | International Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 49.6 | 45 | |
United States | Assets Measured at Net Asset Value | Corporate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | 0 | |
United States | Assets Measured at Net Asset Value | OTHER | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | ||
International Pension Plan Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 124.5 | 122.8 | $ 131.6 |
International Pension Plan Assets | U.S. Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | 0 | |
International Pension Plan Assets | International Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 9.8 | 8.7 | |
International Pension Plan Assets | U.S. Government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | 0 | |
International Pension Plan Assets | Other Government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 22.5 | 9 | |
International Pension Plan Assets | Corporate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | 30.2 | |
International Pension Plan Assets | CASH & CASH EQUIVALENTS | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0.4 | 2.5 | |
International Pension Plan Assets | OTHER | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 7.7 | 5.8 | |
International Pension Plan Assets | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | 0 | |
International Pension Plan Assets | Level 1 | U.S. Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | 0 | |
International Pension Plan Assets | Level 1 | International Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | 0 | |
International Pension Plan Assets | Level 1 | U.S. Government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | 0 | |
International Pension Plan Assets | Level 1 | Other Government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | 0 | |
International Pension Plan Assets | Level 1 | Corporate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | 0 | |
International Pension Plan Assets | Level 1 | CASH & CASH EQUIVALENTS | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | 0 | |
International Pension Plan Assets | Level 1 | OTHER | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | 0 | |
International Pension Plan Assets | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 40.4 | 56.2 | |
International Pension Plan Assets | Level 2 | U.S. Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | 0 | |
International Pension Plan Assets | Level 2 | International Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 9.8 | 8.7 | |
International Pension Plan Assets | Level 2 | U.S. Government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | 0 | |
International Pension Plan Assets | Level 2 | Other Government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 22.5 | 9 | |
International Pension Plan Assets | Level 2 | Corporate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | 30.2 | |
International Pension Plan Assets | Level 2 | CASH & CASH EQUIVALENTS | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0.4 | 2.5 | |
International Pension Plan Assets | Level 2 | OTHER | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 7.7 | 5.8 | |
International Pension Plan Assets | Assets Measured at Net Asset Value | U.S. Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 0 | 0 | |
International Pension Plan Assets | Assets Measured at Net Asset Value | International Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 21.1 | 28.9 | |
International Pension Plan Assets | Assets Measured at Net Asset Value | Corporate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | 45.2 | $ 37.7 | |
International Pension Plan Assets | Assets Measured at Net Asset Value | OTHER | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at estimated fair value | $ 17.8 |
Defined Contribution Plan (Narr
Defined Contribution Plan (Narrative) (Details) $ in Millions | Jan. 01, 2014 | Sep. 30, 2020USD ($)employee | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) |
Retirement Benefits [Abstract] | ||||
Percentage of company match | 100.00% | |||
Maximum percentage of eligible compensation | 6.00% | |||
Charged to expense | $ | $ 9.6 | $ 7.8 | $ 5.7 | |
Colleagues added to plan | employee | 900 |
Debt (Schedule of Long-term Deb
Debt (Schedule of Long-term Debt Instruments) (Details) | Sep. 30, 2020EUR (€) | Sep. 30, 2020USD ($) | Jul. 01, 2020USD ($) | Apr. 22, 2020USD ($) | Dec. 27, 2019USD ($) | Sep. 30, 2019USD ($) |
Debt Instrument [Line Items] | ||||||
Total gross long-term debt, including current maturities | $ 4,190,600,000 | $ 3,515,300,000 | ||||
Capital lease obligations | 45,800,000 | 46,900,000 | ||||
Less current portion | (843,000,000) | (1,600,000) | ||||
Less unamortized debt discount and debt issuance fees | (40,700,000) | (52,100,000) | ||||
Total long-term debt | 3,306,900,000 | 3,461,600,000 | ||||
Senior Notes | 5.50% Senior Notes due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Total gross long-term debt, including current maturities | $ 0 | 600,000,000 | ||||
