Cover Page Cover Page
Cover Page Cover Page - shares | 3 Months Ended | |
Dec. 31, 2023 | Feb. 02, 2024 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-36837 | |
Entity Registrant Name | ENERGIZER HOLDINGS, INC. | |
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 | |
City Area Code | (314) | |
Local Phone Number | 985-2000 | |
Entity Address, Postal Zip Code | 63141 | |
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Central Index Key | 0001632790 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Trading Symbol | ENR | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common stock outstanding, shares | 71,782,335 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (Condensed) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Net sales | $ 716.6 | $ 765.1 |
Cost of products sold | 449.6 | 466.8 |
Gross profit | 267 | 298.3 |
Selling, general and administrative expense | 128.1 | 120.4 |
Advertising and sales promotion expense | 47 | 53.4 |
Research and development expense | 7.8 | 7.6 |
Amortization of intangible assets | 14.5 | 16 |
Interest expense | 40.7 | 42.9 |
Loss/(gain) on extinguishment of debt | 0.5 | (2.9) |
Other items, net | 19 | (1.4) |
(Loss)/Earnings before income taxes | 9.4 | 62.3 |
Income tax (benefit)/provision | 7.5 | 13.3 |
Net earnings | $ 1.9 | $ 49 |
Earnings Per Share | ||
Basic net (loss)/earnings per common share- continuing operations (in dollars per share) | $ 0.03 | $ 0.69 |
Diluted net (loss)/earnings per common share- continuing operations (in dollars per share) | $ 0.03 | $ 0.68 |
Weighted average number of shares outstanding, basic (in shares) | 71.7 | 71.4 |
Weighted average number of shares outstanding, diluted (in shares) | 72.6 | 72.2 |
Statement of Comprehensive Income | ||
Net (loss)/earnings | $ 1.9 | $ 49 |
Other comprehensive income/(loss), net of tax (benefit)/expense | ||
Foreign currency translation adjustments | (1.1) | (18.6) |
Pension activity, net of tax of $(2.9) in 2022, $8.7 in 2021, and $3.5 in 2020 | (0.9) | 2.4 |
Deferred gain/(loss) on hedging activity, net of tax of $19.1 in 2022, $6.4 in 2021, and $(1.5) in 2020 | (19.6) | (13.4) |
Total comprehensive (loss)/income | $ (19.7) | $ 19.4 |
CONSOLIDATED BALANCE SHEETS (Co
CONSOLIDATED BALANCE SHEETS (Condensed) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 |
Current assets | ||
Cash and cash equivalents | $ 241.7 | $ 223.3 |
Trade receivables, less allowance for doubtful accounts of $4.7 and $4.6, respectively | 376.4 | 511.6 |
Inventories | 640.6 | 649.7 |
Other current assets | 212.3 | 172 |
Total current assets | 1,471 | 1,556.6 |
Property, plant and equipment, net | 384.3 | 363.7 |
Operating lease assets | 96.5 | 98.4 |
Goodwill | 1,023.7 | 1,016.2 |
Other intangible assets, net | 1,224.4 | 1,237.7 |
Deferred tax assets | 92.2 | 88.4 |
Other assets | 131.8 | 148.6 |
Total assets | 4,423.9 | 4,509.6 |
Current liabilities | ||
Current maturities of long-term debt | 12 | 12 |
Current portion of capital leases | 0.9 | 0.3 |
Notes payable | 2.2 | 8.2 |
Accounts payable | 374.6 | 370.8 |
Current operating lease liabilities | 17.3 | 17.3 |
Other current liabilities | 317.4 | 325.6 |
Total current liabilities | 724.4 | 734.2 |
Long-term debt | 3,303.3 | 3,332.1 |
Operating lease liabilities | 81.9 | 84.7 |
Deferred tax liabilities | 10.5 | 12.4 |
Other liabilities | 133.2 | 135.5 |
Total liabilities | 4,253.3 | 4,298.9 |
Shareholders' equity | ||
Common stock | 0.8 | 0.8 |
Additional paid-in capital | 718.5 | 750.5 |
Retained losses | (164.3) | (164.8) |
Treasury stock | (225.1) | (238.1) |
Accumulated other comprehensive loss | (159.3) | (137.7) |
Total shareholders' equity | 170.6 | 210.7 |
Total liabilities and shareholders' equity | $ 4,423.9 | $ 4,509.6 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Condensed) Parenthetical - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 4.7 | $ 4.6 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Condensed) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash Flow from Operating Activities | ||
Net earnings | $ 1.9 | $ 49 |
Adjustments to reconcile net earnings to net cash flow from operations: | ||
Non-cash integration and restructuring charges | 2.4 | 0 |
Depreciation and amortization | 30 | 32.1 |
Deferred income taxes | 1.1 | 0.9 |
Share-based compensation expense | 6.3 | 4.6 |
Loss/(gain) on extinguishment of debt | 0.5 | (2.9) |
Non-cash items included in income, net | 6.3 | 4.4 |
Exchange loss/(gain) included in income | 23.7 | (1) |
Other, net | 2.3 | 0.8 |
Changes in current assets and liabilities used in operations | 103.6 | 73.1 |
Net cash from operating activities from continuing operations | 178.1 | 161 |
Cash Flow from Investing Activities | ||
Capital expenditures | (25.5) | (9.5) |
Proceeds from sale of assets | 0 | 0.7 |
Acquisitions, net of cash acquired | (11.6) | 0 |
Net cash used by investing activities | (37.1) | (8.8) |
Cash Flow from Financing Activities | ||
Payments on debt with maturities greater than 90 days | (78.2) | (49.8) |
Net decrease in debt with original maturities of 90 days or less | (5.2) | (5.9) |
Dividends paid on common stock | (22.7) | (21.8) |
Taxes paid for withheld share-based payments | (4.7) | (1.9) |
Net cash used by financing activities | (110.8) | (79.4) |
Effect of exchange rate changes on cash | (11.8) | 2.2 |
Net (decrease)/increase in cash, cash equivalents, and restricted cash | 18.4 | 75 |
Cash, cash equivalents, and restricted cash, beginning of period | 223.3 | 205.3 |
Cash, cash equivalents, and restricted cash, end of period | $ 241.7 | $ 280.3 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY/(DEFICIT) - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained (Losses)/Earnings | Accumulated Other Comprehensive (Loss)/Income | Treasury Stock |
Beginning balance (in shares) at Sep. 30, 2022 | 71,270 | |||||
Beginning balance at Sep. 30, 2022 | $ 130.6 | $ 0.8 | $ 828.7 | $ (304.7) | $ (145.3) | $ (248.9) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 49 | 49 | ||||
Share-based payments | 4.6 | 4.6 | ||||
Activity under stock plans (in shares) | 142 | |||||
Activity under stock plans | (1.9) | (8.5) | (0.3) | 6.9 | ||
Dividends to common shareholders | (21.9) | (21.9) | ||||
Other comprehensive loss | (29.6) | (29.6) | ||||
Ending balance (in shares) at Dec. 31, 2022 | 71,412 | |||||
Ending balance at Dec. 31, 2022 | 130.8 | $ 0.8 | 802.9 | (256) | (174.9) | (242) |
Beginning balance (in shares) at Sep. 30, 2023 | 71,500 | |||||
Beginning balance at Sep. 30, 2023 | 210.7 | $ 0.8 | 750.5 | (164.8) | (137.7) | (238.1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 1.9 | 1.9 | ||||
Share-based payments | 6.4 | 6.4 | ||||
Activity under stock plans (in shares) | 277 | |||||
Activity under stock plans | (4.7) | (16.3) | (1.4) | 13 | ||
Dividends to common shareholders | (22.1) | (22.1) | ||||
Other comprehensive loss | (21.6) | (21.6) | ||||
Ending balance (in shares) at Dec. 31, 2023 | 71,777 | |||||
Ending balance at Dec. 31, 2023 | $ 170.6 | $ 0.8 | $ 718.5 | $ (164.3) | $ (159.3) | $ (225.1) |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY/(DEFICIT) (Parenthetical) - $ / shares | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends per share (in dollars per share) | $ 0.30 | $ 0.30 |
CONSOLIDATED STATEMENTS OF EA_2
CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (Condensed) - Parenthetical - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Financial Position [Abstract] | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ 0.2 | $ 1.2 |
Deferred (loss)/gain on hedging activity, tax | $ (6.5) | $ (4.7) |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Dec. 31, 2023 | |
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 primary batteries, portable lights, and auto care appearance, performance, refrigerants and fragrance products. Batteries and lights are sold under the Energizer®, Eveready®, Rayovac® and Varta® brand names. Energizer offers batteries using lithium, alkaline, carbon zinc, nickel metal hydride, zinc air and silver oxide constructions. Automotive appearance, performance, refrigerants and fragrance products are sold under the Armor All®, STP®, A/C PRO® Refresh Your Car!®, California Scents®, Driven®, Bahama & Co.®, LEXOL® and Eagle One® brands. Basis of Presentation - The accompanying Consolidated (Condensed) 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. The accompanying Consolidated (Condensed) Financial Statements have been prepared in accordance with Article 10 of Regulation S-X and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The year-ended September 30, 2023 Consolidated (Condensed) Balance Sheet was derived from the audited financial statements included in Energizer's Report on Form 10-K, but does not include all disclosures required by U.S. GAAP. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair statement of our operations, financial position and cash flows have been included. Certain reclassifications have been made to the prior year financial statements to conform to the current presentation. Operating results for any quarter are not necessarily indicative of the results for any other quarter or for the full year. These statements should be read in conjunction with the financial statements and notes thereto for Energizer for the year ended September 30, 2023 included in the Annual Report on Form 10-K dated November 14, 2023. Recently Adopted Accounting Pronouncements – In September 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2022-04, Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. The new guidance requires qualitative and quantitative disclosure sufficient to enable users of the financial statements to understand the nature, activity during the period, changes from period to period and potential magnitude of such programs. The amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal periods, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. The Company adopted the required guidance in the first quarter of fiscal 2024. The Company has a voluntary Supplier Financing Program (the program) in collaboration with certain financial institutions that offers participating suppliers access to a third-party service which allows them to view scheduled payments online and enables them the ability to request payment of their invoices from the financial institutions earlier than the negotiated terms with the Company. The Company is not a party to the negotiations or agreements reached between participating suppliers and third-party financial institutions. The Company's obligations, including the amounts due and payment terms, remain unaffected by our suppliers’ decision to participate in the program. The Company does not provide any form of guarantee or assume any liability in connection with the agreements between our suppliers and the third-party financial institutions involved in the program. As of December 31, 2023 and September 30, 2023, the Company had $55.4 and $60.9, respectively, of outstanding supplier obligations confirmed as valid under the program which are included within Accounts payable on the Consolidated (Condensed) Balance Sheets. Recently Issued Accounting Pronouncements - In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures. This guidance requires disclosure of incremental segment information on an annual and interim basis. This amendment is effective for our fiscal year ending September 30, 2025 and our interim periods within the fiscal year ending September 30, 2026. We are currently assessing the impact of this guidance on our disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes: Improvements to Income Tax Disclosures. This guidance requires consistent categories and greater disaggregation of information in the rate reconciliation and disclosures of income taxes paid by jurisdiction. This amendment is effective for our fiscal year ending September 30, 2026. We are currently assessing the impact of this guidance on our disclosures. