Guarantor Statements - SB/RH

3 Months Ended

Dec. 29, 2019

Guarantor Statements - SB/RH [Abstract]

Guarantor Statements - SB/RH

NOTE 21 - GUARANTOR STATEMENTS – SB/RH

SBI with SB/RH as a parent guarantor (collectively, the “Parent”), with SBI’s domestic subsidiaries as subsidiary guarantors, has issued the 5.00% Notes under the 2029 Indenture, 6.125% Notes under the 2024 Indenture, the 5.75% Notes under the 2025 Indenture and the 4.00% Notes under the 2026 Indenture.

The following consolidating financial statements illustrate the components of the consolidated financial statements of SB/RH. The ‘Parent’ consists of the financial statements of SBI as the debt issuer, with SB/RH as a parent guarantor, without consolidated entities. SB/RH financial information is not presented separately as there are no independent assets or operations and is therefore determined not to be material. Investments in subsidiaries are accounted for using the equity method for purposes of illustrating the consolidating presentation. The elimination entries presented herein eliminate investments in subsidiaries and intercompany balances and transactions.

Statement of Financial Position			Guarantor		Nonguarantor
As of December 29, 2019 (in millions)	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Assets
Cash and cash equivalents	$	3.9	$	0.4	$	133.2	$	—	$	137.5
Trade receivables, net		192.3		86.3		231.4		—		510.0
Intercompany receivables		—		2,368.8		915.0		(3,283.8)		—
Other receivables		67.0		5.1		60.1		(1.0)		131.2
Inventories		241.1		196.4		197.1		(6.8)		627.8
Prepaid expenses and other		36.7		5.8		19.5		—		62.0
Current assets of business held for sale		—		—		29.0		—		29.0
Total current assets		541.0		2,662.8		1,585.3		(3,291.6)		1,497.5
Property, plant and equipment, net		190.2		120.2		93.0		—		403.4
Operating lease assets		44.3		14.5		39.7		—		98.5
Long-term intercompany receivables		28.7		23.4		10.3		(62.4)		—
Deferred charges and other		281.7		0.6		46.8		(276.8)		52.3
Investment		269.3		—		—		—		269.3
Goodwill		567.2		543.3		211.0		—		1,321.5
Intangible assets, net		700.5		551.8		220.3		—		1,472.6
Investments in subsidiaries		4,052.1		1,121.0		(2.9)		(5,170.2)		—
Total assets	$	6,675.0	$	5,037.6	$	2,203.5	$	(8,801.0)	$	5,115.1
Liabilities and Shareholder's Equity
Current portion of long-term debt	$	2.3	$	4.9	$	7.0	$	(0.3)	$	13.9
Accounts payable		110.9		76.3		290.9		—		478.1
Intercompany accounts payable		2,662.5		381.1		206.5		(3,250.1)		—
Accrued wages and salaries		21.2		3.3		23.5		—		48.0
Accrued interest		36.7		—		—		—		36.7
Indemnification payable to Energizer		—		—		231.1		—		231.1
Income tax payable		0.9		—		15.8		(1.0)		15.7
Other current liabilities		102.1		16.6		49.2		—		167.9
Current liabilities of business held for sale		—		—		9.3		—		9.3
Total current liabilities		2,936.6		482.2		833.3		(3,251.4)		1,000.7
Long-term debt, net of current portion		2,187.3		51.6		9.8		—		2,248.7
Long-term intercompany debt		12.4		—		83.4		(95.8)		—
Deferred income taxes		86.0		437.4		49.0		(279.2)		293.2
Long-term operating lease liabilities		40.6		11.1		33.9		—		85.6
Other long-term liabilities		31.4		3.1		73.3		—		107.8
Total liabilities		5,294.3		985.4		1,082.7		(3,626.4)		3,736.0
Shareholder's equity:
Other capital		2,138.9		442.0		(749.2)		295.0		2,126.7
Accumulated (deficit) earnings		(509.2)		3,843.0		2,092.9		(5,935.9)		(509.2)
Accumulated other comprehensive loss		(249.0)		(232.8)		(233.5)		466.3		(249.0)
Total shareholder's equity		1,380.7		4,052.2		1,110.2		(5,174.6)		1,368.5
Non-controlling interest		—		—		10.6		—		10.6
Total equity		1,380.7		4,052.2		1,120.8		(5,174.6)		1,379.1
Total liabilities and equity	$	6,675.0	$	5,037.6	$	2,203.5	$	(8,801.0)	$	5,115.1

