The Company identifies its segments based upon the internal organization that is used by management for making operating decisions and assessing performance as the source of its reportable segments. As a result of the GBL and GAC divestitures, and changes to the Company’s plan to sell its HPC division, the way management views its business activities and the reportable segments changed. The Company had historically recognized GBL and HPC as components to its Global Batteries and Appliances (GBA) reportable segment. Effective December 29, 2017, the Company approved a plan to sell its GBA segment and classified it as held for sale and excluded it from segment reporting until November 2018, when the decision was made to change its plan to sell HPC and recognize it as a component of continuing operations. See Note 3 – Divestitures for further details on GBL and GAC divestitures. HPC has been recognized as a component of continuing operations and as a separate operating and reportable segment.

The Company manages its continuing operations in four vertically integrated, product-focused reporting segments: (i) HHI, which consists of the Company’s worldwide hardware, security and plumbing business; (ii) GPC, which consists of the Company’s worldwide pet care business; (iii) H&G, which consists of the Company’s home and garden and insect control business and (iv) HPC, which consists of the Company’s worldwide small kitchen and personal care appliances businesses. Global strategic initiatives and financial objectives for each reportable segment are determined at the corporate level. Each segment is responsible for implementing defined strategic initiatives and achieving certain financial objectives and has a president or general manager responsible for the sales and marketing initiatives and financial results for product lines within the segment. Net sales relating to the segments for the years ended September 30, 2019, 2018 and 2017 are as follows:

The Chief Operating Decision Maker uses Adjusted EBITDA as the primary operating metric in evaluating the business and making operating decisions. EBITDA is calculated by excluding the Company’s income tax expense, interest expense, depreciation expense and amortization expense (from intangible assets) from net income. Adjusted EBITDA further excludes:

Stock based and other incentive compensation costs associated with long-term compensation arrangements and other equity compensation based upon achievement of long-term performance metrics; and generally consist of non-cash, stock-based compensation. During the year ending September 30, 2019, the Company issued certain incentive bridge awards due to changes in the Company’s long-term compensation plans that allow for cash based payment upon employee election which has been included in the adjustment and does not qualify as shared-based compensation. See Note 18 - Share Based Compensation for further discussion;

Restructuring and related charges, which consist of project costs associated with restructuring initiatives across the segments. See Note 5 - Restructuring and Related Charges for further details;

Transaction related charges consist of (1) transaction costs from qualifying acquisition transactions during the period, or subsequent integration related project costs directly associated with an acquired business; (2) post-divestiture separation costs consisting of incremental costs incurred by the continuing operations of the Company after completion of the GBL and GAC divestitures to facilitate separation of shared operations, platforms and personnel transferred as part of the divestitures and exiting of TSAs and reverse TSAs with Energizer; (3) divestiture related transaction costs that are recognized in continuing operations due to the change in plan to cease marketing and selling of the HPC business. See Note 2 – Significant Accounting Policies and Practices for further details;

Non-cash asset impairments or write-offs realized and recognized in earnings from continuing operations (when applicable);

Non-cash purchase accounting inventory adjustments recognized in earnings from continuing operations after an acquisition (when applicable);

Unrealized gains and losses attributable to the Company’s investment in Energizer common stock during the year ended September 30, 2019, acquired as part of consideration received from the Company’s sale and divestiture of GAC to Energizer. See Note 3 – Divestitures and Note 7 – Fair Value of Financial Instruments for further discussion;

Foreign currency gains and losses attributable to multicurrency loans for the year ended September 30, 2019, that were entered into with foreign subsidiaries in exchange for the receipt of divestiture proceeds by the parent company and the distribution of the respective foreign subsidiaries’ net assets as part of the GBL and GAC divestitures. The Company has entered into various hedging arrangements to mitigate the volatility of foreign exchange risk associated with such loans;

Incremental reserves associated with environmental remediation activity of legacy properties and former manufacturing sites assumed by the organization which had previously been exited by the Company and realized during the year ended September 30, 2019 and legal settlement costs associated with retained litigation from the Company’s former GAC operations, realized during the year ended September 30, 2019 after completion of the divestiture. See Note 19 – Commitments and Contingencies for further discussion;

Incremental costs associated with a safety recall in GPC. See Note 19 – Commitments and Contingencies for further discussion;

Incremental costs directly associated with the Spectrum Merger during the years ended September 30, 2018 and 2017. See Note 4 – Acquisitions for further discussion;

Non-recurring HRG net operating costs incurred during the years ended September 30, 2018 and 2017, considered to be redundant or duplicative as a result of the Spectrum Merger and not considered a component of the continuing commercial products company post-merger, including compensation and benefits, directors fees, professional fees, insurance, public company costs, amongst others, and including interest and other non-recurring income that was eliminated following the transaction. See Note 4 – Acquisitions for further discussion;

Legal and litigation costs associated with Salus during the years ended September 30, 2019 and 2018 as it is not considered a component of the continuing commercial products company, but continues to be consolidated by the Company after completion of the Spectrum Merger until the Salus operations can be wholly dissolved and/or deconsolidated; and

Other adjustments primarily consisting of costs attributable to (1) operating margin on H&G sales to GAC discontinued operations during the years ended September 30, 2019 and 2018, respectively, which continued to operate under a supply agreement following the GAC divestiture during the year ended September 30, 2019; (2) expenses and cost recovery for flood damages incurred at Company facilities in Middleton, Wisconsin during the years ended September 30, 2019 and 2018; (3) incremental costs for separation of key executives incurred during the years ended September 30, 2019 and 2018; and (4) certain fines and penalties for delayed shipments following the completion of a GPC distribution center consolidation in EMEA during the year ended September 30, 2019.