Stated interest rate of debt | 5.50% | 5.50% | 5.50% | |||
Senior Notes | 6.375% Senior Notes due 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Total gross long-term debt, including current maturities | $ 750,000,000 | 500,000,000 | ||||
Stated interest rate of debt | 6.375% | 6.375% | 6.375% | |||
Face amount of debt | $ 250,000,000 | |||||
Senior Notes | 4.625% Senior Notes due 2026 (Euro Notes of €650.0) | ||||||
Debt Instrument [Line Items] | ||||||
Total gross long-term debt, including current maturities | $ 761,900,000 | 708,400,000 | ||||
Stated interest rate of debt | 4.625% | 4.625% | ||||
Face amount of debt | € | € 650,000,000 | |||||
Senior Notes | 7.750% Senior Notes due 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Total gross long-term debt, including current maturities | $ 600,000,000 | 600,000,000 | ||||
Stated interest rate of debt | 7.75% | 7.75% | ||||
Senior Notes | 4.750% Senior Notes due 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Total gross long-term debt, including current maturities | $ 600,000,000 | 0 | ||||
Stated interest rate of debt | 4.75% | 4.75% | 4.75% | |||
Face amount of debt | $ 600,000,000 | |||||
Senior Notes | Senior Notes, 4.375%, Due 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Total gross long-term debt, including current maturities | $ 800,000,000 | 0 | ||||
Stated interest rate of debt | 4.375% | 4.375% | ||||
Face amount of debt | $ 800,000,000 | |||||
Senior secured term loan | Senior Secured Term Loan A Facility due 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Total gross long-term debt, including current maturities | 0 | 77,500,000 | ||||
Senior secured term loan | Senior Secured Term Loan B Facility due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Total gross long-term debt, including current maturities | 313,500,000 | 982,500,000 | ||||
Senior secured term loan | Senior Secured Term Loan A Facility due 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Total gross long-term debt, including current maturities | $ 319,400,000 | $ 0 | ||||
Face amount of debt | $ 365,000,000 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | Oct. 16, 2020USD ($) | Jul. 01, 2020USD ($) | Apr. 22, 2020USD ($) | Dec. 27, 2019USD ($) | Dec. 17, 2018USD ($) | Mar. 16, 2017 | Jun. 01, 2015 | Nov. 17, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2020EUR (€) | Apr. 01, 2019USD ($) | Feb. 28, 2018USD ($) | Mar. 01, 2017 | Aug. 31, 2015USD ($) |
Debt Instrument [Line Items] | |||||||||||||||||
Loss on extinguishment of debt | $ 4,200,000 | $ (94,900,000) | $ 0 | $ 0 | |||||||||||||
Short-term debt interest rate | 6.70% | 3.80% | 6.70% | ||||||||||||||
Premiums paid on extinguishment of debt | $ 18,300,000 | $ 0 | 0 | ||||||||||||||
Deferred financing fees | 26,500,000 | 40,100,000 | $ 22,600,000 | ||||||||||||||
Write-off of debt issuance costs | 20,700,000 | ||||||||||||||||
Notes payable | 3,800,000 | 31,900,000 | |||||||||||||||
Interest Rate Swap | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Variable rate debt hedged | 200,000,000 | 200,000,000 | |||||||||||||||
Interest rate on derivative instrument | 2.47% | ||||||||||||||||
Notional value | 100,000,000 | $ 50,000,000 | $ 400,000,000 | ||||||||||||||
Revolving Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Term of debt | 5 years | ||||||||||||||||
Maximum amount for line of credit | $ 400,000,000 | ||||||||||||||||
Outstanding letters of credit | 25,000,000 | ||||||||||||||||
Remaining available amount on letters of credit | 392,700,000 | ||||||||||||||||
Revolving Facility | International | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Outstanding letters of credit | 3,800,000 | ||||||||||||||||
Notes payable | $ 6,900,000 | ||||||||||||||||
Letter of Credit | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Outstanding letters of credit | $ 7,300,000 | ||||||||||||||||
6.375% Senior Notes due 2026 | Senior Notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Face amount of debt | $ 250,000,000 | ||||||||||||||||
Stated interest rate of debt | 6.375% | 6.375% | 6.375% | ||||||||||||||
Redemption price, percentage | 102.25% | ||||||||||||||||
6.375% Senior Notes due 2026 | Senior Notes | Subsequent Event | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Loss on extinguishment of debt | $ 68,600,000 | ||||||||||||||||
Stated interest rate of debt | 6.375% | ||||||||||||||||
Premiums paid on extinguishment of debt | $ 55,900,000 | ||||||||||||||||
Redemption amount | $ 750,000,000 | ||||||||||||||||
4.625% Senior Notes due 2026 (Euro Notes of €650.0) | Senior Notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Face amount of debt | € | € 650,000,000 | ||||||||||||||||
Stated interest rate of debt | 4.625% | 4.625% | |||||||||||||||
Term Loan A Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Face amount of debt | $ 22,800,000 | ||||||||||||||||
Principal payments as a percentage of the original principal balance | 6.25% | ||||||||||||||||
