QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I. R. S. Employer Identification No.) | |||||||||||||
(Registrant’s telephone number, including area code) | ||||||||||||||
(Address of principal executive offices and zip code) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | ||||||||||||
Non-accelerated filer | ☐ | (Do not check if a smaller reporting company) | Smaller reporting company | |||||||||||
Emerging growth company |
PART I. | FINANCIAL INFORMATION | |||||||
Item 1. | Financial Statements (Unaudited). | |||||||
Condensed Consolidated Statements of Earnings and Comprehensive Income for the three months ended December 31, 2020 and 2019. | ||||||||
Condensed Consolidated Balance Sheets as of December 31, 2020 and September 30, 2020. | ||||||||
Condensed Consolidated Statements of Cash Flows for the three months ended December 31, 2020 and 2019. | ||||||||
Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three months ended December 31, 2020 and 2019. | ||||||||
Notes to Condensed Consolidated Financial Statements. | ||||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. | |||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk. | |||||||
Item 4. | Controls and Procedures. | |||||||
PART II. | OTHER INFORMATION | |||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. | |||||||
Item 6. | Exhibits. | |||||||
SIGNATURE |
Three Months Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Net sales | $ | $ | |||||||||
Cost of products sold | |||||||||||
Gross profit | |||||||||||
Selling, general and administrative expense | |||||||||||
Advertising and sales promotion expense | |||||||||||
Research and development expense | |||||||||||
Restructuring charges | |||||||||||
Operating income | |||||||||||
Gain on sale of Infant and Pet Care business | ( | ||||||||||
Interest expense associated with debt | |||||||||||
Other income, net | ( | ( | |||||||||
Earnings before income taxes | |||||||||||
Income tax provision | |||||||||||
Net earnings | $ | $ | |||||||||
Earnings per share: | |||||||||||
Basic net earnings per share | $ | $ | |||||||||
Diluted net earnings per share | $ | $ | |||||||||
Statements of Comprehensive Income: | |||||||||||
Net earnings | $ | $ | |||||||||
Other comprehensive income, net of tax | |||||||||||
Foreign currency translation adjustments | |||||||||||
Pension and postretirement activity, net of tax of $(0.8) and $(0.6) | ( | ( | |||||||||
Deferred loss on hedging activity, net of tax of $(0.8) and $(0.6) | ( | ( | |||||||||
Total other comprehensive income, net of tax | |||||||||||
Total comprehensive income | $ | $ |
December 31, 2020 | September 30, 2020 | ||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Trade receivables, less allowance for doubtful accounts of $7.6 and $8.2 | |||||||||||
Inventories | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Goodwill | |||||||||||
Other intangible assets, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Shareholders’ Equity | |||||||||||
Current liabilities | |||||||||||
Notes payable | |||||||||||
Accounts payable | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Deferred income tax liabilities | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Shareholders’ equity | |||||||||||
Preferred shares, $0.01 par value, 10,000,000 authorized; none issued or outstanding | |||||||||||
Common shares, $0.01 par value, 300,000,000 authorized; 65,251,989 issued; 54,275,037 and 54,355,183 outstanding | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Common shares in treasury at cost, 10,976,952 and 10,896,806 | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total shareholders’ equity | |||||||||||
Total liabilities and shareholders’ equity | $ | $ |
Three Months Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Cash Flow from Operating Activities | |||||||||||
Net earnings | $ | $ | |||||||||
Depreciation and amortization | |||||||||||
Share-based compensation expense | |||||||||||
Loss on sale of assets | |||||||||||
Gain on sale of Infant and Pet Care business | ( | ||||||||||