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NOTE 21 - GUARANTOR STATEMENTS – SB/RH (continued)

Statement of Financial Position			Guarantor		Nonguarantor
As of September 30, 2019 (in millions)	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Assets
Cash and cash equivalents	$	441.2	$	0.4	$	180.3	$	—	$	621.9
Trade receivables, net		92.5		55.2		209.0		—		356.7
Intercompany receivables		—		2,435.5		1,067.5		(3,503.0)		—
Other receivables		68.7		7.4		64.0		—		140.1
Inventories		207.7		156.5		191.5		(7.3)		548.4
Prepaid expenses and other		26.0		4.7		22.8		—		53.5
Total current assets		836.1		2,659.7		1,735.1		(3,510.3)		1,720.6
Property, plant and equipment, net		187.1		121.1		144.7		—		452.9
Long-term intercompany receivables		51.9		37.4		10.2		(99.5)		—
Deferred charges and other		277.8		0.7		49.7		(276.5)		51.7
Investment		230.8		—		—		—		230.8
Goodwill		567.2		543.3		217.6		—		1,328.1
Intangible assets, net		707.2		560.3		239.6		—		1,507.1
Investments in subsidiaries		4,231.2		1,111.2		(2.9)		(5,339.5)		—
Total assets	$	7,089.3	$	5,033.7	$	2,394.0	$	(9,225.8)	$	5,291.2
Liabilities and Shareholder's Equity
Current portion of long-term debt	$	119.7	$	4.7	$	12.7	$	(0.2)	$	136.9
Accounts payable		98.7		65.4		299.7		—		463.8
Intercompany accounts payable		2,873.6		211.2		386.4		(3,471.2)		—
Accrued wages and salaries		38.1		6.5		27.4		—		72.0
Accrued interest		29.3		—		—		—		29.3
Indemnification payable to Energizer		—		—		230.8		—		230.8
Income tax payable		215.7		—		24.8		—		240.5
Other current liabilities		119.6		19.8		43.3		—		182.7
Total current liabilities		3,494.7		307.6		1,025.1		(3,471.4)		1,356.0
Long-term debt, net of current portion		2,076.7		52.8		9.6		—		2,139.1
Long-term intercompany debt		12.3		—		118.8		(131.1)		—
Deferred income taxes		56.5		439.0		55.9		(279.2)		272.2
Other long-term liabilities		35.1		3.1		73.6		—		111.8
Total liabilities		5,675.3		802.5		1,283.0		(3,881.7)		3,879.1
Shareholder's equity:
Other capital		2,124.8		439.2		(750.9)		300.2		2,113.3
Accumulated (deficit) earnings		(437.3)		4,049.0		2,108.4		(6,157.4)		(437.3)
Accumulated other comprehensive loss		(273.5)		(257.0)		(256.1)		513.1		(273.5)
Total shareholder's equity		1,414.0		4,231.2		1,101.4		(5,344.1)		1,402.5
Non-controlling interest		—		—		9.6		—		9.6
Total equity		1,414.0		4,231.2		1,111.0		(5,344.1)		1,412.1
Total liabilities and equity	$	7,089.3	$	5,033.7	$	2,394.0	$	(9,225.8)	$	5,291.2

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NOTE 21 - GUARANTOR STATEMENTS – SB/RH (continued)