Term Loan A Facility | Battery Acquisition | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Term of debt | 3 years | ||||||||||||||||
Face amount of debt | $ 200,000,000 | ||||||||||||||||
Term Loan A Facility | Senior secured term loan | Subsequent Event | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Amount paid down | $ 42,800,000 | ||||||||||||||||
Term Loan B Facility | Battery Acquisition | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Term of debt | 7 years | ||||||||||||||||
Face amount of debt | $ 1,000,000,000 | ||||||||||||||||
Term Loan B Facility | Senior secured term loan | Subsequent Event | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Amount paid down | $ 120,000,000 | ||||||||||||||||
5.50% Senior Notes due 2025 | Senior Notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Repayments of long-term debt | $ 488,800,000 | ||||||||||||||||
Loss on extinguishment of debt | $ 22,100,000 | ||||||||||||||||
Stated interest rate of debt | 5.50% | 5.50% | 5.50% | ||||||||||||||
Redemption price, percentage | 102.75% | ||||||||||||||||
Premiums paid on extinguishment of debt | $ 18,300,000 | ||||||||||||||||
Senior Secured Term Loan B Facility due 2022 | Senior secured term loan | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis points floor | 75.00% | ||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | 2.50% | |||||||||||||||
Senior Secured Term Loan B Facility due 2022 | Senior secured term loan | Interest Rate Swap | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Variable rate debt hedged | $ 200,000,000 | ||||||||||||||||
Fixed interest rate | 2.03% | ||||||||||||||||
Senior Secured Term Loan A Facility due 2021 | Senior secured term loan | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Repayments of long-term debt | $ 65,000,000 | ||||||||||||||||
Senior Secured Term Loan A Facility due 2022 | Senior secured term loan | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Face amount of debt | 365,000,000 | ||||||||||||||||
4.750% Senior Notes due 2028 | Senior Notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Face amount of debt | $ 600,000,000 | ||||||||||||||||
Stated interest rate of debt | 4.75% | 4.75% | 4.75% | ||||||||||||||
Senior Secured Term Loan B Facility due 2025 | Senior secured term loan | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Repayments of long-term debt | $ 300,000,000 | ||||||||||||||||
Amount paid down | $ 345,800,000 | ||||||||||||||||
Periodic payment, percentage | 0.25% | ||||||||||||||||
Periodic payment, principal | $ 2,500,000 |
Debt (Long-term Debt Maturities
Debt (Long-term Debt Maturities) (Details) $ in Millions | Sep. 30, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 841.3 |
2022 | 91.3 |
2023 | 141.9 |
2024 | 10 |
2025 | 10 |
Thereafter | 3,050.3 |
Total long-term debt payments due | $ 4,144.8 |
Financial Instruments and Ris_3
Financial Instruments and Risk Management (Narrative) (Details) | 12 Months Ended | ||||||
Sep. 30, 2020USD ($)Contractderivative_instrument | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Apr. 01, 2019USD ($) | Feb. 28, 2018USD ($) | Mar. 01, 2017 | Aug. 31, 2015USD ($) | |
Derivative [Line Items] | |||||||
Unrecognized pretax gain (loss) | $ 7,300,000 | $ 4,700,000 | |||||
Gain/(Loss) Recognized in Income | (2,200,000) | 13,600,000 | $ 15,200,000 | ||||
Interest Rate Swap | |||||||
Derivative [Line Items] | |||||||
Notional value | 100,000,000 | $ 50,000,000 | $ 400,000,000 | ||||
Variable rate debt converted to fixed rate debt | 200,000,000 | 200,000,000 | |||||
Interest rate on derivative instrument | 2.47% | ||||||
Foreign currency contracts | |||||||
Derivative [Line Items] | |||||||
Portion of pre-tax gain included in AOCI expected to be included in earnings | 4,900,000 | ||||||
Line of Credit | Senior secured term loan | |||||||
Derivative [Line Items] | |||||||
Face amount of debt | 632,900,000 | ||||||
Estimate of Fair Value Measurement | |||||||
Derivative [Line Items] | |||||||
Fair market value of fixed rate long-term debt | 2,858,300,000 | 2,474,700,000 | |||||
Reported Value Measurement | |||||||
Derivative [Line Items] | |||||||
Fair market value of fixed rate long-term debt | 2,761,900,000 | 2,408,400,000 | |||||
Not Designated as Hedging Instrument | Foreign currency contracts | |||||||
Derivative [Line Items] | |||||||
Notional value | 69,000,000 | ||||||
Derivatives | $ 200,000 | (4,300,000) | |||||
Open foreign currency contracts | derivative_instrument | 8 | ||||||
Gain/(Loss) Recognized in Income | $ (3,100,000) | 5,300,000 | |||||
Cash Flow Hedging | Foreign currency contracts | |||||||
Derivative [Line Items] | |||||||
Unrealized pre-tax gain (loss) | (4,900,000) | 4,500,000 | |||||
Cash Flow Hedging | Designated as Hedging Instrument | |||||||
Derivative [Line Items] | |||||||
Derivatives | $ 7,800,000 | 1,200,000 | |||||
Cash Flow Hedging | Designated as Hedging Instrument | Zinc contracts | |||||||
Derivative [Line Items] | |||||||