Deferred compensation payments | ( | ( | |||||||||
Deferred income taxes | ( | ||||||||||
Other, net | |||||||||||
Changes in operating assets and liabilities | ( | ( | |||||||||
Net cash used by operating activities | ( | ( | |||||||||
Cash Flow from Investing Activities | |||||||||||
Capital expenditures | ( | ( | |||||||||
Proceeds from sale of Infant and Pet Care business | |||||||||||
Acquisition of Cremo | ( | ||||||||||
Collection of deferred purchase price on accounts receivable sold | |||||||||||
Other, net | ( | ( | |||||||||
Net cash (used by) from investing activities | ( | ||||||||||
Cash Flow from Financing Activities | |||||||||||
Cash proceeds from debt with original maturities greater than 90 days | |||||||||||
Cash payments on debt with original maturities greater than 90 days | ( | ||||||||||
Net increase (decrease) in debt with original maturities of 90 days or less | ( | ||||||||||
Repurchase of shares | ( | ||||||||||
Net financing inflow (outflow) from the Accounts Receivable Facility | ( | ||||||||||
Employee shares withheld for taxes | ( | ( | |||||||||
Other, net | ( | ||||||||||
Net cash used by financing activities | ( | ( | |||||||||
Effect of exchange rate changes on cash | |||||||||||
Net decrease in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents, beginning of period | |||||||||||
Cash and cash equivalents, end of period | $ | $ |
Common Shares | Treasury Shares | ||||||||||||||||||||||||||||||||||||||||||||||
Number | Par Value | Number | Amount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | ( | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Pension and postretirement activity | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Deferred loss on hedging activity | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Dividends declared to common shareholders ($0.15 per share) | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Repurchase of shares | — | — | ( | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Activity under share plans | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | ( | $ | ( | $ | $ | $ | ( | $ |
Common Shares | Treasury Shares | ||||||||||||||||||||||||||||||||||||||||||||||
Number | Par Value | Number | Amount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | ( | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Pension and postretirement activity | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Deferred loss on hedging activity | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Activity under share plans | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | ( | $ | ( | $ | $ | $ | ( | $ |
Three Months Ended December 31, 2020 | |||||||||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | Corporate | Total | |||||||||||||||||||||||||
Project Fuel | |||||||||||||||||||||||||||||
Severance and related benefit costs | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Asset impairment and accelerated depreciation | |||||||||||||||||||||||||||||
Consulting, project implementation and management, and other exit costs | |||||||||||||||||||||||||||||
Total Restructuring | $ | $ | $ | $ | $ |
Three Months Ended December 31, 2019 | |||||||||||||||||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | Corporate | Total | |||||||||||||||||||||||||
Project Fuel | |||||||||||||||||||||||||||||
Severance and related benefit costs | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Asset impairment and accelerated depreciation | |||||||||||||||||||||||||||||
Consulting, project implementation and management, and other exit costs | |||||||||||||||||||||||||||||
Total Restructuring | $ | $ | $ | $ | $ |
Utilized | |||||||||||||||||||||||||||||||||||
October 1, 2020 | Charge to Income | Other (1) | Cash | Non-Cash | December 31, 2020 | ||||||||||||||||||||||||||||||
Restructuring | |||||||||||||||||||||||||||||||||||
Severance and related benefit costs | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Asset impairment and accelerated depreciation | ( | ||||||||||||||||||||||||||||||||||