Statement of Income			Guarantor		Nonguarantor
Three month period ended December 29, 2019 (in millions)	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Net sales	$	409.7	$	285.6	$	526.7	$	(350.5)	$	871.5
Cost of goods sold		306.0		225.0		412.5		(351.0)		592.5
Restructuring and related charges		0.4		1.5		8.0		—		9.9
Gross profit		103.3		59.1		106.2		0.5		269.1
Selling		54.7		28.1		63.3		—		146.1
General and administrative		46.0		20.8		12.7		—		79.5
Research and development		5.0		2.7		2.2		—		9.9
Restructuring and related charges		15.9		0.2		1.4		—		17.5
Transaction related charges		1.4		0.5		2.2		—		4.1
Write-off from impairment of intangible assets		—		—		24.2		—		24.2
Loss on assets held for sale		—		—		32.8		—		32.8
Total operating expense		123.0		52.3		138.8		—		314.1
Operating (loss) income		(19.7)		6.8		(32.6)		0.5		(45.0)
Interest expense (income)		42.5		(3.8)		(4.0)		(0.1)		34.6
Other non-operating (income) expense, net		(28.2)		7.5		(13.6)		(9.4)		(43.7)
(Loss) income from operations before income taxes		(34.0)		3.1		(15.0)		10.0		(35.9)
Income tax expense (benefit)		3.2		(0.4)		(2.2)		0.3		0.9
Net (loss) income from continuing operations		(37.2)		3.5		(12.8)		9.7		(36.8)
Gain from discontinued operations, net of tax		2.8		—		—		—		2.8
Net (loss) income		(34.4)		3.5		(12.8)		9.7		(34.0)
Net income attributable to non-controlling interest		—		—		0.9		—		0.9
Net (loss) income attributable to controlling interest	$	(34.4)	$	3.5	$	(13.7)	$	9.7	$	(34.9)

Statement of Income			Guarantor		Nonguarantor
Three month period ended December 30, 2018 (in millions)	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Net sales	$	433.7	$	287.2	$	531.9	$	(372.5)	$	880.3
Cost of goods sold		318.8		219.3		408.1		(372.5)		573.7
Restructuring and related charges		—		—		0.9		—		0.9
Gross profit		114.9		67.9		122.9		—		305.7
Selling		61.3		27.3		67.0		—		155.6
General and administrative		67.5		19.1		12.0		(0.7)		97.9
Research and development		5.7		2.4		3.0		—		11.1
Restructuring and related charges		4.2		0.6		3.4		—		8.2
Transaction related charges		4.1		0.7		1.5		—		6.3
Total operating expense		142.8		50.1		86.9		(0.7)		279.1
Operating income		(27.9)		17.8		36.0		0.7		26.6
Interest expense		36.8		5.5		0.9		—		43.2
Other non-operating (income) expense, net		(23.1)		(23.4)		0.6		46.7		0.8
(Loss) income from operations before income taxes		(41.6)		35.7		34.5		(46.0)		(17.4)
Income tax (benefit) expense		(22.1)		13.2		10.9		(0.4)		1.6
Net (loss) income from continuing operations		(19.5)		22.5		23.6		(45.6)		(19.0)
(Loss) Income from discontinued operations, net of tax		(83.8)		(76.4)		2.9		74.1		(83.2)
Net (loss) income		(103.3)		(53.9)		26.5		28.5		(102.2)
Net income attributable to non-controlling interest		—		—		0.2		—		0.2
Net (loss) income attributable to controlling interest	$	(103.3)	$	(53.9)	$	26.3	$	28.5	$	(102.4)

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NOTE 21 - GUARANTOR STATEMENTS – SB/RH (continued)

Statement of Comprehensive Income			Guarantor		Nonguarantor
Three month period ended December 29, 2019 (in millions)	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Net (loss) income	$	(34.4)	$	3.5	$	(12.8)	$	9.7	$	(34.0)
Other comprehensive (loss) income, net of tax:
Foreign currency translation gain		26.6		31.5		30.0		(61.6)		26.5
Unrealized loss on derivative instruments		(6.1)		(6.9)		(6.9)		13.7		(6.2)
Defined benefit pension gain (loss)		3.9		(0.3)		(0.3)		0.7		4.0
Other comprehensive gain		24.4		24.3		22.8		(47.2)		24.3
Comprehensive (loss) income		(10.0)		27.8		10.0		(37.5)		(9.7)
Comprehensive income attributable to non-controlling interest		—		—		0.1		—		0.1
Comprehensive (loss) income attributable to controlling interest	$	(10.0)	$	27.8	$	9.9	$	(37.5)	$	(9.8)

