SEGMENT INFORMATION

3 Months Ended

Jan. 02, 2022

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

Net sales relating to the segments for the three month periods ended January 2, 2022 and January 3, 2021 are as follows:

	Three Month Periods Ended
(in millions)	January 2, 2022		January 3, 2021
HPC	$	379.7	$	378.5
GPC	302.2		275.4
H&G	75.3		82.3
Net sales	$	757.2	$	736.2

The Chief Operating Decision Maker of the Company 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 compensation costs consist of costs associated with long-term incentive compensation arrangements that generally consist of non-cash, stock-based compensation. During the three month period ended January 3, 2021, compensation costs included incentive bridge awards previously issued due to changes in the Company’s LTIP that allowed for cash based payment upon employee election but do not qualify for shared-based compensation, which were fully vested in November 2020. See Note 16 - Share Based Compensation for further details;

•Restructuring and related charges consist of project costs associated with the restructuring initiatives across the Company's segments. See Note 4 - Restructuring and Related Charges for further details;

•Transaction related charges are attributable to costs from qualifying strategic transaction or business opportunities, including an acquisition or divestiture, whether or not consummated, subsequent integration related project costs, divestiture support and incremental separation costs. See Note 1 – Basis of Presentation & Significant Accounting Policies for further details;

•Unallocated shared costs associated with discontinued operations from certain shared and center-led administrative functions the Company's business units excluded from income from discontinued operations as they are not a direct cost of the discontinued business but a result of indirect allocations, including but not limited to, information technology, human resources, finance and accounting, supply chain, and commercial operations. Amounts attributable to unallocated shared costs would be mitigated through subsequent strategic or restructuring initiatives, TSAs, elimination of extraneous costs, or re-allocations or absorption of existing continuing operations following the completed sale of the discontinued operations. See Note 2 - Divestitures for further details;

•Non-cash purchase accounting inventory adjustments recognized in earnings from continuing operations subsequent to an acquisition;

•Non-cash asset impairments or write-offs realized and recognized in earnings from continuing operations;

•Gains attributable to the Company investment in Energizer common stock during the three month period ended January 3, 2021, which the Company subsequently sold its remaining shares in January 2021. See Note 13 – Fair Value of Financial Instruments for further details;

•Incremental reserves for non-recurring litigation or environmental remediation activity including the proposed settlement on outstanding litigation matters at our H&G division attributable to significant and unusual nonrecurring claims with no previous history or precedent recognized during the three month period ended January 3, 2021 and the subsequent remeasurement during the three month period ended January 2, 2022;

•Incremental costs realized under a three-year tolling agreement entered into with the buyer in consideration with the divestiture of the Coevorden Operations on March 29, 2020, for the continued production of dog and cat food products purchased to support the GPC commercial operations and distribution in Europe; and

•Other adjustments are primarily attributable to (1) incremental fines and penalties realized for delayed shipments following the transition of third-party logistics service provider in GPC during the three month period ended January 2, 2022; and (2) costs associated with Salus as they are not considered a component of the continuing commercial products company;

Segment Adjusted EBITDA for the reportable segments for SBH for the three month periods ended January 2, 2022 and January 3, 2021, are as follows:

	Three Month Periods Ended
SBH (in millions)	January 2, 2022		January 3, 2021
HPC	$	27.4	$	50.9
GPC	38.7		53.6
H&G	(7.3)		10.4
Total Segment Adjusted EBITDA	58.8		114.9
Corporate	9.5		9.0
Interest expense	21.8		23.1
Depreciation and amortization	25.4		27.1
Share and incentive based compensation	5.6		6.9
Restructuring and related charges	17.4		9.0
Transaction related charges	14.9		19.0
Unallocated shared costs	6.8		6.7
Inventory acquisition step-up	—		0.8
Gain on Energizer investment	—		(6.0)
Legal and environmental remediation reserves	(0.5)		6.0
Coevorden tolling related charges	1.5		1.6
Other	2.6		0.1
(Loss) income from continuing operations before income taxes	$	(46.2)	$	11.6

Segment Adjusted EBITDA for reportable segments for SB/RH for the three month periods ended January 2, 2022 and January 3, 2021 are as follows:

	Three Month Periods Ended
SB/RH (in millions)	January 2, 2022		January 3, 2021
HPC	$	27.4	$	50.9
GPC	38.7		53.6
H&G	(7.3)		10.4
Total Segment Adjusted EBITDA	58.8		114.9
Corporate	9.3		8.5
Interest expense	21.8		23.2
Depreciation and amortization	25.4		27.1
Share and incentive based compensation	5.6		6.9
Restructuring and related charges	17.4		9.0
Transaction related charges	14.9		19.0
Unallocated shared costs	6.8		6.7
Inventory acquisition step-up	—		0.8
Gain on Energizer investment	—		(6.0)
Legal and environmental remediation reserves	(0.5)		6.0
Coevorden tolling related charges	1.5		1.6
Other	2.5		—
(Loss) income from continuing operations before income taxes	$	(45.9)	$	12.1