Consulting, project implementation and management, and other exit costs | ( | ||||||||||||||||||||||||||||||||||
Total Restructuring | $ | $ | $ | $ | ( | $ | ( | $ |
Three Months Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Basic weighted-average shares outstanding | |||||||||||
Effect of dilutive securities: | |||||||||||
RSE awards | |||||||||||
Total dilutive securities | |||||||||||
Diluted weighted-average shares outstanding |
Wet Shave | Sun and Skin Care | Feminine Care | Total | ||||||||||||||||||||
Gross balance at October 1, 2020 | $ | $ | $ | $ | |||||||||||||||||||
Accumulated goodwill impairment | ( | ( | ( | ||||||||||||||||||||
Net balance at October 1, 2020 | $ | $ | $ | $ | |||||||||||||||||||
Changes in the three-month period ended December 31, 2020 | |||||||||||||||||||||||
Cremo acquisition measurement period adjustment | |||||||||||||||||||||||
Cumulative translation adjustment | |||||||||||||||||||||||
Gross balance at December 31, 2020 | $ | $ | $ | $ | |||||||||||||||||||
Accumulated goodwill impairment | ( | ( | ( | ||||||||||||||||||||
Net balance at December 31, 2020 | $ | $ | $ | $ |
December 31, 2020 | September 30, 2020 | ||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||
Trade names and brands | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Technology and patents | |||||||||||||||||||||||||||||||||||
Customer related and other | |||||||||||||||||||||||||||||||||||
Total amortizable intangible assets | $ | $ | $ | $ | $ | $ |
December 31, 2020 | September 30, 2020 | ||||||||||
Inventories | |||||||||||
Raw materials and supplies | $ | $ | |||||||||
Work in process | |||||||||||
Finished products | |||||||||||
Total inventories | $ | $ | |||||||||
Other Current Assets | |||||||||||
Miscellaneous receivables | $ | $ | |||||||||
Inventory returns receivable | |||||||||||
Prepaid expenses | |||||||||||
Value added tax collectible from customers | |||||||||||
Income taxes receivable | |||||||||||
Other | |||||||||||
Total other current assets | $ | $ | |||||||||
Property, Plant and Equipment | |||||||||||
Land | $ | $ | |||||||||
Buildings | |||||||||||
Machinery and equipment | |||||||||||
Capitalized software costs | |||||||||||
Construction in progress | |||||||||||
Total gross property, plant and equipment | |||||||||||
Accumulated depreciation and amortization | ( | ( | |||||||||
Total property, plant and equipment, net | $ | $ | |||||||||
Other Current Liabilities | |||||||||||
Accrued advertising, sales promotion and allowances | $ | $ | |||||||||
Accrued trade allowances | |||||||||||
Accrued salaries, vacations and incentive compensation | |||||||||||
Income taxes payable | |||||||||||
Returns reserve | |||||||||||
Restructuring reserve | |||||||||||
Value added tax payable | |||||||||||
Deferred compensation | |||||||||||
Short term lease obligation | |||||||||||
Customer advance payments | |||||||||||
Dividends payable | |||||||||||
Other | |||||||||||
Total other current liabilities | $ | $ | |||||||||
Other Liabilities | |||||||||||
Pensions and other retirement benefits | $ | $ | |||||||||
Deferred compensation | |||||||||||
Long term lease obligation | |||||||||||
Other non-current liabilities | |||||||||||
Total other liabilities | $ | $ |
December 31, 2020 | September 30, 2020 | |||||||||||||
Assets | Classification | |||||||||||||
Right of use assets | Other assets | $ | $ | |||||||||||
Liabilities | ||||||||||||||
Current lease liabilities | Other current liabilities | $ | $ | |||||||||||
Long-term lease liabilities | Other liabilities | |||||||||||||
Total lease liabilities | $ | $ | ||||||||||||
Other information | ||||||||||||||
Weighted-average remaining lease term (years) | ||||||||||||||
Weighted-average incremental borrowing rate | % | % |
Three Months Ended December 31, 2020 | Three Months Ended December 31, 2019 | ||||||||||
Statement of Earnings | |||||||||||
Lease cost (1) | $ | $ | |||||||||
Other information | |||||||||||
Leased assets obtained in exchange for new lease liabilities | $ | $ | |||||||||