Number of open contracts | Contract | 17 | ||||||
Notional value | $ 41,000,000 | ||||||
Derivatives | (4,400,000) | 1,000,000 | |||||
Cash Flow Hedging | Designated as Hedging Instrument | Foreign currency contracts | |||||||
Derivative [Line Items] | |||||||
Notional value | 170,000,000 | ||||||
Derivatives | $ 4,900,000 | (4,500,000) | |||||
Open foreign currency contracts | derivative_instrument | 64 | ||||||
Cash Flow Hedging | Not Designated as Hedging Instrument | Foreign currency contracts | |||||||
Derivative [Line Items] | |||||||
Derivatives | $ 200,000 | $ (4,300,000) | |||||
Customer Concentration Risk | Wal-Mart Stores, Inc. | Net sales | |||||||
Derivative [Line Items] | |||||||
Percentage of net sales from major customer | 14.10% | 13.80% | 11.50% | ||||
Senior Secured Term Loan B Facility due 2022 | Senior secured term loan | Interest Rate Swap | |||||||
Derivative [Line Items] | |||||||
Variable rate debt converted to fixed rate debt | $ 200,000,000 | ||||||
Fixed interest rate | 2.03% |
Financial Instruments and Ris_4
Financial Instruments and Risk Management (Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)) (Details) - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Estimated Fair Value Asset | $ (7.8) | $ (1.2) |
Pre-Tax Gain/(Loss) Recognized in OCI | (8.9) | (4.2) |
Pre-Tax Gain/(Loss) Reclassified From OCI into Income (Effective Portion) | (2.6) | 8.7 |
Foreign currency contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Estimated Fair Value Asset | (4.9) | 4.5 |
Pre-Tax Gain/(Loss) Recognized in OCI | (6.1) | 8.6 |
Pre-Tax Gain/(Loss) Reclassified From OCI into Income (Effective Portion) | 3.3 | 8.4 |
Interest rate swaps (2017 and 2018) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Estimated Fair Value Asset | (7.3) | (4.7) |
Pre-Tax Gain/(Loss) Recognized in OCI | (6.6) | (11.8) |
Pre-Tax Gain/(Loss) Reclassified From OCI into Income (Effective Portion) | (4.3) | 0.3 |
Zinc contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Estimated Fair Value Asset | 4.4 | (1) |
Pre-Tax Gain/(Loss) Recognized in OCI | 3.8 | (1) |
Pre-Tax Gain/(Loss) Reclassified From OCI into Income (Effective Portion) | $ (1.6) | $ 0 |
Financial Instruments and Ris_5
Financial Instruments and Risk Management (Derivative Instruments, Gain (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(Loss) Recognized in Income | $ (2.2) | $ 13.6 | $ 15.2 |
Divestment Business | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain related to hedge contract | 4.6 | ||
Foreign exchange contract | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain related to hedge contract | 4.6 | ||
Foreign exchange contract | VARTAAG | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain related to hedge contract | 2.2 | ||
Not Designated as Hedging Instrument | Foreign currency contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Estimated Fair Value Asset | (0.2) | 4.3 | |
Gain/(Loss) Recognized in Income | $ (3.1) | $ 5.3 |
Financial Instruments and Ris_6
Financial Instruments and Risk Management (Offsetting Assets and Liabilities) (Details) - Foreign currency contracts - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Derivatives, Fair Value [Line Items] | ||
Gross amounts of recognized assets | $ 0.8 | $ 9.4 |
Gross amounts offset in the Balance Sheet, assets | (0.4) | (0.4) |
Net amounts of assets presented in the Balance Sheet | 0.4 | 9 |
Gross amounts of recognized liabilities | (6) | (0.4) |
Gross amounts offset in the Balance Sheet, liabilities | 0.5 | 0.2 |
Net amounts of liabilities presented in the Balance Sheet | $ (5.5) | $ (0.2) |
Financial Instruments and Ris_7
Financial Instruments and Risk Management (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Compensation | $ (26.8) | $ (28.1) |
Exit lease liability | 0 | (0.1) |
Net Liabilities at estimated fair value | (34.8) | (25.1) |
Interest rate swap | Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (7.3) | (4.7) |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair market value of fixed rate long-term debt | 2,858.3 | 2,474.7 |
Not Designated as Hedging Instrument | Foreign Currency Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (0.2) | 4.3 |
Cash Flow Hedging | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (7.8) | (1.2) |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign Currency Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (4.9) | 4.5 |
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | (7.3) | (4.7) |
Cash Flow Hedging | Designated as Hedging Instrument | Zinc contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | 4.4 | (1) |
Cash Flow Hedging | Not Designated as Hedging Instrument | Foreign Currency Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives | $ (0.2) | $ 4.3 |
Environmental and Regulatory (D
Environmental and Regulatory (Details) $ in Millions | Sep. 30, 2020USD ($) |
Environmental Remediation Obligations [Abstract] | |
Accrued environmental costs | $ 9.3 |