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition 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 is a leading designer and marketer of automotive fragrance, appearance, performance and air conditioning recharge products. The Company distributes its 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. The Company sells to its customers through a combination of a direct sales force and exclusive and non-exclusive third-party distributors and wholesalers. The Company’s revenue is primarily generated from the sale of finished product to customers. Sales predominantly contain a single delivery element, or performance obligation, and revenue is recognized at a single point in time when title, ownership and risk of loss pass to the customer. This typically occurs when finished goods are delivered to the customer or when finished goods are picked up by the carrier at origin or the customer, depending on contract terms. North America sales are generally through large retailers with nationally or regionally recognized brands. Our International sales, which includes Latin America, 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 quarters ended December 31, 2023 and 2022: For the Quarters Ended December 31, Net Sales by products 2023 2022 Batteries $ 591.4 $ 639.5 Auto Care 98.8 93.5 Lights 26.4 32.1 Total Net Sales $ 716.6 $ 765.1 For the Quarters Ended December 31, 2023 2022 Net Sales by markets North America $ 416.3 $ 456.3 Modern Markets 155.0 153.6 Developing Markets 106.0 108.5 Distributors Markets 39.3 46.7 Total Net Sales $ 716.6 $ 765.1 |
Acquisition
Acquisition | 3 Months Ended |
Dec. 31, 2022 | |
Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Belgium Acquisition - On October 27, 2023, the Company acquired certain battery manufacturing assets in Belgium from Advanced Power Solutions Belgium NV (APS) for a contractual purchase price of EUR3.5 (Belgium Acquisition). The Company also acquired certain raw materials from APS, procured by APS on the Company's behalf to facilitate the transition, for a total acquisition purchase price of $11.6 (including value added taxes). The Company assumed a building lease as part of the acquisition and acquired these assets to provide a battery manufacturing location in Europe. The Company is still finalizing the valuation of these assets and related income tax considerations, but initially no goodwill has been recognized with this acquisition. The Company recorded $2.6 of acquisition and integration costs associated with the Belgium Acquisition during the three months ended December 31, 2023. The costs included $2.9 of operating costs recorded in Costs of good sold as the Company was awaiting the receipt of the raw materials procured on the Company's behalf by APS. These costs were offset by $1.0 of income recorded in Other items, net from producing inventory for APS under a transaction services agreement (TSA) entered into at the closing of the transaction. No further income is expected from this TSA. The Company also recorded $0.7 of legal and diligence fees associated with the closing of this acquisition recorded in Selling, general and administrative expenses. |
Restructuring
Restructuring | 3 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring Project Momentum Restructuring - In November 2022, the Board of Directors approved a profit recovery program, Project Momentum, which includes an enterprise-wide restructuring focused on recovering operating margins, optimizing our manufacturing, distribution and global supply chain networks, and enhancing our organizational efficiency throughout the Company. In July 2023, the Company's Board of Directors approved an expansion to the Project Momentum profit recovery program and delegated authority to the Company's management to determine the final actions with respect to the plan. The expansion of this program included an additional year, which will allow for additional optimization of our battery manufacturing, distribution and global supply chain networks, further review of our global real estate footprint and the implementation of IT systems that will allow us to streamline our organization and fully execute the program. Following the Belgium Acquisition in the first quarter of fiscal 2024, the Company is expanding the Project Momentum program and increasing the savings and cost expectations, partially due to the impact the expanded manufacturing capacity will have on the Company's battery network. It is estimated that the Company will incur total pre-tax exit-related cash operating costs associated with the program of approximately $140 to $150, non-cash costs of approximately $20, and capital expenditures of $75 to $85 through the end of fiscal 2025. The pre-tax expense for charges related to the restructuring for the quarters ended December 31, 2023 and 2022 are noted in the table below, and were reflected in the Consolidated (Condensed) Statement of Earnings and Comprehensive Income: For the Quarters Ended December 31, 2023 2022 Project Momentum Restructuring Program Costs of products sold Severance and related benefit costs $ 0.5 $ — Accelerated depreciation & asset write-offs 1.3 — Other restructuring related costs (1) 11.0 0.3 Selling, general and administrate expense Severance and related benefit costs 1.8 0.5 Accelerated depreciation & asset write-offs 0.5 — Other restructuring related costs (2) 3.4 5.8 Momentum Restructuring Cost Total $ 18.5 $ 6.6 IT enablement (3) 3.9 — Total restructuring and related costs $ 22.4 $ 6.6 (1) Includes charges primarily related to consulting, relocation, decommissioning, and other facility exit costs. (2) Primarily includes consulting, real estate rationalization costs, and legal fees for the restructuring program. (3) Relates to operating expenses for new IT systems, primarily the organizational design and change management costs, which are enabling the Company to complete restructuring initiatives. Costs are included in SG&A in the Consolidated (Condensed) Statement of Earnings and Comprehensive Income. Although the Company's restructuring costs are recorded outside of segment profit, if allocated to our reportable segments, the pre-tax restructuring and related costs for the quarter ended December 31, 2023 would be incurred within the Battery & Lights segment in the amounts of $20.8 and the Auto Care segment in the amount of $1.6. For the quarter ended December 31, 2022, the pre-tax restructuring and related costs would have been incurred within the Battery & Lights segment in the amount of $5.8 and the Auto Care segment in the amount of $0.8. The following table summarizes the restructuring and related costs reserve activity related to the Project Momentum restructuring program for the quarters ended December 31, 2022 and 2023: Utilized September 30, 2022 (1) Charge to Income Cash Non-Cash December 31, 2022 (1) Severance & termination related costs $ — $ 0.5 $ 0.2 $ — $ 0.3 Other restructuring related costs 0.9 6.1 3.8 — 3.2 Total restructuring and related costs $ 0.9 $ 6.6 $ 4.0 $ — $ 3.5 Utilized September 30, 2023 (1) Charge to Income Cash Non-Cash December 31, 2023 (1) Severance & termination related costs $ 15.4 $ 2.3 $ 3.9 $ — $ 13.8 Accelerated depreciation & asset write-offs — 1.8 — 1.8 — Other restructuring related costs 3.3 14.4 15.4 0.1 2.2 IT enablement 0.9 3.9 3.8 0.1 0.9 Total restructuring and related costs $ 19.6 $ 22.4 $ 23.1 $ 2.0 $ 16.9 (1) Th e restructuring and related costs reserve is recorded on the Consolidated (Condensed) Balance Sheet in Other current liabilities and Other long term liabilities. Refer to Note 13, Supplemental Financial Statement Information for additional details. |
Segments
Segments | 3 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segments | Segments Operations for Energizer are managed via two product segments: Batteries & Lights and Auto Care. Segment performance is evaluated based on segment operating profit, exclusive of general corporate expenses (including share-based compensation costs), amortization of intangibles, acquisition and integration activities, restructuring and related costs, and other items determined to be corporate in nature. Financial items, such as interest income and expense and the (loss)/gain on extinguishment of debt are managed on a global basis at the corporate level. The exclusion of restructuring costs and acquisition and integration 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 product segments, varying by country and region of the world. Shared functions include the sales and marketing functions, as well as human resources, 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 may not represent the costs of such services if performed on a standalone basis. Segment sales and profitability for the quarters ended December 31, 2023 and 2022 are presented below: For the Quarters Ended December 31, 2023 2022 Net Sales Batteries & Lights $ 617.8 $ 671.6 Auto Care 98.8 93.5 Total Net Sales $ 716.6 $ 765.1 Segment Profit Batteries & Lights $ 132.4 $ 138.3 Auto Care 6.9 10.6 Total segment profit $ 139.3 $ 148.9 General corporate and other expenses (1) (29.2) (25.4) Amortization of intangible assets (14.5) (16.0) Project Momentum restructuring and related costs (2) (22.4) (6.6) Acquisition and integration costs (3) (2.6) — Interest expense (40.7) (42.9) (Loss)/gain on extinguishment of debt (0.5) 2.9 December 2023 Argentina Economic Reform (4) (21.0) — Other items - Adjusted 1.0 1.4 Total earnings before income taxes $ 9.4 $ 62.3 Depreciation and amortization Batteries & Lights $ 13.0 $ 13.4 Auto Care 2.5 2.7 Total segment depreciation and amortization $ 15.5 $ 16.1 Amortization of intangible assets 14.5 16.0 Total depreciation and amortization $ 30.0 $ 32.1 (1) Included in SG&A in the Consolidated (Condensed) Statement of Earnings and Comprehensive Income. (2) Restructuring and related costs were included in the following lines in the Consolidated (Condensed) Statement of Earnings and Comprehensive Income: For the Quarters Ended December 31, Restructuring and related costs 2023 2022 Cost of products sold $ 12.8 $ 0.3 SG&A - Restructuring costs 5.7 6.3 SG&A - IT Enablement 3.9 — Total Restructuring and related costs $ 22.4 $ 6.6 (3) Acquisition and integration costs included $2.9 recorded in Cost of products sold, $0.7 recorded in SG&A and income of $1.0 recorded in Other items, net. Refer to Note 3, Acquisitions, for further information. (4) During December 2023, a new president was inaugurated in Argentina bringing significant economic reform to the country including devaluing the Argentine Peso by 50% in the month of December (December 2023 Argentina Reform). In addition, new regulations were implemented reducing restrictions around foreign currency purchases. As a result of this reform and devaluation, the Company recorded $21.0 of exchange losses in Other items, net on the Consolidated (Condensed) Statement of Earnings. Corporate assets shown in the following table include cash, all financial instruments, pension assets, amounts indemnified by others per the purchase agreements and tax asset balances that are managed outside of operating segments. Total Assets December 31, 2023 September 30, 2023 Batteries & Lights $ 1,300.2 $ 1,362.0 Auto Care 380.2 423.5 Total segment assets $ 1,680.4 $ 1,785.5 Corporate 495.4 470.2 Goodwill and other intangible assets 2,248.1 2,253.9 Total assets $ 4,423.9 $ 4,509.6 |