Cash paid for amounts included in the measurement of lease liabilities | $ | $ |
Lease liability repayments | December 31, 2020 | ||||
Remainder of fiscal 2021 | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 and thereafter | |||||
Total future minimum lease commitments | |||||
Less: Imputed interest | ( | ||||
Present value of lease liabilities | $ |
December 31, 2020 | September 30, 2020 | ||||||||||
Senior notes, fixed interest rate of 4.7%, due 2022 | |||||||||||
Senior notes, fixed interest rate of 5.5%, due 2028 | |||||||||||
Total long-term debt, including current maturities | |||||||||||
Less unamortized debt issuance costs and discount (1) (2) | |||||||||||
Total long-term debt | $ | $ |
Three Months Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Service cost | $ | $ | |||||||||
Interest cost | |||||||||||
Expected return on plan assets | ( | ( | |||||||||
Recognized net actuarial loss | |||||||||||
Settlement loss recognized | |||||||||||
Net periodic cost | $ | $ |
Foreign Currency Translation Adjustments | Pension and Post-retirement Activity | Hedging Activity | Total | ||||||||||||||||||||
Balance at October 1, 2020 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
OCI before reclassifications (1) | ( | ( | |||||||||||||||||||||
Reclassifications to earnings | |||||||||||||||||||||||
Balance at December 31, 2020 | $ | ( | $ | ( | $ | ( | $ | ( |
Foreign Currency Translation Adjustments | Pension and Post-retirement Activity | Hedging Activity | Total | ||||||||||||||||||||
Balance at October 1, 2019 | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
OCI before reclassifications (1) | ( | ( | |||||||||||||||||||||
Reclassifications to earnings | ( | ||||||||||||||||||||||
Balance at December 31, 2019 | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended December 31, | Affected Line Item in the Condensed Consolidated Statements of Earnings | ||||||||||||||||
Details of AOCI Components | 2020 | 2019 | |||||||||||||||
Gain / (Loss) on cash flow hedges | |||||||||||||||||
Foreign exchange contracts | $ | ( | $ | Other income, net | |||||||||||||
( | |||||||||||||||||
( | Income tax provision | ||||||||||||||||
( | |||||||||||||||||
Amortization of defined benefit pension and postretirement items | |||||||||||||||||
Actuarial losses | $ | ( | $ | ( | (1) | ||||||||||||
Settlements | ( | (1) | |||||||||||||||
( | ( | ||||||||||||||||
( | ( | Income tax provision | |||||||||||||||
( | ( | ||||||||||||||||
Total reclassifications for the period | $ | ( | $ | ( |
Fair Value of Asset (Liability) (1) | |||||||||||
December 31, 2020 | September 30, 2020 | ||||||||||
Derivatives designated as cash flow hedging relationships: | |||||||||||
Foreign currency contracts | $ | ( | $ | ( | |||||||
Derivatives not designated as cash flow hedging relationships: | |||||||||||
Foreign currency contracts | $ | ( | $ | ( |
Three Months Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Derivatives designated as cash flow hedging relationships: | |||||||||||
Foreign currency contracts | |||||||||||
Gain (loss) recognized in OCI (1) | $ | ( | $ | ( | |||||||
Gain reclassified from AOCI into income (1) (2) | ( | ||||||||||
Derivatives not designated as cash flow hedging relationships: | |||||||||||
Foreign currency contracts | |||||||||||
Gain (loss) recognized in income (2) | $ | ( | $ |
At December 31, 2020 | At September 30, 2020 | ||||||||||||||||||||||
Assets (1) | Liabilities (2) | Assets (1) | Liabilities (2) | ||||||||||||||||||||
Foreign currency contracts | |||||||||||||||||||||||
Gross amounts of recognized assets (liabilities) | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Gross amounts offset in the balance sheet | |||||||||||||||||||||||
Net amounts of assets (liabilities) presented in the balance sheet | $ | $ | ( | $ | $ | ( |
December 31, 2020 | September 30, 2020 | ||||||||||
Liabilities at estimated fair value: | |||||||||||
Deferred compensation | $ | ( | $ | ( | |||||||
Derivatives - foreign currency contracts | ( | ( | |||||||||
Net liabilities at estimated fair value | $ | ( | $ | ( |