NOTE 20 - SEGMENT INFORMATION (continued)

Segment Adjusted EBITDA in relation to the Company’s reportable segments for SBH and SB/RH for the years ended September 30, 2019, 2018 and 2017, is as follows:


SBH (in millions)	2019		2018		2017
HHI	$	253.7	$	254.7	$	254.4
HPC		87.2		119.4		147.8
GPC		142.6		136.7		142.7
H&G		105.5		107.5		133.0
Total Segment Adjusted EBITDA		589.0		618.3		677.9
Corporate		22.0		36.3		39.3
Interest expense		222.1		264.0		310.4
Depreciation and amortization		180.8		125.3		147.3
Share and incentive based compensation		53.7		11.9		54.2
Restructuring and related charges		65.7		75.6		37.5
Transaction related charges		21.8		30.2		17.7
Write-off from impairment of goodwill		116.0		—		—
Write-off from impairment of intangible assets		35.4		20.3		16.3
Unrealized loss on Energizer investment		12.1		—		—
Foreign currency loss on multicurrency divestiture loans		36.2		—		—
Legal and environmental remediation reserves		10.0		—		—
Inventory acquisition step-up		—		0.8		3.3
GPC safety recall		0.7		18.9		35.8
Spectrum merger related transaction charges		—		45.9		7.6
Non-recurring HRG operating costs		—		18.9		32.1
Salus		1.6		1.1		4.0
Other		4.7		4.8		0.3
Loss from operations before income taxes	$	(193.8)	$	(35.7)	$	(27.9)


SB/RH (in millions)	2019		2018		2017
HHI	$	253.7	$	254.7	$	254.4
HPC		87.2		119.4		147.8
GPC		142.6		136.7		142.7
H&G		105.5		107.5		133.0
Total Segment Adjusted EBITDA		589.0		618.3		677.9
Corporate		20.7		35.9		38.6
Interest expense		162.0		167.0		161.8
Depreciation and amortization		180.8		124.6		146.8
Share and incentive based compensation		52.1		8.8		46.2
Restructuring and related charges		65.7		75.6		37.5
Transaction related charges		21.8		30.2		17.7
Write-off from impairment of goodwill		116.0		—		—
Write-off from impairment of intangible assets		35.4		20.3		16.3
Unrealized loss on Energizer investment		12.1		—		—
Foreign currency loss on multicurrency divestiture loans		36.2		—		—
Legal and environmental remediation reserves		10.0		—		—
Inventory acquisition step-up		—		0.8		3.3
GPC safety recall		0.7		18.9		35.8
Other		4.7		6.1		0.3
(Loss) income from operations before income taxes	$	(129.2)	$	130.1	$	173.6

‎

Other financial information relating to the segments of SBH and SB/RH are as follows for the years ended September 30, 2019, 2018 and 2017 and as of September 30, 2019 and 2018:


	SBH						SB/RH

Depreciation and amortization (in millions)	2019		2018		2017		2019		2018		2017
HHI	$	33.5	$	40.0	$	38.3	$	33.5	$	40.0	$	38.3
GPC		48.8		42.3		43.1		48.8		42.3		43.1
H&G		19.3		18.8		17.6		19.3		18.8		17.6
HPC		64.6		8.8		34.8		64.6		8.8		34.8
Total segments		166.2		109.9		133.8		166.2		109.9		133.8
Corporate and shared operations		14.6		15.4		13.5		14.6		14.7		13.0
Total depreciation and amortization	$	180.8	$	125.3	$	147.3	$	180.8	$	124.6	$	146.8


	SBH						SB/RH
Capital expenditures (in millions)	2019		2018		2017		2019		2018		2017
HHI	$	18.0	$	15.6	$	25.5	$	18.0	$	15.6	$	25.5
GPC		16.0		24.6		20.2		16.0		24.6		20.2
H&G		5.9		6.4		6.5		5.9		6.4		6.5
HPC		11.0		14.8		15.3		11.0		14.8		15.3
Total segment capital expenditures		50.9		61.4		67.5		50.9		61.4		67.5
Corporate and shared operations		7.5		14.5		14.3		7.5		14.5		14.3
Total capital expenditures	$	58.4	$	75.9	$	81.8	$	58.4	$	75.9	$	81.8


	SBH				SB/RH
Segment total assets (in millions)	2019		2018		2019		2018
HHI	$	1,611.0	$	1,640.7	$	1,611.0	$	1,640.7
GPC		1,275.4		1,367.6		1,275.4		1,367.6
H&G		538.6		528.4		538.6		528.4
HPC		833.6		970.9		833.6		970.9
Total segment assets		4,258.6		4,507.6		4,258.6		4,507.6
Corporate and shared operations		971.9		888.8		1,032.6		727.2
Total assets	$	5,230.5	$	5,396.4	$	5,291.2	$	5,234.8

Net sales SBH and SB/RH for the years ended September 30, 2019, 2018 and 2017 and long-lived asset information as of September 30, 2019 and 2018 by geographic area are as follows:


	SBH				SB/RH
Long-lived assets - Geographic Disclosure (in millions)	2019		2018		2019		2018
United States	$	308.3	$	345.1	$	308.3	$	345.1
Europe/MEA		83.0		84.3		83.0		84.3
Latin America		19.3		26.7		19.3		26.7
North America - Other		1.1		1.3		1.1		1.3
Asia-Pacific		41.2		42.6		41.2		42.6
Total long-lived assets	$	452.9	$	500.0	$	452.9	$	500.0