Earnings per share
Earnings per share | 3 Months Ended |
Dec. 31, 2023 | |
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 unit (RSU) awards, performance share awards and deferred compensation equity plans. The following table sets forth the computation of basic and diluted earnings per share for the quarters ended December 31, 2023 and 2022: (in millions, except per share data) For the Quarters Ended December 31, Basic net earnings per share 2023 2022 Net earnings $ 1.9 $ 49.0 Weighted average common shares outstanding - Basic 71.7 71.4 Basic net earnings per common share $ 0.03 $ 0.69 Diluted net earnings per share Weighted average common shares outstanding - Basic 71.7 71.4 Dilutive effect of RSU 0.4 0.2 Dilutive effect of performance shares 0.5 0.5 Dilutive effect of stock based deferred compensation plan — 0.1 Weighted average common shares outstanding - Diluted 72.6 72.2 Diluted net earnings per common share $ 0.03 $ 0.68 For the quarters ended December 31, 2023 and 2022, there were 0.5 million and 0.2 million antidilutive RSU shares, respectively, not included in the diluted net earnings per share calculation. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate for the three months ended December 31, 2023 was 79.8% as compared to 21.3% for the prior year comparative period. The current year rate is higher than prior year as the exchange rate loss of $21.0 |
Goodwill and intangible assets
Goodwill and intangible assets | 3 Months Ended |
Dec. 31, 2023 | |
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 evaluated annually for impairment as part of our annual business planning cycle in the fourth fiscal quarter, or when indicators of a potential impairment are present. The following table sets forth goodwill by segment as of October 1, 2023 and December 31, 2023: Batteries & Lights Auto Care Total Balance at October 1, 2023 $ 882.0 $ 134.2 $ 1,016.2 Cumulative translation adjustment 7.5 — 7.5 Balance at December 31, 2023 $ 889.5 $ 134.2 $ 1,023.7 Energizer had indefinite-lived intangible assets of $763.7 at December 31, 2023 and $762.8 at September 30, 2023. The difference between the periods is driven by currency adjustments. Total intangible assets at December 31, 2023 are as follows: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trademarks and trade names $ 142.7 $ (31.5) $ 111.2 Customer relationships 394.5 (146.6) 247.9 Patents 34.2 (19.5) 14.7 Proprietary technology 172.5 (104.5) 68.0 Proprietary formulas 29.2 (10.3) 18.9 Total Amortizable intangible assets 773.1 (312.4) 460.7 Trademarks and trade names - indefinite lived 763.7 — 763.7 Total Other intangible assets, net $ 1,536.8 $ (312.4) $ 1,224.4 Total intangible assets at September 30, 2023 were as follows: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trademarks and trade names $ 142.4 $ (29.4) $ 113.0 Customer relationships 394.2 (139.7) 254.5 Patents 33.9 (18.2) 15.7 Proprietary technology 172.5 (100.0) 72.5 Proprietary formulas 29.2 (10.0) 19.2 Total Amortizable intangible assets 772.2 (297.3) 474.9 Trademarks and trade names - indefinite lived 762.8 — 762.8 Total Other intangible assets, net $ 1,535.0 $ (297.3) $ 1,237.7 |
Debt
Debt | 3 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The detail of long-term debt was as follows: December 31, 2023 September 30, 2023 Senior Secured Term Loan Facility due 2027 $ 904.0 $ 982.0 6.500% Senior Notes due 2027 300.0 300.0 4.750% Senior Notes due 2028 583.7 583.7 4.375% Senior Notes due 2029 791.3 791.3 3.50% Senior Notes due 2029 (Euro Notes of €650.0) (1) 717.4 687.2 Finance lease obligations (2) 49.7 32.0 Total long-term debt, including current maturities $ 3,346.1 $ 3,376.2 Less current portion (12.9) (12.3) Less unamortized debt premium and debt issuance fees (29.9) (31.8) Total long-term debt $ 3,303.3 $ 3,332.1 (1) Changes in the USD balance of the Euro denominated 3.50% Senior Notes due in 2029 is due to movements in the currency rate year-over-year. (2) The increase in finance lease obligations is due to the acquisition of a finance lease associated with the Belgium Acquisition. Credit Agreement - During the first quarter of fiscal 2024, the Company pre-paid $75.0 of the Senior Secured Term Loan due in 2027. During the first quarter of fiscal 2023, the Company pre-paid $25.0 of the Senior Term Loan. The Company wrote off $0.5 and $0.2 of deferred financing fees as a result of these early payments in fiscal 2024 and fiscal 2023, respectively. Subsequent to December 31, 2023, the Company pre-paid an additional $55.0 of the Term Loan. Borrowings under the Term Loan require quarterly principal payments at a rate of 0.25% of the original principal balance, or $3.0. Borrowings under the Revolving Facility bear interest at a rate per annum equal to, at the option of the Company, Secured Overnight Finance Rate (SOFR) or the Base Rate (as defined) plus the applicable margin. The Term Loan bears interest at a rate per annum equal to SOFR plus the applicable margin. The Credit Agreement also contains customary affirmative and restrictive covenants. The Company has an interest rate swap that fixes the variable benchmark component (SOFR) at an interest rate of 1.042% on variable rate debt of $700.0. The notional value of the swap will stay at this value through December 22, 2024 and then will decrease by $100.0 on December 22, 2024 and by $100.0 each year thereafter until its termination date on December 22, 2027. Refer to Note 11, Financial Instruments and Risk Management, for additional information on the Company's interest rate swap transactions. As of December 31, 2023 and 2022, the Company had no outstanding borrowings under the Revolving Facility and $7.6 of outstanding letters of credit. Taking into account outstanding letters of credit, $492.4 remained available under the Revolving Facility as of December 31, 2023. At both December 31, 2023 and September 30, 2023, the Company's weighted average interest rate on short-term borrowings was 7.7%. Senior Notes - During the first quarter of fiscal 2023, the Company retired $16.3 of the 4.750% Senior Notes due in 2028 and $8.7 of the 4.375% Senior Notes due in 2029 for a cash cost of $21.6. The Company wrote off $0.3 of deferred financing fees as a result of these transactions. The prepayment of the Term Loan during the first quarter of fiscal 2024 resulted in a net Loss on extinguishment of debt for the quarter ended December 31, 2023 of $0.5 recorded on the Consolidated (Condensed) Statement of Earnings and Comprehensive Income. The transactions associated with both the retirement of Senior Notes and prepayment of the Term Loan during the first quarter of fiscal 2023 resulted in a net Gain on extinguishment of debt of $2.9 for the quarter ended December 31, 2022. Notes payable - The Company had $2.2 in Notes payable at December 31, 2023 and $8.2 at September 30, 2023. The balances are comprised of other borrowings, including those from foreign affiliates. At December 31, 2023 and September 30, 2023, the Company had no outstanding borrowings on the Revolving Facility. 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 debt agreements, the lenders may have the right to accelerate the maturity of the debt. Acceleration under one of these debt agreements would trigger cross defaults to other borrowings. As of December 31, 2023, the Company was 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 December 31, 2023 are as follows: Long-term debt One year $ 12.0 Two year 12.0 Three year 12.0 Four year 1,168.0 Five year 583.7 Thereafter 1,508.7 Total long-term debt payments due $ 3,296.4 |
Pension Plans
Pension Plans | 3 Months Ended |
Dec. 31, 2023 | |
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. The Company’s net periodic pension cost for these plans are as follows: For the Quarters Ended December 31, U.S. International 2023 2022 2023 2022 Service cost $ — $ — $ 0.1 $ 0.1 Interest cost 3.6 5.1 0.8 0.8 Expected return on plan assets (3.3) (5.2) (0.8) (0.7) Amortization of unrecognized net losses 0.5 0.6 0.2 0.1 Net periodic cost $ 0.8 $ 0.5 $ 0.3 $ 0.3 The service cost component of the net periodic cost above is recorded in Selling, general and administrative expense on the Consolidated (Condensed) Statement of Earnings and Comprehensive Income, while the remaining components are recorded to Other items, net. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 3 Months Ended |
Dec. 31, 2023 | |
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. In the ordinary course of business, the Company may enter 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 December 31, 2023 and September 30, 2023, 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 of 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 (Condensed) Statement of Earnings and Comprehensive Income. The primary currency to which Energizer’s foreign subsidiaries are exposed is the U.S. dollar. Interest Rate Risk —The Company has interest rate risk with respect to interest expense on variable rate debt. At December 31, 2023, the Company had variable rate debt outstanding of $904.0 under the Term Loan. The Company has an interest rate swap that fixes the variable benchmark component (SOFR) at an interest rate of 1.042% on variable rate debt of $700.0. The notional value of the swap will stay at this value through December 22, 2024 and then will decrease by $100.0 on December 22, 2024 and by $100.0 each year thereafter until its termination date on December 22, 2027. The notional value of the swap was $700.0 at December 31, 2023. 