Three Months Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Net Sales | |||||||||||
Wet Shave | $ | $ | |||||||||
Sun and Skin Care | |||||||||||
Feminine Care | |||||||||||
All Other | |||||||||||
Total net sales | $ | $ | |||||||||
Segment Profit | |||||||||||
Wet Shave | $ | $ | |||||||||
Sun and Skin Care | |||||||||||
Feminine Care | |||||||||||
All Other | |||||||||||
Total segment profit | |||||||||||
General corporate and other expenses | ( | ( | |||||||||
Restructuring and related costs (1) | ( | ( | |||||||||
Acquisition and integration costs (2) | ( | ( | |||||||||
Gain on sale of Infant and Pet Care business | |||||||||||
Feminine and Infant Care evaluation costs (3) | ( | ||||||||||
Amortization of intangibles | ( | ( | |||||||||
Interest and other expense, net | ( | ( | |||||||||
Total earnings before income taxes | $ | $ |
Three Months Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Net Sales to Customers | |||||||||||
United States | $ | $ | |||||||||
International | |||||||||||
Total net sales | $ | $ |
Three Months Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Razors and blades | $ | $ | |||||||||
Tampons, pads, and liners | |||||||||||
Sun care products | |||||||||||
Grooming products | |||||||||||
Wipes and other skin care | |||||||||||
Shaving gels and creams | |||||||||||
Infant care and other | |||||||||||
Total net sales | $ | $ |
Three Months Ended December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
Gross Profit | SG&A | Operating Income | EBIT | Income taxes | Net Earnings | Diluted EPS | |||||||||||||||||||||||||||||||||||
GAAP — Reported | $ | 193.3 | $ | 93.1 | $ | 41.6 | $ | 25.2 | $ | 7.5 | $ | 17.7 | $ | 0.32 | |||||||||||||||||||||||||||
Restructuring and related costs | 0.1 | 0.6 | 4.4 | 4.4 | 1.1 | 3.3 | 0.07 | ||||||||||||||||||||||||||||||||||
Acquisition and integration costs | 1.3 | 1.7 | 3.0 | 3.0 | 0.7 | 2.3 | 0.04 | ||||||||||||||||||||||||||||||||||
Total Adjusted Non-GAAP | $ | 194.7 | $ | 90.8 | $ | 49.0 | $ | 32.6 | $ | 9.3 | $ | 23.3 | $ | 0.43 | |||||||||||||||||||||||||||
GAAP as a percent of net sales | 42.9 | % | 20.6 | % | 9.2 | % | GAAP effective tax rate | 29.7 | % | ||||||||||||||||||||||||||||||||
Adjusted as a percent of net sales | 43.2 | % | 20.1 | % | 10.9 | % | Adjusted effective tax rate | 28.4 | % |
Three Months Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
Gross Profit | SG&A | Operating Income | EBIT | Income taxes | Net Earnings | Diluted EPS | |||||||||||||||||||||||||||||||||||
GAAP — Reported | $ | 193.1 | $ | 95.0 | $ | 37.1 | $ | 29.6 | $ | 7.2 | $ | 22.4 | $ | 0.41 | |||||||||||||||||||||||||||
Restructuring and related costs | — | 1.9 | 8.0 | 8.0 | 1.7 | 6.3 | 0.13 | ||||||||||||||||||||||||||||||||||
Acquisition and integration costs | — | 6.2 | 6.2 | 6.2 | 1.6 | 4.6 | 0.08 | ||||||||||||||||||||||||||||||||||
Gain on sale of Infant and Pet Care business | — | — | — | (5.2) | (1.6) | (3.6) | (0.07) | ||||||||||||||||||||||||||||||||||
Feminine and Infant Care evaluation costs | — | 0.3 | 0.3 | 0.3 | 0.1 | 0.2 | — | ||||||||||||||||||||||||||||||||||
Total Adjusted Non-GAAP | $ | 193.1 | $ | 86.6 | $ | 51.6 | $ | 38.9 | $ | 9.0 | $ | 29.9 | $ | 0.55 | |||||||||||||||||||||||||||
GAAP as a percent of net sales | 42.5 | % | 20.9 | % | 8.2 | % | GAAP effective tax rate | 24.4 | % | ||||||||||||||||||||||||||||||||
Adjusted as a percent of net sales | 42.5 | % | 19.1 | % | 11.4 | % | Adjusted effective tax rate | 23.2 | % |
Net Sales - Total Company | |||||||||||
Quarter Ended December 31, 2020 | |||||||||||
Q1 | % Chg | ||||||||||
Net sales - prior year | $ | 454.0 | |||||||||
Organic | — | — | % | ||||||||
Impact of Cremo acquisition | 16.6 | 3.7 | % | ||||||||
Impact of the sale of the Infant and Pet Care business | (26.8) | (5.9) | % | ||||||||
Impact of currency | 7.3 | 1.6 | % | ||||||||
Net sales - current year | $ | 451.1 | (0.6) | % |
Three Months Ended December 31, 2020 | Three Months Ended December 31, 2019 | ||||||||||||||||||||||||||||||||||