Accrued environmental costs expected to be spent within the next year | $ 2.1 |
Other Commitments and Conting_2
Other Commitments and Contingencies (Narrative) (Details) $ in Millions | Sep. 30, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase obligations | $ 18.5 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss)/Income (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ (298.3) | $ (241.8) | $ (238.8) |
OCI before reclassifications | (39.3) | (38.7) | (2.5) |
Reclassifications to earnings | 8.5 | 0.7 | 19.9 |
Reclassifications to retained earnings | (20.4) | ||
Activity related to discontinued operations | 21.4 | (18.5) | |
Ending balance | (307.7) | (298.3) | (241.8) |
Foreign Currency Translation Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (124) | (113.6) | (93.1) |
OCI before reclassifications | (32.7) | 9 | (20.5) |
Reclassifications to earnings | 0 | 0 | 0 |
Reclassifications to retained earnings | 0 | ||
Activity related to discontinued operations | 19.3 | (19.4) | |
Ending balance | (137.4) | (124) | (113.6) |
Pension Activity | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (173.3) | (136.4) | (139.4) |
OCI before reclassifications | 0.3 | (44.3) | 6.7 |
Reclassifications to earnings | 6.5 | 7.4 | 16.2 |
Reclassifications to retained earnings | (19.9) | ||
Activity related to discontinued operations | 3 | 0 | |
Ending balance | (163.5) | (173.3) | (136.4) |
Zinc contracts | Foreign Currency Contracts | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 0.2 | 0 | 0 |
OCI before reclassifications | 2.9 | (0.7) | 0 |
Reclassifications to earnings | 1.2 | 0 | 0 |
Reclassifications to retained earnings | 0 | ||
Activity related to discontinued operations | (0.9) | 0.9 | |
Ending balance | 3.4 | 0.2 | 0 |
Foreign Currency Contracts | Foreign Currency Contracts | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 3.1 | 3.3 | (4.5) |
OCI before reclassifications | (4.7) | 6.3 | 4.8 |
Reclassifications to earnings | (2.5) | (6.5) | 3 |
Reclassifications to retained earnings | 0 | ||
Activity related to discontinued operations | 0 | 0 | |
Ending balance | (4.1) | 3.1 | 3.3 |
Interest Rate Swap | Foreign Currency Contracts | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (4.3) | 4.9 | (1.8) |
OCI before reclassifications | (5.1) | (9) | 6.5 |
Reclassifications to earnings | 3.3 | (0.2) | 0.7 |
Reclassifications to retained earnings | (0.5) | ||
Activity related to discontinued operations | 0 | 0 | |
Ending balance | $ (6.1) | $ (4.3) | $ 4.9 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive (Loss)/Income (Reclassification out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of products sold | $ (2) | $ 14.3 | $ 6.6 | ||||||||
Interest expense | (195) | (226) | (98.4) | ||||||||
Cost of products sold | 1,662.9 | 1,490.7 | 966.8 | ||||||||
Earnings before income taxes | 67.7 | 73.1 | 175.2 | ||||||||
Income tax (benefit) / provision | (20.9) | (8.4) | (81.7) | ||||||||
Net (loss) / earnings | $ (41.7) | $ 29 | $ 13.7 | $ 45.8 | $ 47 | $ 9.2 | $ (62.3) | $ 70.8 | (93.3) | 51.1 | 93.5 |
Settlement loss on Canadian pension plan termination | 0 | (3.7) | (14.1) | ||||||||
Total reclassifications for the period | 30.6 | 52.7 | 93.5 | ||||||||
Canadian Pension Plan | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Settlement loss on Canadian pension plan termination | 0 | 0 | 14.1 | ||||||||
Ireland Pension Plan | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Settlement loss on Canadian pension plan termination | 0 | 3.7 | 0 | ||||||||
Foreign Currency Contracts | Amount Reclassified from AOCI | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of products sold | (3.3) | (8.4) | 3.8 | ||||||||
Interest expense | 4.3 | (0.3) | 0.9 | ||||||||
Cost of products sold | 1.6 | 0 | 0 | ||||||||
Earnings before income taxes | 2.6 | (8.7) | 4.7 | ||||||||
Income tax (benefit) / provision | (0.6) | 2 | (1) | ||||||||
Net (loss) / earnings | 2 | (6.7) | 3.7 | ||||||||
Pension Activity | Amount Reclassified from AOCI | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Earnings before income taxes | 8.5 | 9.1 | 21.6 | ||||||||
Income tax (benefit) / provision | (2) | (1.7) | (5.4) | ||||||||
Net (loss) / earnings | 6.5 | 7.4 | 16.2 | ||||||||
Actuarial losses | 8 | 5 | 6.4 | ||||||||
Settlement losses on other plans | 0.5 | 0.4 | 1.1 | ||||||||
Foreign Currency Translation Adjustments | Amount Reclassified from AOCI | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications for the period | $ 8.5 | $ 0.7 | $ 19.9 |
Supplemental Financial Statem_3
Supplemental Financial Statement Information (Supplemental Statement of Income Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Financial Statement Related Disclosures [Abstract] | |||
Interest income | $ (0.6) | $ (7.7) | $ (1.4) |
Interest income on restricted cash | 0 | (5.8) | (5.2) |
Foreign currency exchange loss | 8.7 | 5.2 | 8.1 |
Pension expense other than service costs | (1.7) | (2.3) | (6.3) |