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 the forecasted payment of inventory purchases due to short term currency fluctuations. Energizer’s foreign affiliates, which have the largest exposure 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 December 31, 2023 and September 30, 2023, Energizer had an unrealized pre-tax loss of $3.7 and an unrealized pre-tax gain of $3.3, respectively, on these forward currency contracts accounted for as cash flow hedges included in Accumulated other comprehensive loss on the Consolidated (Condensed) Balance Sheets. Assuming foreign exchange rates versus the U.S. dollar remain at December 31, 2023 levels, over the next 12 months $3.3 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 2025. There were 68 open foreign currency contracts at December 31, 2023, with a total notional value of approximately $160. The Company has entered into hedging contracts on future zinc purchases to reduce exposure to variability in cash flows associated with price volatility. The contracts are determined to be cash flow hedges and qualify for hedge accounting. The contract maturities for these hedges extend into fiscal 2025. There were 18 open contracts at December 31, 2023, with a total notional value of approximately $34. The Company had an unrealized pre-tax gain of $0.7 and an unrealized pre-tax loss of $0.7 on these hedges at December 31, 2023 and September 30, 2023, respectively, and was included in Accumulated other comprehensive loss on the Consolidated (Condensed) Balance Sheet. At December 31, 2023 and September 30, 2023, Energizer recorded an unrealized pre-tax gain of $59.2 and $79.8, respectively, on the Interest rate swap agreement, both of which were included in Accumulated other comprehensive loss on the Consolidated (Condensed) Balance Sheet. Derivatives not Designated in Hedging Relationships —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 are expected to be offset by corresponding exchange losses or gains on the underlying exposures, and as such are not subject to significant market risk. There were eight open foreign currency derivative contracts which are not designated as cash flow hedges at December 31, 2023, with a total notional value of approximately $151. The following table provides the Company's estimated fair values as of December 31, 2023 and September 30, 2023, and the amounts of gains and losses on derivative instruments classified as cash flow hedges for the three months ended December 31, 2023 and 2022, respectively: At December 31, 2023 For the Quarter Ended December 31, 2023 Derivatives designated as Cash Flow Hedging Relationships Estimated Fair Value (Liability) / Asset (1) Loss Recognized in OCI (2) Gain/(Loss) Reclassified From OCI into Income (3) (4) Foreign currency contracts $ (3.7) $ (6.1) $ 0.9 Interest rate swap 59.2 (12.6) 8.0 Zinc contracts 0.7 (1.8) (3.2) Total $ 56.2 $ (20.5) $ 5.7 At September 30, 2023 For the Quarter Ended December 31, 2022 Derivatives designated as Cash Flow Hedging Relationships Estimated Fair Value Asset / (Liability) (1) (Loss)/Gain Recognized in OCI (2) Gain Reclassified From OCI into Income (3) (4) Foreign currency contracts $ 3.3 $ (9.2) $ 6.5 Interest rate swap 79.8 — 4.9 Zinc contracts (0.7) 3.5 1.1 Total $ 82.4 $ (5.7) $ 12.5 (1) All derivative assets are presented in Other current assets or Other assets. All derivative liabilities are presented in Other current liabilities or Other liabilities. (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 December 31, 2023 and September 30, 2023 and the gains and losses on derivative instruments not classified as cash flow hedges for the three months ended December 31, 2023 and 2022, respectively: At December 31, 2023 For the Quarter Ended December 31, 2023 Estimated Fair Value Asset (1) Gain Recognized in Income (2) Foreign currency contracts $ 2.1 $ 3.2 At September 30, 2023 For the Quarter Ended December 31, 2022 Estimated Fair Value Liability (1) Gain Recognized in Income (2) Foreign currency contracts $ (1.3) $ 0.5 (1) All derivative assets and liabilities are presented in Other current assets or Other assets and Other current liabilities or Other liabilities, respectively. (2) Gain / (Loss) recognized in Income was recorded as foreign currency in Other items, net. Energizer has the following recognized financial assets 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 December 31, 2023 At September 30, 2023 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 $ 2.4 $ (0.3) $ 2.1 $ 4.4 $ (1.0) $ 3.4 Offsetting of derivative liabilities At December 31, 2023 At September 30, 2023 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 $ (4.0) $ 0.3 $ (3.7) $ (2.4) $ 1.0 $ (1.4) 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 December 31, 2023 and September 30, 2023 that are measured on a recurring basis during the period, segregated by level within the fair value hierarchy: Level 2 (Liabilities)/Assets at estimated fair value: December 31, September 30, Deferred compensation $ (22.7) $ (21.0) Derivatives - Foreign Currency contracts (3.7) 3.3 Derivatives - Foreign Currency contracts (non-hedge) 2.1 (1.3) Derivatives - Interest Rate Swap 59.2 79.8 Derivatives - Zinc contracts 0.7 (0.7) Net Assets at estimated fair value $ 35.6 $ 60.1 Energizer had no Level 1 financial assets or liabilities, other than pension plan assets, and no Level 3 financial assets or liabilities at December 31, 2023 and September 30, 2023. The Company does measure certain assets and liabilities, such as Goodwill and Other intangibles, at fair value on a non-recurring basis using Level 3 inputs. There were no Level 3 fair value measurement gains or losses recognized during the quarters ended December 31, 2023 or 2022. Due to the nature of cash and cash equivalents, 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 December 31, 2023, 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 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 December 31, 2023, the fair market value of fixed rate long-term debt was $2,172.2 compared to its carrying value of $2,392.4, and at September 30, 2023, the fair market value of fixed rate long-term debt was $2,000.9 compared to its carrying value of $2,362.2. 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss)/Income | 3 Months Ended |
Dec. 31, 2023 | |
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 Contracts Total Balance at September 30, 2023 $ (89.7) $ (110.3) $ (0.5) $ 2.1 $ 60.7 $ (137.7) OCI before reclassifications (1.1) (1.5) (1.3) (4.6) (9.4) (17.9) Reclassifications to earnings — 0.6 2.4 (0.6) (6.1) (3.7) Balance at December 31, 2023 $ (90.8) $ (111.2) $ 0.6 $ (3.1) $ 45.2 $ (159.3) The following table presents the reclassifications out of AOCI to earnings: For the Quarters Ended December 31, 2023 2022 Details of AOCI Components Amount Reclassified Affected Line Item in the Combined Statements of Earnings Gains and losses on cash flow hedges Foreign currency contracts $ (0.9) $ (6.5) Cost of products sold Interest rate contracts (8.0) (4.9) Interest expense Zinc contracts 3.2 (1.1) Cost of products sold (5.7) (12.5) Earnings before income taxes 1.4 3.2 Income tax expense $ (4.3) $ (9.3) Net earnings Amortization of defined benefit pension items Actuarial loss 0.7 0.7 (2) (0.1) (0.1) Income tax benefit $ 0.6 $ 0.6 Net loss Total reclassifications to earnings $ (3.7) $ (8.7) Net earnings (1) Amounts in parentheses indicate credits to Consolidated (Condensed) Statement of Earnings and Comprehensive Income. (2) This AOCI component is included in the computation of net periodic pension benefit/(cost) (see Note 10, Pension Plans, for further details). |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 3 Months Ended |
Dec. 31, 2023 | |
Financial Statement Related Disclosures [Abstract] | |
Suplemental Financial Statement Information | Supplemental Financial Statement Information The components of certain income statement accounts are as follows: For the Quarters Ended December 31, 2023 2022 Other items, net Interest income $ (5.6) $ (0.2) Foreign currency exchange loss/(gain) (1) 23.7 (1.0) Pension cost other than service costs 1.0 0.7 Transition services agreement income (1.0) — Other 0.9 (0.9) Total Other items, net $ 19.0 $ (1.4) (1) Foreign currency exchange loss includes the currency impact from the December 2023 Argentina economic reform. During December 2023, a new president was inaugurated in Argentina bringing significant economic reform to the country including devaluing the Argentine Peso by 50% in the month of December. As a result of this reform and devaluation, the Company recorded $21.0 of exchange losses in Other items, net on the Consolidated (Condensed) Statement of Earnings. The components of certain balance sheet accounts are as follows: December 31, 2023 September 30, 2023 Inventories Raw materials and supplies $ 140.6 $ 113.5 Work in process 201.1 258.5 Finished products 298.9 277.7 Total inventories $ 640.6 $ 649.7 Other Current Assets Miscellaneous receivables $ 23.6 $ 20.8 Prepaid expenses 117.0 83.6 Value added tax collectible from customers 38.1 30.6 Other 33.6 37.0 Total other current assets $ 212.3 $ 172.0 Property, Plant and Equipment Land $ 13.0 $ 12.9 Buildings 137.9 135.2 Machinery and equipment 832.8 832.9 Construction in progress 80.3 69.7 Finance Leases 55.8 39.2 Total gross property 1,119.8 1,089.9 Accumulated depreciation (735.5) (726.2) Total property, plant and equipment, net $ 384.3 $ 363.7 Other Current Liabilities Accrued advertising, sales promotion and allowances $ 19.1 $ 12.9 Accrued trade allowances 42.3 52.7 Accrued freight and warehousing 32.0 35.1 Accrued salaries, vacations and incentive compensation 33.7 57.9 Accrued interest expense 11.4 20.5 Restructuring and related cost reserve 15.3 17.1 Income taxes payable 52.9 36.9 Other 110.7 92.5 Total other current liabilities $ 317.4 $ 325.6 Other Liabilities Pensions and other retirement benefits $ 55.8 $ 55.0 Deferred compensation 17.6 17.4 Mandatory transition tax 12.8 12.8 Restructuring and related cost reserve 1.6 2.5 Other non-current liabilities 45.4 47.8 Total other liabilities $ 133.2 $ 135.5 |
Legal proceedings_contingencies
Legal proceedings/contingencies and other obligations | 3 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal proceedings/contingencies and other obligations | Legal proceedings/contingencies and other obligations Legal proceedings/contingencies - 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. The Company and its affiliates are a party to legal proceedings and claims that arise during the ordinary course of business. The Company reviews our legal proceedings and claims, regulatory reviews and inspections and other legal proceedings on an ongoing basis and follows appropriate accounting guidance when making accrual and disclosure decisions. The Company establishes accruals for those contingencies where the incurrence of a loss is probable and can be reasonably estimated, and discloses 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. The Company does 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, when taking into account established accruals for estimated liabilities. Other obligations - 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 December 31, 2023, the Company had approximately $7.4 of purchase obligations under these contracts. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net earnings | $ 1.9 | $ 49 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 3 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation - The accompanying Consolidated (Condensed) 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. |
Recently Adopted Accounting Pronouncements And Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements – In September 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2022-04, Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. The new guidance requires qualitative and quantitative disclosure sufficient to enable users of the financial statements to understand the nature, activity during the period, changes from period to period and potential magnitude of such programs. The amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal periods, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. The Company adopted the required guidance in the first quarter of fiscal 2024. The Company has a voluntary Supplier Financing Program (the program) in collaboration with certain financial institutions that offers participating suppliers access to a third-party service which allows them to view scheduled payments online and enables them the ability to request payment of their invoices from the financial institutions earlier than the negotiated terms with the Company. The Company is not a party to the negotiations or agreements reached between participating suppliers and third-party financial institutions. The Company's obligations, including the amounts due and payment terms, remain unaffected by our suppliers’ decision to participate in the program. The Company does not provide any form of guarantee or assume any liability in connection with the agreements between our suppliers and the third-party financial institutions involved in the program. As of December 31, 2023 and September 30, 2023, the Company had $55.4 and $60.9, respectively, of outstanding supplier obligations confirmed as valid under the program which are included within Accounts payable on the Consolidated (Condensed) Balance Sheets. Recently Issued Accounting Pronouncements - In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures. This guidance requires disclosure of incremental segment information on an annual and interim basis. This amendment is effective for our fiscal year ending September 30, 2025 and our interim periods within the fiscal year ending September 30, 2026. We are currently assessing the impact of this guidance on our disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes: Improvements to Income Tax Disclosures. This guidance requires consistent categories and greater disaggregation of information in the rate reconciliation and disclosures of income taxes paid by jurisdiction. This amendment is effective for our fiscal year ending September 30, 2026. We are currently assessing the impact of this guidance on our disclosures. |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