Reported | Adjustments (1) | Adjusted (Non-GAAP) | Reported | Adjustments (1) | Adjusted (Non-GAAP) | ||||||||||||||||||||||||||||||
Earnings before income taxes | $ | 25.2 | $ | 7.4 | $ | 32.6 | $ | 29.6 | $ | 9.3 | $ | 38.9 | |||||||||||||||||||||||
Income tax provision | 7.5 | 1.8 | 9.3 | 7.2 | 1.8 | 9.0 | |||||||||||||||||||||||||||||
Net earnings | $ | 17.7 | $ | 5.6 | $ | 23.3 | $ | 22.4 | $ | 7.5 | $ | 29.9 | |||||||||||||||||||||||
Effective tax rate | 29.7 | % | 24.4 | % | |||||||||||||||||||||||||||||||
Adjusted effective tax rate | 28.4 | % | 23.2 | % |
Net Sales - Wet Shave | |||||||||||
Quarter Ended December 31, 2020 | |||||||||||
Q1 | % Chg | ||||||||||
Net sales - prior year | $ | 277.0 | |||||||||
Organic | (4.2) | (1.5) | % | ||||||||
Impact of currency | 6.3 | 2.3 | % | ||||||||
Net sales - current year | $ | 279.1 | 0.8 | % |
Segment Profit - Wet Shave | |||||||||||
Quarter Ended December 31, 2020 | |||||||||||
Q1 | % Chg | ||||||||||
Segment profit - prior year | $ | 52.9 | |||||||||
Organic | (1.6) | (3.0) | % | ||||||||
Impact of currency | 1.3 | 2.4 | % | ||||||||
Segment profit - current year | $ | 52.6 | (0.6) | % |
Net Sales - Sun and Skin Care | |||||||||||
Quarter Ended December 31, 2020 | |||||||||||
Q1 | % Chg | ||||||||||
Net sales - prior year | $ | 75.1 | |||||||||
Organic | 10.5 | 14.0 | % | ||||||||
Impact of Cremo acquisition | 16.6 | 22.1 | % | ||||||||
Impact of currency | 0.8 | 1.1 | % | ||||||||
Net sales - current year | $ | 103.0 | 37.2 | % |
Segment Profit - Sun and Skin Care | |||||||||||
Quarter Ended December 31, 2020 | |||||||||||
Q1 | % Chg | ||||||||||
Segment profit - prior year | $ | 0.1 | |||||||||
Organic | 2.9 | 2,900.0 | % | ||||||||
Impact of Cremo acquisition | 2.4 | 2,400.0 | % | ||||||||
Impact of currency | (0.2) | (200.0) | % | ||||||||
Segment profit - current year | $ | 5.2 | 5,100.0 | % |
Net Sales - Feminine Care | |||||||||||
Quarter Ended December 31, 2020 | |||||||||||
Q1 | % Chg | ||||||||||
Net sales - prior year | $ | 75.1 | |||||||||
Organic | (6.3) | (8.4) | % | ||||||||
Impact of currency | 0.2 | 0.3 | % | ||||||||
Net sales - current year | $ | 69.0 | (8.1) | % |
Segment Profit - Feminine Care | |||||||||||
Quarter Ended December 31, 2020 | |||||||||||
Q1 | %Chg | ||||||||||
Segment profit - prior year | $ | 13.1 | |||||||||
Organic | (4.3) | (32.8) | % | ||||||||
Impact of currency | — | — | % | ||||||||
Segment profit - current year | $ | 8.8 | (32.8) | % |
Net Sales - All Other | |||||||||||
Quarter Ended December 31, 2020 | |||||||||||
Q1 | %Chg | ||||||||||
Net sales - prior year | $ | 26.8 | |||||||||
Organic | — | — | % | ||||||||
Impact of the sale of the Infant and Pet Care business | (26.8) | (100.0) | % | ||||||||
Impact of currency | — | — | % | ||||||||
Net sales - current year | $ | — | (100.0) | % |
Segment Profit - All Other | |||||||||||
Quarter Ended December 31, 2020 | |||||||||||
Q1 | %Chg | ||||||||||
Segment profit - prior year | $ | 3.1 | |||||||||
Organic | — | — | % | ||||||||
Impact of the sale of the Infant and Pet Care business | (3.1) | (100.0) | % | ||||||||
Impact of currency | — | — | % | ||||||||
Segment profit - current year | $ | — | (100.0) | % |
Quarter Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Corporate expenses | $ | 12.1 | $ | 13.3 | |||||||
Restructuring and related costs | 4.4 | 8.0 | |||||||||
Acquisition and integration costs | 3.0 | 6.2 | |||||||||
Gain on sale of Infant and Pet Care business | — | (5.2) | |||||||||
Feminine and Infant Care evaluation costs | — | 0.3 | |||||||||
General corporate and other expenses | $ | 19.5 | $ | 22.6 | |||||||
% of net sales | 4.3 | % | 5.0 | % |
Three Months Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Net cash from (used by): | |||||||||||
Operating activities | $ | (82.5) | $ | (46.9) | |||||||
Investing activities | (2.3) | 89.7 | |||||||||
Financing activities | (5.5) | (135.9) | |||||||||
Effect of exchange rate changes on cash | 6.4 | 3.3 | |||||||||
Net decrease in cash and cash equivalents | $ | (83.9) | $ | (89.8) |