Settlement loss on pension plan terminations | 0 | 3.7 | 14.1 |
Acquisition foreign currency gains | 2.2 | (13.6) | (15.2) |
Pre-acquisition insurance proceeds | (4.9) | 0 | 0 |
Settlement of acquired business hedging contracts | 0 | 1.5 | 0 |
Gain on sale of assets (1) | (1) | 0 | 0 |
Transition services agreement income | 0.9 | (1.4) | 0 |
Other | 0.2 | 6.1 | (0.7) |
Other items, net | $ 2 | $ (14.3) | $ (6.6) |
Supplemental Financial Statem_4
Supplemental Financial Statement Information (Supplemental Balance Sheet Information) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Inventories | ||
Raw materials and supplies | $ 85.2 | $ 70.5 |
Work in process | 148.7 | 103.7 |
Finished products | 277.4 | 295.1 |
Total inventories | 511.3 | 469.3 |
Other Current Assets | ||
Miscellaneous receivables | 15.8 | 16.5 |
Due from Related Parties, Current | 30.6 | 7.6 |
Prepaid expenses | 76.5 | 71.3 |
Value added tax collectible from customers | 20.4 | 23.1 |
Other | 14.5 | 58.6 |
Total other current assets | 157.8 | 177.1 |
Property, plant and equipment | ||
Land | 8.9 | 9.6 |
Buildings | 121.9 | 119.9 |
Machinery and equipment | 821.4 | 823 |
Capital leases | 51.4 | 50.4 |
Construction in progress | 39.3 | 25.8 |
Total gross property | 1,042.9 | 1,028.7 |
Accumulated depreciation | (690.8) | (666.7) |
Total property, plant and equipment, net | 352.1 | 362 |
Other Current Liabilities | ||
Accrued advertising, sales promotion and allowances | 12.1 | 11.8 |
Accrued trade promotions | 45.4 | 53.1 |
Accrued salaries, vacations and incentive compensation | 68.1 | 59.2 |
Accrued interest expense | 36.9 | 37.4 |
Accrued Redemption Premium | 55.9 | 0 |
Due to Spectrum | 1.6 | 2.6 |
Accrued acquisition and integration costs | 4.9 | 7.9 |
Restructuring reserve | 9.4 | 9.8 |
Income taxes payable | 30.2 | 23.4 |
Other | 144.2 | 128.4 |
Total other current liabilities | 408.7 | 333.6 |
Other Liabilities | ||
Pensions and other retirement benefits | 89.9 | 109 |
Deferred compensation | 26.8 | 28.1 |
Mandatory transition tax | 16.7 | 16.7 |
Other non-current liabilities | 78.2 | 50.8 |
Total other liabilities | $ 211.6 | $ 204.6 |
Supplemental Financial Statem_5
Supplemental Financial Statement Information (Schedule Of Allowance For Doubtful Accounts) (Details) - Allowance for Doubtful Accounts - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Allowance for Doubtful Accounts | |||
Balance at beginning of year | $ 3.8 | $ 4 | $ 5.8 |
Provision charged to expense, net of reversals | 1.8 | 1.5 | (0.8) |
Write-offs, less recoveries, translation, other | (2.8) | (1.7) | (1) |
Balance at end of year | $ 2.8 | $ 3.8 | $ 4 |
Supplemental Financial Statem_6
Supplemental Financial Statement Information (Summary of Income Tax Valuation Allowance) (Details) - Income Tax Valuation Allowance - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Valuation Allowance | |||
Balance at beginning of year | $ 11.9 | $ 12 | $ 19.3 |
Provision charged to expense, net of reversals | 3.1 | 0.7 | (7.3) |
Reversal of provision charged to expense | (0.2) | (0.4) | 0 |
Translation, other | (1.7) | (0.4) | 0 |
Balance at end of year | $ 13.1 | $ 11.9 | $ 12 |
Supplemental Financial Statem_7
Supplemental Financial Statement Information (Schedule of Cash Flow, Supplemental Disclosures) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Financial Statement Related Disclosures [Abstract] | |||
Interest paid | $ 196 | $ 170.3 | $ 54.3 |
Income taxes paid, net | $ 46.7 | $ 43.3 | $ 46.2 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Jan. 28, 2020 | Jan. 28, 2019 | Nov. 15, 2018 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Related Party Transaction [Line Items] | ||||||||||||||
Selling, general and administrative expense | $ 483,300,000 | $ 515,700,000 | $ 421,700,000 | |||||||||||
Cost of products sold | 1,662,900,000 | 1,490,700,000 | 966,800,000 | |||||||||||
Transition services agreement income | 900,000 | (1,400,000) | 0 | |||||||||||
Other items, net | (2,000,000) | 14,300,000 | 6,600,000 | |||||||||||
Receivable from Spectrum | $ 18,400,000 | 18,400,000 | ||||||||||||
Net (loss) / earnings | (41,700,000) | $ 29,000,000 | $ 13,700,000 | $ 45,800,000 | $ 47,000,000 | $ 9,200,000 | $ (62,300,000) | $ 70,800,000 | (93,300,000) | 51,100,000 | $ 93,500,000 | |||
Transition Services Agreement | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Selling, general and administrative expense | 8,400,000 | 15,300,000 | ||||||||||||
Cost of products sold | 400,000 | 1,000,000 | ||||||||||||
Restructuring reserve | 1,600,000 | 2,600,000 | 1,600,000 | 2,600,000 | ||||||||||
Restructuring receivable | 30,600,000 | $ 7,600,000 | 30,600,000 | 7,600,000 | ||||||||||
Expenses for related party transaction | 17,800,000 | 9,800,000 | ||||||||||||
Discontinued Operations | Transition Services Agreement | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Other items, net | (300,000) | (1,300,000) | ||||||||||||
Net (loss) / earnings | (3,800,000) | (11,800,000) | ||||||||||||