Statement of Comprehensive Income			Guarantor		Nonguarantor
Three month period ended December 30, 2018 (in millions)	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Net (loss) income	$	(103.3)	$	(53.9)	$	26.5	$	28.5	$	(102.2)
Other comprehensive (loss) income, net of tax:
Net unrealized loss on foreign currency translation		(12.0)		(21.5)		(21.2)		42.8		(11.9)
Unrealized (loss) gain on hedging derivative instruments		(0.6)		3.0		3.1		(6.1)		(0.6)
Defined benefit pension gain		1.5		1.1		1.1		(2.3)		1.4
Other comprehensive loss		(11.1)		(17.4)		(17.0)		34.4		(11.1)
Comprehensive (loss) income		(114.4)		(71.3)		9.5		62.9		(113.3)
Comprehensive income attributable to non-controlling interest		—		—		—		—		—
Comprehensive (loss) income attributable to controlling interest	$	(114.4)	$	(71.3)	$	9.5	$	62.9	$	(113.3)

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NOTE 21 - GUARANTOR STATEMENTS – SB/RH (continued)

Statement of Cash Flows			Guarantor		Nonguarantor
Three month period ended December 29, 2019 (in millions)	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Net cash (used) provided by operating activities	$	(319.1)	$	42.2	$	613.9	$	(744.2)	$	(407.2)
Cash flows from investing activities		.
Purchases of property, plant and equipment		(12.5)		(3.6)		(2.6)		—		(18.7)
Net cash used by investing activities		(12.5)		(3.6)		(2.6)		—		(18.7)
Cash flows from financing activities
Proceeds from issuance of debt		103.0		—		—		—		103.0
Payment of debt		(119.4)		(1.2)		(6.9)		—		(127.5)
Payment of debt issuance costs		(0.8)		—		—		—		(0.8)
Payment of cash dividends to parent		(36.7)		—		—		—		(36.7)
Advances related to intercompany transactions		(51.8)		(37.4)		(655.0)		744.2		—
Net cash used by financing activities		(105.7)		(38.6)		(661.9)		744.2		(62.0)
Effect of exchange rate changes on cash and cash equivalents		—		—		3.5		—		3.5
Net decrease in cash, cash equivalents and restricted cash		(437.3)		—		(47.1)		—		(484.4)
Cash, cash equivalents and restricted cash, beginning of period		441.2		0.4		180.3		—		621.9
Cash, cash equivalents and restricted cash, end of period	$	3.9	$	0.4	$	133.2	$	—	$	137.5

Statement of Cash Flows			Guarantor		Nonguarantor
Three month period ended December 30, 2018 (in millions)	Parent		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Net cash (used) provided by operating activities from continuing operations	$	(308.0)	$	3.8	$	1,378.2	$	(1,375.1)	$	(301.1)
Net cash provided (used) by operating activities from discontinued operations		2.2		2.3		2.9		(35.7)		(28.3)
Net cash (used) provided by operating activities		(305.8)		6.1		1,381.1		(1,410.8)		(329.4)
Cash flows from investing activities
Purchases of property, plant and equipment		(6.6)		(3.4)		(3.5)		—		(13.5)
Proceeds from sales of property, plant and equipment		—		—		0.1		—		0.1
Net cash used by investing activities from continuing operations		(6.6)		(3.4)		(3.4)		—		(13.4)
Net cash used by investing activities from discontinued operations		(1.1)		(2.3)		(1.7)		—		(5.1)
Net cash used by investing activities		(7.7)		(5.7)		(5.1)		—		(18.5)
Cash flows from financing activities
Proceeds from issuance of debt		114.0		—		10.3		—		124.3
Payment of debt		(35.7)		—		(9.9)		—		(45.6)
Payment of cash dividends to parent		(30.4)		—		—		—		(30.4)
Advances related to intercompany transactions		(4.4)		(0.3)		(1,406.1)		1,410.8		—
Net cash provided (used) by financing activities from continuing operations		43.5		(0.3)		(1,405.7)		1,410.8		48.3
Net cash used by financing activities from discontinued operations		(1.1)		—		(1.2)		—		(2.3)
Net cash provided (used) by financing activities		42.4		(0.3)		(1,406.9)		1,410.8		46.0
Effect of exchange rate changes on cash and cash equivalents		—		—		(2.9)		—		(2.9)
Net (decrease) increase in cash, cash equivalents and restricted cash		(271.1)		0.1		(33.8)		—		(304.8)
Cash, cash equivalents and restricted cash, beginning of period		285.5		1.8		227.0		—		514.3
Cash, cash equivalents and restricted cash, end of period	$	14.4	$	1.9	$	193.2	$	—	$	209.5