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 quarters ended December 31, 2023 and 2022: For the Quarters Ended December 31, Net Sales by products 2023 2022 Batteries $ 591.4 $ 639.5 Auto Care 98.8 93.5 Lights 26.4 32.1 Total Net Sales $ 716.6 $ 765.1 For the Quarters Ended December 31, 2023 2022 Net Sales by markets North America $ 416.3 $ 456.3 Modern Markets 155.0 153.6 Developing Markets 106.0 108.5 Distributors Markets 39.3 46.7 Total Net Sales $ 716.6 $ 765.1 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The pre-tax expense for charges related to the restructuring for the quarters ended December 31, 2023 and 2022 are noted in the table below, and were reflected in the Consolidated (Condensed) Statement of Earnings and Comprehensive Income: For the Quarters Ended December 31, 2023 2022 Project Momentum Restructuring Program Costs of products sold Severance and related benefit costs $ 0.5 $ — Accelerated depreciation & asset write-offs 1.3 — Other restructuring related costs (1) 11.0 0.3 Selling, general and administrate expense Severance and related benefit costs 1.8 0.5 Accelerated depreciation & asset write-offs 0.5 — Other restructuring related costs (2) 3.4 5.8 Momentum Restructuring Cost Total $ 18.5 $ 6.6 IT enablement (3) 3.9 — Total restructuring and related costs $ 22.4 $ 6.6 (1) Includes charges primarily related to consulting, relocation, decommissioning, and other facility exit costs. (2) Primarily includes consulting, real estate rationalization costs, and legal fees for the restructuring program. (3) Relates to operating expenses for new IT systems, primarily the organizational design and change management costs, which are enabling the Company to complete restructuring initiatives. Costs are included in SG&A in the Consolidated (Condensed) Statement of Earnings and Comprehensive Income. |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the restructuring and related costs reserve activity related to the Project Momentum restructuring program for the quarters ended December 31, 2022 and 2023: Utilized September 30, 2022 (1) Charge to Income Cash Non-Cash December 31, 2022 (1) Severance & termination related costs $ — $ 0.5 $ 0.2 $ — $ 0.3 Other restructuring related costs 0.9 6.1 3.8 — 3.2 Total restructuring and related costs $ 0.9 $ 6.6 $ 4.0 $ — $ 3.5 Utilized September 30, 2023 (1) Charge to Income Cash Non-Cash December 31, 2023 (1) Severance & termination related costs $ 15.4 $ 2.3 $ 3.9 $ — $ 13.8 Accelerated depreciation & asset write-offs — 1.8 — 1.8 — Other restructuring related costs 3.3 14.4 15.4 0.1 2.2 IT enablement 0.9 3.9 3.8 0.1 0.9 Total restructuring and related costs $ 19.6 $ 22.4 $ 23.1 $ 2.0 $ 16.9 (1) Th e restructuring and related costs reserve is recorded on the Consolidated (Condensed) Balance Sheet in Other current liabilities and Other long term liabilities. Refer to Note 13, Supplemental Financial Statement Information for additional details. |
Segments (Tables)
Segments (Tables) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2021 | |
Segment Reporting [Abstract] | ||
Schedule of Segment Reporting Information, by Segment | Segment sales and profitability for the quarters ended December 31, 2023 and 2022 are presented below: For the Quarters Ended December 31, 2023 2022 Net Sales Batteries & Lights $ 617.8 $ 671.6 Auto Care 98.8 93.5 Total Net Sales $ 716.6 $ 765.1 Segment Profit Batteries & Lights $ 132.4 $ 138.3 Auto Care 6.9 10.6 Total segment profit $ 139.3 $ 148.9 General corporate and other expenses (1) (29.2) (25.4) Amortization of intangible assets (14.5) (16.0) Project Momentum restructuring and related costs (2) (22.4) (6.6) Acquisition and integration costs (3) (2.6) — Interest expense (40.7) (42.9) (Loss)/gain on extinguishment of debt (0.5) 2.9 December 2023 Argentina Economic Reform (4) (21.0) — Other items - Adjusted 1.0 1.4 Total earnings before income taxes $ 9.4 $ 62.3 Depreciation and amortization Batteries & Lights $ 13.0 $ 13.4 Auto Care 2.5 2.7 Total segment depreciation and amortization $ 15.5 $ 16.1 Amortization of intangible assets 14.5 16.0 Total depreciation and amortization $ 30.0 $ 32.1 (1) Included in SG&A in the Consolidated (Condensed) Statement of Earnings and Comprehensive Income. (2) Restructuring and related costs were included in the following lines in the Consolidated (Condensed) Statement of Earnings and Comprehensive Income: For the Quarters Ended December 31, Restructuring and related costs 2023 2022 Cost of products sold $ 12.8 $ 0.3 SG&A - Restructuring costs 5.7 6.3 SG&A - IT Enablement 3.9 — Total Restructuring and related costs $ 22.4 $ 6.6 (3) Acquisition and integration costs included $2.9 recorded in Cost of products sold, $0.7 recorded in SG&A and income of $1.0 recorded in Other items, net. Refer to Note 3, Acquisitions, for further information. (4) During December 2023, a new president was inaugurated in Argentina bringing significant economic reform to the country including devaluing the Argentine Peso by 50% in the month of December (December 2023 Argentina Reform). In addition, new regulations were implemented reducing restrictions around foreign currency purchases. As a result of this reform and devaluation, the Company recorded $21.0 of exchange losses in Other items, net on the Consolidated (Condensed) Statement of Earnings. | |
Reconciliation of Assets from Segment to Consolidated | Total Assets December 31, 2023 September 30, 2023 Batteries & Lights $ 1,300.2 $ 1,362.0 Auto Care 380.2 423.5 Total segment assets $ 1,680.4 $ 1,785.5 Corporate 495.4 470.2 Goodwill and other intangible assets 2,248.1 2,253.9 Total assets $ 4,423.9 $ 4,509.6 |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
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 quarters ended December 31, 2023 and 2022: (in millions, except per share data) For the Quarters Ended December 31, Basic net earnings per share 2023 2022 Net earnings $ 1.9 $ 49.0 Weighted average common shares outstanding - Basic 71.7 71.4 Basic net earnings per common share $ 0.03 $ 0.69 Diluted net earnings per share Weighted average common shares outstanding - Basic 71.7 71.4 Dilutive effect of RSU 0.4 0.2 Dilutive effect of performance shares 0.5 0.5 Dilutive effect of stock based deferred compensation plan — 0.1 Weighted average common shares outstanding - Diluted 72.6 72.2 Diluted net earnings per common share $ 0.03 $ 0.68 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table sets forth goodwill by segment as of October 1, 2023 and December 31, 2023: Batteries & Lights Auto Care Total Balance at October 1, 2023 $ 882.0 $ 134.2 $ 1,016.2 Cumulative translation adjustment 7.5 — 7.5 Balance at December 31, 2023 $ 889.5 $ 134.2 $ 1,023.7 |
Schedule of Finite-Lived Intangible Assets | Total intangible assets at December 31, 2023 are as follows: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trademarks and trade names $ 142.7 $ (31.5) $ 111.2 Customer relationships 394.5 (146.6) 247.9 Patents 34.2 (19.5) 14.7 Proprietary technology 172.5 (104.5) 68.0 Proprietary formulas 29.2 (10.3) 18.9 Total Amortizable intangible assets 773.1 (312.4) 460.7 Trademarks and trade names - indefinite lived 763.7 — 763.7 Total Other intangible assets, net $ 1,536.8 $ (312.4) $ 1,224.4 Total intangible assets at September 30, 2023 were as follows: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trademarks and trade names $ 142.4 $ (29.4) $ 113.0 Customer relationships 394.2 (139.7) 254.5 Patents 33.9 (18.2) 15.7 Proprietary technology 172.5 (100.0) 72.5 Proprietary formulas 29.2 (10.0) 19.2 Total Amortizable intangible assets 772.2 (297.3) 474.9 Trademarks and trade names - indefinite lived 762.8 — 762.8 Total Other intangible assets, net $ 1,535.0 $ (297.3) $ 1,237.7 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The detail of long-term debt was as follows: December 31, 2023 September 30, 2023 Senior Secured Term Loan Facility due 2027 $ 904.0 $ 982.0 6.500% Senior Notes due 2027 300.0 300.0 4.750% Senior Notes due 2028 583.7 583.7 4.375% Senior Notes due 2029 791.3 791.3 3.50% Senior Notes due 2029 (Euro Notes of €650.0) (1) 717.4 687.2 Finance lease obligations (2) 49.7 32.0 Total long-term debt, including current maturities $ 3,346.1 $ 3,376.2 Less current portion (12.9) (12.3) Less unamortized debt premium and debt issuance fees (29.9) (31.8) Total long-term debt $ 3,303.3 $ 3,332.1 |
Schedule of Maturities of Long-term Debt | Debt Maturities - Aggregate maturities of long-term debt as of December 31, 2023 are as follows: Long-term debt One year $ 12.0 Two year 12.0 Three year 12.0 Four year 1,168.0 Five year 583.7 Thereafter 1,508.7 Total long-term debt payments due $ 3,296.4 |
Pension Plans (Tables)
Pension Plans (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The Company’s net periodic pension cost for these plans are as follows: For the Quarters Ended December 31, U.S. International 2023 2022 2023 2022 Service cost $ — $ — $ 0.1 $ 0.1 Interest cost 3.6 5.1 0.8 0.8 Expected return on plan assets (3.3) (5.2) (0.8) (0.7) Amortization of unrecognized net losses 0.5 0.6 0.2 0.1 Net periodic cost $ 0.8 $ 0.5 $ 0.3 $ 0.3 |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
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 December 31, 2023 and September 30, 2023, and the amounts of gains and losses on derivative instruments classified as cash flow hedges for the three months ended December 31, 2023 and 2022, respectively: At December 31, 2023 For the Quarter Ended December 31, 2023 Derivatives designated as Cash Flow Hedging Relationships Estimated Fair Value (Liability) / Asset (1) Loss Recognized in OCI (2) Gain/(Loss) Reclassified From OCI into Income (3) (4) Foreign currency contracts $ (3.7) $ (6.1) $ 0.9 Interest rate swap 59.2 (12.6) 8.0 Zinc contracts 0.7 (1.8) (3.2) Total $ 56.2 $ (20.5) $ 5.7 At September 30, 2023 For the Quarter Ended December 31, 2022 Derivatives designated as Cash Flow Hedging Relationships Estimated Fair Value Asset / (Liability) (1) (Loss)/Gain Recognized in OCI (2) Gain Reclassified From OCI into Income (3) (4) Foreign currency contracts $ 3.3 $ (9.2) $ 6.5 Interest rate swap 79.8 — 4.9 Zinc contracts (0.7) 3.5 1.1 Total $ 82.4 $ (5.7) $ 12.5 (1) All derivative assets are presented in Other current assets or Other assets. All derivative liabilities are presented in Other current liabilities or Other liabilities. (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 December 31, 2023 and September 30, 2023 and the gains and losses on derivative instruments not classified as cash flow hedges for the three months ended December 31, 2023 and 2022, respectively: At December 31, 2023 For the Quarter Ended December 31, 2023 Estimated Fair Value Asset (1) Gain Recognized in Income (2) Foreign currency contracts $ 2.1 $ 3.2 At September 30, 2023 For the Quarter Ended December 31, 2022 Estimated Fair Value Liability (1) Gain Recognized in Income (2) Foreign currency contracts $ (1.3) $ 0.5 (1) All derivative assets and liabilities are presented in Other current assets or Other assets and Other current liabilities or Other liabilities, respectively. (2) Gain / (Loss) recognized in Income was recorded as foreign currency in Other items, net. |