Related party payable | 22,500,000 | 22,500,000 | ||||||||||||
Related party receivable | $ 8,900,000 | 8,900,000 | ||||||||||||
Accounts Payable | Transition Services Agreement | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Expenses for related party transaction | 2,700,000 | 100,000 | ||||||||||||
Spectrum | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Payments for rent | $ 2,300,000 | $ 200,000 | ||||||||||||
Spectrum Auto Care Acquisition | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Newly-issued equity for acquisition | $ 5,300,000 | $ 1,700,000 | $ 312,500,000 | |||||||||||
Percentage of common stock owned | 2.50% | 2.50% |
Segments (Narrative) (Details)
Segments (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2020USD ($)Segment | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Integration Related Costs | $ 20.4 | $ 11.4 | $ 16.9 | $ 19.3 | $ 28.5 | $ 28 | $ 95.4 | $ 36.5 | $ 68 | $ 188.4 | $ 84.6 |
Major geographic reportable segments | Segment | 2 | ||||||||||
Cost of products sold | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Integration Related Costs | $ 32 | 22.5 | 0 | ||||||||
Selling, General and Administrative Expenses | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Integration Related Costs | $ 38.8 | $ 82.3 | $ 62.9 |
Segments (Schedule of Segment R
Segments (Schedule of Segment Reporting Information, by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 763 | $ 658 | $ 587 | $ 736.8 | $ 719 | $ 647.2 | $ 556.4 | $ 571.9 | $ 2,744.8 | $ 2,494.5 | $ 1,797.7 |
Segment profit | 281.8 | 263.2 | 235.6 | 301.3 | 287.8 | 246.3 | 194.2 | 275.5 | 1,081.9 | 1,003.8 | 830.9 |
Research and development expense (3) | (35.4) | (32.8) | (22.4) | ||||||||
Amortization of Intangible Assets | (56.5) | (43.2) | (11.5) | ||||||||
Integration | (20.4) | (11.4) | (16.9) | (19.3) | (28.5) | (28) | (95.4) | (36.5) | (68) | (188.4) | (84.6) |
Settlement loss on pension plan terminations | 0 | 3.7 | 14.1 | ||||||||
Gain on sale of real estate | $ 3.3 | $ (1.7) | $ (3.4) | 0 | $ 1.1 | $ 0.8 | $ 0 | $ (1.5) | 0 | 0 | 4.6 |
Loss on extinguishment of debt | $ 4.2 | (94.9) | 0 | 0 | |||||||
Interest expense | (195) | (226) | (98.4) | ||||||||
Earnings before income taxes | 67.7 | 73.1 | 175.2 | ||||||||
Depreciation and amortization | 111.9 | 92.8 | 45.1 | ||||||||
Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment profit | 654.3 | 631.5 | 475.7 | ||||||||
Depreciation and amortization | 55.4 | 49.6 | 33.6 | ||||||||
Segment Reconciling Items | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
General corporate and other expenses | (103.8) | (111.5) | (97.3) | ||||||||
Global marketing expenses (2) | (28.2) | (18.2) | (19) | ||||||||
Research and development expense (3) | (34.1) | (31.7) | (22.4) | ||||||||
Amortization of Intangible Assets | (56.5) | (43.2) | 11.5 | ||||||||
Integration | (68) | (188.4) | (84.6) | ||||||||
Settlement loss on pension plan terminations | 0 | (3.7) | (14.1) | ||||||||
Gain on sale of real estate | 0 | 0 | 4.6 | ||||||||
Loss on extinguishment of debt | (94.9) | 0 | 0 | ||||||||
Interest expense | (195) | (160.4) | (56.5) | ||||||||
Other financing items, net | (6.1) | (1.3) | 0.3 | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 56.5 | 43.2 | 11.5 | ||||||||
Selling, General and Administrative Expenses | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
General corporate and other expenses | (12.1) | (6.3) | (4.9) | ||||||||
Integration | (38.8) | (82.3) | (62.9) | ||||||||
Advertising and Sales Promotion Expense | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
General corporate and other expenses | (16.1) | (11.9) | (14.1) | ||||||||
Other items, net | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Settlement loss on pension plan terminations | 14.1 | ||||||||||
Gain/expense reclassified to acquisitions and integration costs | (4.1) | (19.3) | (20.4) | ||||||||
Cost of products sold | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
General corporate and other expenses | (2.9) | (2.3) | |||||||||
Integration | (32) | (22.5) | 0 | ||||||||
Interest Expense | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Integration | 0 | (65.6) | (41.9) | ||||||||
Other financing items, net | 65.6 | 41.9 | |||||||||
Americas | Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,971.2 | 1,734.8 | 1,135.6 | ||||||||
Segment profit | 498.5 | 456.6 | 326.1 | ||||||||
Depreciation and amortization | 37.9 | 34.6 | 21.2 | ||||||||
International | Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 773.6 | 759.7 | 662.1 | ||||||||
Segment profit | 155.8 | 174.9 | 149.6 | ||||||||
Depreciation and amortization | $ 17.5 | $ 15 | $ 12.4 |
Segments (Schedule of Assets, C
Segments (Schedule of Assets, Capital Expenditures, Net Sales, and Long-lived Assets from External Customers and Long-Lived Assets, by Geographical Areas) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Assets | $ 5,728.3 | $ 5,449.6 | $ 5,728.3 | $ 5,449.6 | |||||||
Restricted cash | 0 | 0 | |||||||||
Assets held for sale | 0 | 791.7 | 0 | 791.7 | |||||||
Long Lived Tangible Assets | 592.4 | 449.1 | 592.4 | 449.1 | |||||||
Capital Expenditures | 65.3 | 55.1 | $ 24.2 | ||||||||
Net sales | 763 | $ 658 | $ 587 | $ 736.8 | 719 | $ 647.2 | $ 556.4 | $ 571.9 | 2,744.8 | 2,494.5 | 1,797.7 |
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long Lived Tangible Assets | 399.7 | 275.6 | 399.7 | 275.6 | |||||||
Net sales | 1,641.9 | 1,435.8 | 935.8 | ||||||||
International | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 1,102.9 | 1,058.7 | 861.9 | ||||||||
Singapore | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long Lived Tangible Assets | 67.3 | 67.3 | 67.3 | 67.3 | |||||||
United Kingdom | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long Lived Tangible Assets | 62.2 | 46.7 | 62.2 | 46.7 | |||||||
Other International | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long Lived Tangible Assets | 63.2 | 59.5 | 63.2 | 59.5 | |||||||
Segments | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Assets | 1,906.5 | 1,612.9 | 1,906.5 | 1,612.9 | |||||||
Capital Expenditures | 65.3 | 55.1 | 24.2 | ||||||||
Corporate | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Assets | 106.8 | 81.3 | 106.8 | 81.3 | |||||||
Segment Reconciling Items | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Restricted cash | 790 | 0 | 790 | 0 | |||||||
Assets held for sale | 0 | 791.7 | 0 | 791.7 | |||||||
Goodwill and other intangible assets, net | 2,925 | 2,963.7 | 2,925 | 2,963.7 | |||||||
International | Segments | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Assets | 668.5 | 621 | 668.5 | 621 | |||||||
Capital Expenditures | 10.3 | 12.4 | 8 | ||||||||
Net sales | 773.6 | 759.7 | 662.1 | ||||||||
Americas | Segments | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Assets | $ 1,238 | $ 991.9 | 1,238 | 991.9 | |||||||
Capital Expenditures | 55 | 42.7 | 16.2 | ||||||||
Net sales | $ 1,971.2 | $ 1,734.8 | $ 1,135.6 |
Segments (Acquisition and Integ
Segments (Acquisition and Integration Costs and Revenue from External Customers by Products and Services) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue from External Customer [Line Items] | |||||||||||
Acquisition and integration costs (pre-tax) | $ 20.4 | $ 11.4 | $ 16.9 | $ 19.3 | $ 28.5 | $ 28 | $ 95.4 | $ 36.5 | $ 68 | $ 188.4 | $ 84.6 |
Inventory step up (COGS) | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Acquisition and integration costs (pre-tax) | 0 | 36.2 | 0.2 | ||||||||
Cost of products sold | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Acquisition and integration costs (pre-tax) | 32 | 22.5 | 0 | ||||||||
SG&A | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Acquisition and integration costs (pre-tax) | 38.8 | 82.3 | 62.9 | ||||||||
Research and development | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Acquisition and integration costs (pre-tax) | 1.3 | 1.1 | 0 | ||||||||
Interest expense | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Acquisition and integration costs (pre-tax) | 0 | 65.6 | 41.9 | ||||||||
Other items, net | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Gain/expense reclassified to acquisitions and integration costs | $ (4.1) | $ (19.3) | $ (20.4) |
Quarterly Financial Informati_3
Quarterly Financial Information - (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||||||||||
Net sales | $ 763 | $ 658 | $ 587 | $ 736.8 | $ 719 | $ 647.2 | $ 556.4 | $ 571.9 | $ 2,744.8 | $ 2,494.5 | $ 1,797.7 |
Gross profit | 281.8 | 263.2 | 235.6 | 301.3 | 287.8 | 246.3 | 194.2 | 275.5 | 1,081.9 | 1,003.8 | 830.9 |
Net (loss) / earnings | $ (41.7) | $ 29 | $ 13.7 | $ 45.8 | $ 47 | $ 9.2 | $ (62.3) | $ 70.8 | $ (93.3) | $ 51.1 | $ 93.5 |
Earnings Per Share | |||||||||||
Basic (loss)/earnings per common share (in dollars per share) | $ (0.67) | $ 0.37 | $ 0.14 | $ 0.60 | $ 0.62 | $ 0.07 | $ (0.97) | $ 1.19 | $ (1.59) | $ 0.59 | $ 1.56 |
Diluted net earnings/(loss) per share (in dollars per share) | $ (0.67) | $ 0.37 | $ 0.14 | $ 0.60 | $ 0.62 | $ 0.07 | $ (0.97) | $ 1.16 | $ (1.58) | $ 0.58 | $ 1.52 |
Acquisition and integration costs (pre-tax) | $ 20.4 | $ 11.4 | $ 16.9 | $ 19.3 | $ 28.5 | $ 28 | $ 95.4 | $ 36.5 | $ 68 | $ 188.4 | $ 84.6 |
Settlement loss on Ireland pension plan termination (pre-tax) | 3.7 | 0 | 0 | 0 | |||||||
One-time impact of the new U.S. Tax Legislation benefit/(expense) | (3.3) | 1.7 | 3.4 | 0 | $ (1.1) | $ (0.8) | $ 0 | $ 1.5 | 0 | 0 | (4.6) |
Settlement loss on pension plan terminations | 0 | 3.7 | 14.1 | ||||||||
One-time impact of the CARES Act benefit/(expense) | $ 90.7 | $ 0 | $ 0 | $ 4.2 | |||||||
Ireland Pension Plan | |||||||||||
Earnings Per Share | |||||||||||
Settlement loss on pension plan terminations | 0 | (3.7) | 0 | ||||||||
Canadian Pension Plan | |||||||||||
Earnings Per Share | |||||||||||
Settlement loss on pension plan terminations | $ 0 | $ 0 | $ (14.1) |