Offsetting Liabilities | Offsetting of derivative assets At December 31, 2023 At September 30, 2023 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 $ 2.4 $ (0.3) $ 2.1 $ 4.4 $ (1.0) $ 3.4 Offsetting of derivative liabilities At December 31, 2023 At September 30, 2023 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 $ (4.0) $ 0.3 $ (3.7) $ (2.4) $ 1.0 $ (1.4) |
Offsetting Assets | Offsetting of derivative assets At December 31, 2023 At September 30, 2023 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 $ 2.4 $ (0.3) $ 2.1 $ 4.4 $ (1.0) $ 3.4 Offsetting of derivative liabilities At December 31, 2023 At September 30, 2023 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 $ (4.0) $ 0.3 $ (3.7) $ (2.4) $ 1.0 $ (1.4) |
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 December 31, 2023 and September 30, 2023 that are measured on a recurring basis during the period, segregated by level within the fair value hierarchy: Level 2 (Liabilities)/Assets at estimated fair value: December 31, September 30, Deferred compensation $ (22.7) $ (21.0) Derivatives - Foreign Currency contracts (3.7) 3.3 Derivatives - Foreign Currency contracts (non-hedge) 2.1 (1.3) Derivatives - Interest Rate Swap 59.2 79.8 Derivatives - Zinc contracts 0.7 (0.7) Net Assets at estimated fair value $ 35.6 $ 60.1 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss)/Income (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
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 Contracts Total Balance at September 30, 2023 $ (89.7) $ (110.3) $ (0.5) $ 2.1 $ 60.7 $ (137.7) OCI before reclassifications (1.1) (1.5) (1.3) (4.6) (9.4) (17.9) Reclassifications to earnings — 0.6 2.4 (0.6) (6.1) (3.7) Balance at December 31, 2023 $ (90.8) $ (111.2) $ 0.6 $ (3.1) $ 45.2 $ (159.3) |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents the reclassifications out of AOCI to earnings: For the Quarters Ended December 31, 2023 2022 Details of AOCI Components Amount Reclassified Affected Line Item in the Combined Statements of Earnings Gains and losses on cash flow hedges Foreign currency contracts $ (0.9) $ (6.5) Cost of products sold Interest rate contracts (8.0) (4.9) Interest expense Zinc contracts 3.2 (1.1) Cost of products sold (5.7) (12.5) Earnings before income taxes 1.4 3.2 Income tax expense $ (4.3) $ (9.3) Net earnings Amortization of defined benefit pension items Actuarial loss 0.7 0.7 (2) (0.1) (0.1) Income tax benefit $ 0.6 $ 0.6 Net loss Total reclassifications to earnings $ (3.7) $ (8.7) Net earnings (1) Amounts in parentheses indicate credits to Consolidated (Condensed) Statement of Earnings and Comprehensive Income. (2) This AOCI component is included in the computation of net periodic pension benefit/(cost) (see Note 10, Pension Plans, for further details). |
Supplemental Financial Statem_2
Supplemental Financial Statement Information (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Financial Statement Related Disclosures [Abstract] | |
Supplemental Income Statement and Balance Sheet Information | The components of certain income statement accounts are as follows: For the Quarters Ended December 31, 2023 2022 Other items, net Interest income $ (5.6) $ (0.2) Foreign currency exchange loss/(gain) (1) 23.7 (1.0) Pension cost other than service costs 1.0 0.7 Transition services agreement income (1.0) — Other 0.9 (0.9) Total Other items, net $ 19.0 $ (1.4) (1) Foreign currency exchange loss includes the currency impact from the December 2023 Argentina economic reform. During December 2023, a new president was inaugurated in Argentina bringing significant economic reform to the country including devaluing the Argentine Peso by 50% in the month of December. As a result of this reform and devaluation, the Company recorded $21.0 of exchange losses in Other items, net on the Consolidated (Condensed) Statement of Earnings. The components of certain balance sheet accounts are as follows: December 31, 2023 September 30, 2023 Inventories Raw materials and supplies $ 140.6 $ 113.5 Work in process 201.1 258.5 Finished products 298.9 277.7 Total inventories $ 640.6 $ 649.7 Other Current Assets Miscellaneous receivables $ 23.6 $ 20.8 Prepaid expenses 117.0 83.6 Value added tax collectible from customers 38.1 30.6 Other 33.6 37.0 Total other current assets $ 212.3 $ 172.0 Property, Plant and Equipment Land $ 13.0 $ 12.9 Buildings 137.9 135.2 Machinery and equipment 832.8 832.9 Construction in progress 80.3 69.7 Finance Leases 55.8 39.2 Total gross property 1,119.8 1,089.9 Accumulated depreciation (735.5) (726.2) Total property, plant and equipment, net $ 384.3 $ 363.7 Other Current Liabilities Accrued advertising, sales promotion and allowances $ 19.1 $ 12.9 Accrued trade allowances 42.3 52.7 Accrued freight and warehousing 32.0 35.1 Accrued salaries, vacations and incentive compensation 33.7 57.9 Accrued interest expense 11.4 20.5 Restructuring and related cost reserve 15.3 17.1 Income taxes payable 52.9 36.9 Other 110.7 92.5 Total other current liabilities $ 317.4 $ 325.6 Other Liabilities Pensions and other retirement benefits $ 55.8 $ 55.0 Deferred compensation 17.6 17.4 Mandatory transition tax 12.8 12.8 Restructuring and related cost reserve 1.6 2.5 Other non-current liabilities 45.4 47.8 Total other liabilities $ 133.2 $ 135.5 |
Description of Business and B_3
Description of Business and Basis of Presentation - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Supplier finance program, obligation | $ 55.4 | $ 60.9 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Product and Market Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Net Sales by products | $ 716.6 | $ 765.1 |
Modern Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales by products | 155 | 153.6 |
Developing Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales by products | 106 | 108.5 |
Distributors Markets | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales by products | 39.3 | 46.7 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales by products | 416.3 | 456.3 |
Batteries | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales by products | 591.4 | 639.5 |
Auto Care | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales by products | 98.8 | 93.5 |
Lights | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales by products | $ 26.4 | $ 32.1 |
Acquisition - Narrative (Detail
Acquisition - Narrative (Details) € in Millions, $ in Millions | 3 Months Ended | ||
Oct. 27, 2023 EUR (€) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Asset Acquisition [Line Items] | |||
Purchase price of acquisition | $ 11.6 | $ 0 | |
APS Battery Manufacturing Assets | |||
Asset Acquisition [Line Items] | |||
Asset acquisition, consideration transferred | € | € 3.5 | ||
Acquisition and integration costs | 2.6 | ||
Costs of products sold | APS Battery Manufacturing Assets | |||
Asset Acquisition [Line Items] | |||
Acquisition and integration costs, operating costs | 2.9 | ||
Other Nonoperating Income (Expense) | APS Battery Manufacturing Assets | |||
Asset Acquisition [Line Items] | |||
Asset acquisition, income from producing inventory | 1 | ||
Selling, general and administrate expense | APS Battery Manufacturing Assets | |||
Asset Acquisition [Line Items] | |||
Legal and diligence fees | $ 0.7 |
Restructuring Narrative (Detail
Restructuring Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 22.4 | $ 6.6 |
Other Restructuring, Non-Cash Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected restructuring costs | 20 | |
Batteries & Lights | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 20.8 | 5.8 |
Auto Care | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 1.6 | $ 0.8 |
Minimum | Facility Closing | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected restructuring costs | 140 | |
Minimum | Capital Expenditures | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected restructuring costs | 75 | |
Maximum | Facility Closing | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected restructuring costs | 150 | |
Maximum | Capital Expenditures | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected restructuring costs | $ 85 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring and related costs | $ 22.4 | $ 6.6 |
Costs of products sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring and related costs | 12.8 | 0.3 |
Selling, general and administrate expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring and related costs | 5.7 | 6.3 |
Selling, general and administrate expense | IT enablement | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring and related costs | 3.9 | 0 |
Project Momentum Restructuring | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring and related costs | 18.5 | 6.6 |
Project Momentum Restructuring | Costs of products sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and related benefit costs | 0.5 | 0 |
Accelerated depreciation & asset write-offs | 1.3 | 0 |
Other restructuring related costs | 11 | 0.3 |
Project Momentum Restructuring | Selling, general and administrate expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and related benefit costs | 1.8 | 0.5 |
Accelerated depreciation & asset write-offs | 0.5 | 0 |
Other restructuring related costs | $ 3.4 | $ 5.8 |
Restructuring, Reserve (Details
Restructuring, Reserve (Details) - Project Momentum Restructuring - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | $ 19.6 | $ 0.9 |
Charge to Income | 22.4 | 6.6 |
Cash | 23.1 | 4 |
Non-Cash | 2 | 0 |
Restructuring Reserve, Ending Balance | 16.9 | 3.5 |
Severance & termination related costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | 15.4 | 0 |
Charge to Income | 2.3 | 0.5 |
Cash | 3.9 | 0.2 |
Non-Cash | 0 | 0 |
Restructuring Reserve, Ending Balance | 13.8 | 0.3 |
Accelerated depreciation & asset write-offs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | 0 | |
Charge to Income | 1.8 | |
Cash | 0 | |
Non-Cash | 1.8 | |
Restructuring Reserve, Ending Balance | 0 | |
Other restructuring related costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | 3.3 | 0.9 |
Charge to Income | 14.4 | 6.1 |
Cash | 15.4 | 3.8 |
Non-Cash | 0.1 | 0 |
Restructuring Reserve, Ending Balance | 2.2 | $ 3.2 |
IT enablement | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | 0.9 | |
Charge to Income | 3.9 | |
Cash | 3.8 | |
Non-Cash | 0.1 | |
Restructuring Reserve, Ending Balance | $ 0.9 |
Segments - Schedule of Segment
Segments - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 716.6 | $ 765.1 |
Segment Profit | 267 | 298.3 |
Amortization of intangible assets | (14.5) | (16) |
Restructuring costs | (22.4) | (6.6) |
Loss on extinguishment of debt | (0.5) | 2.9 |
December 2023 Argentina Economic Reform (4) | (23.7) | 1 |
Net (loss)/earnings | 9.4 | 62.3 |
Depreciation and amortization | 30 | 32.1 |
ARGENTINA | ||
Segment Reporting Information [Line Items] | ||
December 2023 Argentina Economic Reform (4) | (21) | |
Cost of Sales | ||
Segment Reporting Information [Line Items] | ||
Restructuring costs | (12.8) | (0.3) |
Selling, general and administrate expense | ||
Segment Reporting Information [Line Items] | ||
Restructuring costs | (5.7) | (6.3) |
Selling, general and administrate expense | IT enablement | ||
Segment Reporting Information [Line Items] | ||
Restructuring costs | (3.9) | 0 |
Project Momentum Restructuring | ||
Segment Reporting Information [Line Items] | ||
Restructuring costs | (18.5) | (6.6) |
Batteries & Lights | ||
Segment Reporting Information [Line Items] | ||
Restructuring costs | (20.8) | (5.8) |
Auto Care | ||
Segment Reporting Information [Line Items] | ||
Restructuring costs | (1.6) | (0.8) |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Segment Profit | 139.3 | 148.9 |
Depreciation and amortization | 15.5 | 16.1 |
Operating Segments | Batteries & Lights | ||
Segment Reporting Information [Line Items] | ||
Net sales | 617.8 | 671.6 |
Segment Profit | 132.4 | 138.3 |
Depreciation and amortization | 13 | 13.4 |
Operating Segments | Auto Care | ||
Segment Reporting Information [Line Items] | ||
Net sales | 98.8 | 93.5 |
Segment Profit | 6.9 | 10.6 |
Depreciation and amortization | 2.5 | 2.7 |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
General corporate and other expenses | (29.2) | (25.4) |
Amortization of intangible assets | (14.5) | (16) |
Acquisition and integration costs | 2.6 | 0 |
Interest expense | (40.7) | (42.9) |
Loss on extinguishment of debt | (0.5) | 2.9 |
Other items, net | 1 | 1.4 |
Depreciation and amortization | 14.5 | 16 |
Segment Reconciling Items | ARGENTINA | ||
Segment Reporting Information [Line Items] | ||
December 2023 Argentina Economic Reform (4) | $ (21) | $ 0 |
Segments - Restructuring and re
Segments - Restructuring and related costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Restructuring costs | $ 22.4 | $ 6.6 |
Foreign currency exchange gain (loss) | 23.7 | (1) |
ARGENTINA | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Foreign currency exchange gain (loss) | 21 | |
Cost of Sales | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Restructuring costs | 12.8 | 0.3 |
Selling, general and administrate expense | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Restructuring costs | 5.7 | 6.3 |
Selling, general and administrate expense | APS Battery Manufacturing Assets | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Legal and diligence fees | 0.7 | |
Selling, general and administrate expense | IT enablement | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Restructuring costs | 3.9 | $ 0 |
Costs of products sold | APS Battery Manufacturing Assets | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Acquisition and integration costs, operating costs | $ 2.9 |
Segments - Reconciliation of As
Segments - Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Goodwill and other intangible assets | $ 2,248.1 | $ 2,253.9 |
Total assets | 4,423.9 | 4,509.6 |
Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Tangible assets | 1,680.4 | 1,785.5 |
Operating Segments | Batteries & Lights | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Tangible assets | 1,300.2 | 1,362 |
Operating Segments | Auto Care | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Tangible assets | 380.2 | 423.5 |
Corporate | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Tangible assets | $ 495.4 | $ 470.2 |
Earnings per share - Schedule o
Earnings per share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net earnings | $ 1.9 | $ 49 |
Weighted average number of shares outstanding, basic (in shares) | 71.7 | 71.4 |
Basic net (loss)/earnings per common share (in dollars per share) | $ 0.03 | $ 0.69 |
Weighted average number of shares outstanding, diluted (in shares) | 72.6 | 72.2 |
Diluted net (loss)/earnings per common share- continuing operations (in dollars per share) | $ 0.03 | $ 0.68 |
Restricted Stock Equivalents | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.5 | 0.2 |
Performance Shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1.3 | 1.3 |
Deferred Compensation, Share-based Payments | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Effect of dilutive performance shares (shares) | 0 | 0.1 |
Retained (Losses)/Earnings | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net earnings | $ 1.9 | |
Performance Shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Effect of dilutive performance shares (shares) | 0.5 | 0.5 |
Restricted Stock Equivalents | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Effect of dilutive performance shares (shares) | 0.4 | 0.2 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financial Statement Related Disclosures [Line Items] | ||
Effective tax rate, percent | 79.80% | 21.30% |
Foreign currency exchange gain (loss) | $ 23.7 | $ (1) |
ARGENTINA | ||
Financial Statement Related Disclosures [Line Items] | ||
Foreign currency exchange gain (loss) | $ 21 |
Goodwill and intangible asset_2
Goodwill and intangible assets - Schedule of Goodwill (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 1,016.2 |
Cumulative translation adjustment | 7.5 |
Ending balance | 1,023.7 |
Batteries & Lights | |
Goodwill [Roll Forward] | |
Beginning balance | 882 |
Cumulative translation adjustment | 7.5 |
Ending balance | 889.5 |
Auto Care | |
Goodwill [Roll Forward] | |
Beginning balance | 134.2 |
Cumulative translation adjustment | 0 |
Ending balance | $ 134.2 |
Goodwill and intangible asset_3
Goodwill and intangible assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Indefinite-lived intangible assets | $ 763.7 | $ 762.8 |
Cumulative translation adjustment | $ 7.5 |
Goodwill and intangible asset_4
Goodwill and intangible assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Sep. 30, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||
Cumulative translation adjustment | $ 7.5 | |
Gross Carrying Amount | 773.1 | $ 772.2 |
Trademarks and trade names - indefinite lived | 763.7 | 762.8 |
Total Other intangible assets, net | 1,536.8 | 1,535 |
Accumulated Amortization | (312.4) | (297.3) |
Net Carrying Amount | 460.7 | 474.9 |
Total Other intangible assets, net | 1,224.4 | 1,237.7 |
Trademarks and trade names - indefinite lived | ||
Finite-Lived Intangible Assets [Line Items] | ||
Trademarks and trade names - indefinite lived | 762.8 | |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 142.7 | 142.4 |
Accumulated Amortization | (31.5) | (29.4) |
Net Carrying Amount | 111.2 | 113 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 394.5 | 394.2 |
Accumulated Amortization | (146.6) | (139.7) |
Net Carrying Amount | 247.9 | 254.5 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 34.2 | 33.9 |
Accumulated Amortization | (19.5) | (18.2) |
Net Carrying Amount | 14.7 | 15.7 |
Proprietary Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 172.5 | 172.5 |
Accumulated Amortization | (104.5) | (100) |
Net Carrying Amount | 68 | 72.5 |
Proprietary Formula | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 29.2 | 29.2 |
Accumulated Amortization | (10.3) | (10) |
Net Carrying Amount | $ 18.9 | $ 19.2 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 | Jul. 01, 2020 |
Debt Instrument [Line Items] | |||
Capital lease obligations | $ 49.7 | $ 32 | |
Long-term Debt and Lease Obligation | 3,346.1 | 3,376.2 | |
Less current portion | (12.9) | (12.3) | |
Less unamortized debt premium and debt issuance fees | (29.9) | (31.8) | |
Total long-term debt | 3,303.3 | 3,332.1 | |
Secured Debt | Senior Secured Term Loan Facility due 2027 | |||
Debt Instrument [Line Items] | |||
Total long-term debt, including current maturities | $ 904 | 982 | |
Stated interest rate of debt | 0.25% | ||
Face amount of debt | $ 3 | ||
Senior Notes | 4.625% Senior Notes due 2026 | |||
Debt Instrument [Line Items] | |||
Total long-term debt, including current maturities | 791.3 | 791.3 | |
Senior Notes | 6.500% Senior Notes due 2027 | |||
Debt Instrument [Line Items] | |||
Total long-term debt, including current maturities | 300 | 300 | |
Senior Notes | Senior Notes, 4.375%, Due 2029 | |||
Debt Instrument [Line Items] | |||
Total long-term debt, including current maturities | $ 583.7 | 583.7 | |
Stated interest rate of debt | 4.375% | ||
Senior Notes | Senior Notes, 4.750%, Due 2028 | |||
Debt Instrument [Line Items] | |||
Stated interest rate of debt | 475% | ||
Senior Notes | 3.50% Senior Notes due 2029 | |||
Debt Instrument [Line Items] | |||
Total long-term debt, including current maturities | $ 717.4 | $ 687.2 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||||||
Feb. 06, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 22, 2024 | Sep. 30, 2023 | Feb. 22, 2023 | Jan. 22, 2021 | Jul. 01, 2020 | |
Debt Instrument [Line Items] | ||||||||
Loss/(gain) on extinguishment of debt | $ 500,000 | $ (2,900,000) | ||||||
Short term borrowing interest rate | 7.70% | |||||||
Notes payable | $ 2,200,000 | $ 8,200,000 | ||||||
Maturities of long term debt in five years | 583,700,000 | |||||||
Scenario, Forecast | ||||||||
Debt Instrument [Line Items] | ||||||||
Notional value | $ 100,000,000 | |||||||
Interest Rate Contracts | ||||||||
Debt Instrument [Line Items] | ||||||||
Notional value | 700,000,000 | $ 700,000,000 | ||||||
Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Premiums paid on extinguishment of debt | 21,600,000 | |||||||
Write-off of deferred financing fees | $ 300,000 | |||||||
Senior Secured Term Loan Facility due 2027 | Secured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate of debt | 0.25% | |||||||
Face amount of debt | $ 3,000,000 | |||||||
Long-term debt | 904,000,000 | 982,000,000 | ||||||
Senior Notes, 4.750%, Due 2028 | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate of debt | 475% | |||||||
Extinguishment of debt, amount | 16,300,000 | |||||||
4.625% Senior Notes due 2026 | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 791,300,000 | 791,300,000 | ||||||
Senior Secured Term Loan B Facility due 2027 | Secured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Premiums paid on extinguishment of debt | $ 75,000,000 | 25,000,000 | ||||||
Write-off of deferred financing fees | $ 200,000 | |||||||
Senior Secured Term Loan B Facility due 2027 | Secured Debt | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Premiums paid on extinguishment of debt | $ 55,000,000 | |||||||
Senior Notes, 4.375%, Due 2029 | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate of debt | 4.375% | |||||||
Extinguishment of debt, amount | $ 8,700,000 | |||||||
Long-term debt | 583,700,000 | 583,700,000 | ||||||
6.500% Senior Notes due 2027 | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 300,000,000 | 300,000,000 | ||||||
Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Amount available remaining | 492,400,000 | |||||||
Letter of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding letters of credit | 7,600,000 | |||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Interest Rate Contracts | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed interest rate | 1.042% | |||||||
Reported Value Measurement | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Fair Value Amount | $ 2,392,400,000 | $ 2,362,200,000 |
Debt - Long-term Debt and Capit
Debt - Long-term Debt and Capital Lease Maturities (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
Maturities of long term debt in one year | $ 12 |
Maturities of long term debt in two years | 12 |
Maturities of long term debt in three years | 12 |
Maturities of long term debt in four years | 1,168 |
Maturities of long term debt in five years | 583.7 |
Maturities of long term debt thereafter | 1,508.7 |
Total long-term debt payments due | $ 3,296.4 |
Pension Plans - Schedule of Net
Pension Plans - Schedule of Net Benefit Costs (Details) - Pension Plan - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 0 | $ 0 |
Interest cost | 3.6 | 5.1 |
Expected return on plan assets | (3.3) | (5.2) |
Amortization of unrecognized net losses | 0.5 | 0.6 |
Net periodic cost | 0.8 | 0.5 |
International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0.1 | 0.1 |
Interest cost | 0.8 | 0.8 |
Expected return on plan assets | (0.8) | (0.7) |
Amortization of unrecognized net losses | 0.2 | 0.1 |
Net periodic cost | $ 0.3 | $ 0.3 |
Financial Instruments and Ris_3
Financial Instruments and Risk Management - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||||
Dec. 31, 2023 USD ($) derivative_instrument Contract | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 22, 2024 USD ($) | Sep. 30, 2023 USD ($) | Feb. 22, 2023 | Jan. 22, 2021 USD ($) | |
Derivative [Line Items] | |||||||
Unrecognized pre-tax loss | $ 59,200,000 | $ (79,800,000) | |||||
Portion or pre-tax gain included in AOCI expected to be included in earnings | (3,300,000) | ||||||
Gain (Loss) Recognized in Income | 1,000,000 | $ 0 | |||||
Scenario, Forecast | |||||||
Derivative [Line Items] | |||||||
Notional value | $ 100,000,000 | ||||||
Interest Rate Contracts | |||||||
Derivative [Line Items] | |||||||
Notional value | 700,000,000 | $ 700,000,000 | |||||
Interest Rate Contracts | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||||
Derivative [Line Items] | |||||||
Fixed interest rate | 1.042% | ||||||
Line of Credit | Senior Secured Term Loan B Facility, net of discount, due 2022 | |||||||
Derivative [Line Items] | |||||||
Face amount of debt | 904,000,000 | ||||||
Estimate of Fair Value | |||||||
Derivative [Line Items] | |||||||
Fair market value of fixed rate long-term debt | 2,172,200,000 | $ 2,000,900,000 | |||||
Reported Value Measurement | |||||||
Derivative [Line Items] | |||||||
Fair market value of fixed rate long-term debt | 2,392,400,000 | 2,362,200,000 | |||||
Designated as Hedging Instrument | Cash Flow Hedging | |||||||
Derivative [Line Items] | |||||||
Derivatives - Foreign Currency contracts | 56,200,000 | 82,400,000 | |||||
Designated as Hedging Instrument | Cash Flow Hedging | Zinc contracts | |||||||
Derivative [Line Items] | |||||||
Derivatives - Foreign Currency contracts | $ 700,000 | (700,000) | |||||
Derivative, Number of Open Contracts | Contract | 18 | ||||||
Notional value | $ 34,000,000 | ||||||
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency contracts | |||||||
Derivative [Line Items] | |||||||
Derivatives - Foreign Currency contracts | (3,700,000) | 3,300,000 | |||||
Notional value | $ 160,000,000 | ||||||
Number of open contracts | derivative_instrument | 68 | ||||||
Not Designated as Hedging Instrument | Foreign currency contracts | |||||||
Derivative [Line Items] | |||||||
Derivatives - Foreign Currency contracts | $ 2,100,000 | $ (1,300,000) | |||||
Gain (Loss) Recognized in Income | 3,200,000 | $ 500,000 | |||||
Not Designated as Hedging Instrument | Foreign currency contracts | |||||||
Derivative [Line Items] | |||||||
Notional value | $ 151,000,000 | ||||||
Number of open contracts | derivative_instrument | 8 |
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 | 3 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives - Foreign Currency contracts | $ 56.2 | $ 82.4 | |
(Loss)/Gain Recognized in OCI | (20.5) | $ (5.7) | |
Loss Reclassified From OCI into Income(Effective Portion) | 5.7 | 12.5 | |
Foreign currency contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives - Foreign Currency contracts | (3.7) | 3.3 | |
(Loss)/Gain Recognized in OCI | (6.1) | (9.2) | |
Loss Reclassified From OCI into Income(Effective Portion) | 0.9 | 6.5 | |
Interest rate swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives - Foreign Currency contracts | 59.2 | 79.8 | |
(Loss)/Gain Recognized in OCI | (12.6) | 0 | |
Loss Reclassified From OCI into Income(Effective Portion) | 8 | 4.9 | |
Zinc contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives - Foreign Currency contracts | 0.7 | $ (0.7) | |
(Loss)/Gain Recognized in OCI | (1.8) | 3.5 | |
Loss Reclassified From OCI into Income(Effective Portion) | $ (3.2) | $ 1.1 |
Financial Instruments and Ris_5
Financial Instruments and Risk Management - Derivative Instruments, Gain (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | $ 1 | $ 0 | |
Not Designated as Hedging Instrument | Foreign currency contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Estimated Fair Value Liability | 2.1 | $ (1.3) | |
Gain (Loss) Recognized in Income | $ 3.2 | $ 0.5 |
Financial Instruments and Ris_6
Financial Instruments and Risk Management - Offsetting Assets and Liabilities (Details) - Foreign currency contracts - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 |
Derivatives, Fair Value [Line Items] | ||
Gross amounts of recognized assets | $ 2.4 | $ 4.4 |
Gross amounts offset in the Balance Sheet | (0.3) | (1) |
Net amounts of assets presented in the Balance Sheet | 2.1 | 3.4 |
Gross amounts of recognized liabilities | (4) | (2.4) |
Gross amounts offset in the Balance Sheet | (0.3) | (1) |
Net amounts of liabilities presented in the Balance Sheet | $ (3.7) | $ (1.4) |
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 | Dec. 31, 2023 | Sep. 30, 2023 |
Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation | $ (22.7) | $ (21) |
Net Assets at estimated fair value | 35.6 | 60.1 |
Foreign currency contracts | Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives - Foreign Currency contracts | 2.1 | (1.3) |
Foreign currency contracts | Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives - Foreign Currency contracts | (3.7) | 3.3 |
Foreign currency contracts | Level 2 | Fair Value, Measurements, Recurring | Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives - Foreign Currency contracts | 2.1 | (1.3) |
Derivatives - Interest Rate Swap | Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives - Foreign Currency contracts | 59.2 | 79.8 |
Commodity contract | Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives - Foreign Currency contracts | 0.7 | (0.7) |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Percentage Bearing Fixed Interest, Fair Value Amount | $ 2,172.2 | $ 2,000.9 |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Income (Loss) (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2023 USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance at September 30, 2023 | $ (137.7) |
OCI before reclassifications | (17.9) |
Reclassifications to earnings | (3.7) |
Balance at December 31, 2022 | (159.3) |
Foreign Currency Translation Adjustments | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance at September 30, 2023 | (89.7) |
OCI before reclassifications | (1.1) |
Reclassifications to earnings | 0 |
Balance at December 31, 2022 | (90.8) |
Pension Activity | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance at September 30, 2023 | (110.3) |
OCI before reclassifications | (1.5) |
Reclassifications to earnings | 0.6 |
Balance at December 31, 2022 | (111.2) |
Foreign Currency Contracts | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance at September 30, 2023 | 2.1 |
OCI before reclassifications | (4.6) |
Reclassifications to earnings | (0.6) |
Balance at December 31, 2022 | (3.1) |
Zinc contracts | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance at September 30, 2023 | (0.5) |
OCI before reclassifications | (1.3) |
Reclassifications to earnings | 2.4 |
Balance at December 31, 2022 | 0.6 |
Interest Rate Contracts | Foreign Currency Contracts | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance at September 30, 2023 | 60.7 |
OCI before reclassifications | (9.4) |
Reclassifications to earnings | (6.1) |
Balance at December 31, 2022 | $ 45.2 |
Reclassification out of Accumul
Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total Other items, net | $ (19) | $ 1.4 |
Interest expense | 40.7 | 42.9 |
Cost of products sold | 449.6 | 466.8 |
Income tax expense | 7.5 | 13.3 |
Net earnings | 1.9 | 49 |
Amount Reclassified from AOCI | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net earnings | (3.7) | (8.7) |
Gains and losses on cash flow hedges | Amount Reclassified from AOCI | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total Other items, net | (0.9) | (6.5) |
Interest expense | (8) | (4.9) |
Cost of products sold | 3.2 | (1.1) |
Earnings before income taxes | (5.7) | (12.5) |
Income tax expense | 1.4 | 3.2 |
Net earnings | (4.3) | (9.3) |
Amortization of defined benefit pension items | Amount Reclassified from AOCI | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Actuarial loss | 0.7 | 0.7 |
Income tax expense | (0.1) | (0.1) |
Net earnings | $ 0.6 | $ 0.6 |
Supplemental Financial Statem_3
Supplemental Financial Statement Information (Supplemental Statement of Income Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financial Statement Related Disclosures [Line Items] | ||
Interest income | $ (5.6) | $ (0.2) |
Foreign currency exchange gain (loss) | 23.7 | (1) |
Pension cost other than service costs | 1 | 0.7 |
Transition services agreement income | (1) | 0 |
Other | 0.9 | (0.9) |
Total Other items, net | 19 | $ (1.4) |
ARGENTINA | ||
Financial Statement Related Disclosures [Line Items] | ||
Foreign currency exchange gain (loss) | $ 21 |
Supplemental Financial Statem_4
Supplemental Financial Statement Information (Supplemental Balance Sheet Information) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 |
Inventories | ||
Raw materials and supplies | $ 140.6 | $ 113.5 |
Work in process | 201.1 | 258.5 |
Finished products | 298.9 | 277.7 |
Total inventories | 640.6 | 649.7 |
Other Current Assets | ||
Miscellaneous receivables | 23.6 | 20.8 |
Prepaid expenses | 117 | 83.6 |
Value added tax collectible from customers | 38.1 | 30.6 |
Other | 33.6 | 37 |
Total other current assets | 212.3 | 172 |
Property, Plant and Equipment | ||
Land | 13 | 12.9 |
Buildings | 137.9 | 135.2 |
Machinery and equipment | 832.8 | 832.9 |
Construction in progress | 80.3 | 69.7 |
Finance Leases | 55.8 | 39.2 |
Total gross property | 1,119.8 | 1,089.9 |
Accumulated depreciation | (735.5) | (726.2) |
Property, plant and equipment, net | 384.3 | 363.7 |
Other Current Liabilities | ||
Accrued advertising, sales promotion and allowances | 19.1 | 12.9 |
Accrued trade allowances | 42.3 | 52.7 |
Accrued freight and warehousing | 32 | 35.1 |
Accrued freight and warehousing | 33.7 | 57.9 |
Accrued salaries, vacations and incentive compensation | 11.4 | 20.5 |
Restructuring and related cost reserve | 15.3 | 17.1 |
Income taxes payable | 52.9 | 36.9 |
Other | 110.7 | 92.5 |
Total other current liabilities | 317.4 | 325.6 |
Other Liabilities | ||
Pensions and other retirement benefits | 55.8 | 55 |
Deferred compensation | 17.6 | 17.4 |
Mandatory transition tax | 12.8 | 12.8 |
Restructuring and related cost reserve | 1.6 | 2.5 |
Other non-current liabilities | 45.4 | 47.8 |
Other liabilities | $ 133.2 | $ 135.5 |
Legal proceedings_contingenci_2
Legal proceedings/contingencies and other obligations (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Loss Contingencies [Line Items] | |
Purchase obligations | $ 7.4 |