Summarized Statement of Operations | Three Months Ended December 31, 2020 | ||||
Net sales | $ | 292.5 | |||
Gross profit | 107.5 | ||||
Net loss | (7.8) |
Summarized Balance Sheet | December 31, 2020 | September 30, 2020 | |||||||||
Assets | |||||||||||
Current assets | $ | 368.8 | $ | 419.1 | |||||||
Non-current assets | 1,934.6 | 1,947.4 | |||||||||
Liabilities and Shareholder’s Equity | |||||||||||
Current liabilities | 247.1 | 283.4 | |||||||||
Non-current liabilities | 1,517.6 | 1,517.1 |
Period | Total Number of Shares Purchased (1) (2) | Average Price Paid per share (3) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Maximum Number that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
October 1 to 31, 2020 | — | $ | — | — | 10,000,000 | |||||||||||||||||||||
November 1 to 30, 2020 | 83,377 | 35.39 | — | 10,000,000 | ||||||||||||||||||||||
December 1 to 31, 2020 | 250,000 | 36.69 | 250,000 | 9,750,000 |
Exhibit Number | Exhibit | ||||
3.1 | |||||
3.2 | |||||
3.3 | |||||
10.1 | |||||
10.2 | |||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
101 | The following materials from the Edgewell Personal Care Company Quarterly Report on Form 10-Q formatted in inline eXtensible Business Reporting Language (iXBRL): (i) the Condensed Consolidated Statements of Earnings and Comprehensive Income for the three months ended December 31, 2020 and 2019, (ii) the Condensed Consolidated Balance Sheets at December 31, 2020 and September 30, 2020, (iii) the Condensed Consolidated Statements of Cash Flows for the three months ended December 31, 2020 and 2019, (iv) the Condensed Consolidated Statements of Shareholder’s Equity for the three months ended December 31, 2020 and 2019 and (v) Notes to Condensed Consolidated Financial Statements. The financial information contained in the XBRL-related documents is “unaudited” and “unreviewed.” | ||||
104 | Cover Page Interactive Data File, formatted in iXBRL and contained in Exhibit 101. |
EDGEWELL PERSONAL CARE COMPANY | |||||||||||
Registrant | |||||||||||
By: | /s/ Jennifer Seeser | ||||||||||
Jennifer Seeser | |||||||||||
Chief Accounting Officer | |||||||||||
Date: | February 9, 2021 |
/s/ Rod R. Little | ||
Rod R. Little | ||
Chief Executive Officer | ||
(principal executive officer) |
/s/ Daniel J. Sullivan | ||
Daniel J. Sullivan | ||
Chief Financial Officer | ||
(principal financial officer) |
/s/ Rod R. Little | ||
Rod R. Little | ||
Chief Executive Officer |
/s/ Daniel J. Sullivan | ||
Daniel J. Sullivan | ||
Chief Financial Officer |
Condensed Consolidated Statements of Earnings and Comprehensive Income (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Income Statement [Abstract] | ||
Pension and postretirement activity, tax | $ (0.8) | $ (0.6) |
Deferred loss on hedging activity, tax | $ (0.8) | $ (0.6) |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Dec. 31, 2020 |
Sep. 30, 2020 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 7.6 | $ 8.2 |
Preferred shares, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred shares, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred shares, issued (in shares) | 0 | 0 |
Preferred shares, outstanding (in shares) | 0 | 0 |
Common shares, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common shares, authorized (in shares) | 300,000,000 | 300,000,000 |
Common shares, issued (in shares) | 65,251,989 | 65,251,989 |
Common shares, outstanding (in shares) | 54,275,037 | 54,355,183 |
Treasury shares (in shares) | 10,976,952 | 10,896,806 |
Background and Basis of Presentation |
3 Months Ended |
---|---|
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation Background Edgewell Personal Care Company, and its subsidiaries (collectively, “Edgewell” or the “Company”), is one of the world’s largest manufacturers and marketers of personal care products in the wet shave, sun and skin care, and feminine care categories. Edgewell operates in more than 20 countries with extensive retail reach across 50 markets. The Company conducts its business in the following three segments: •Wet Shave consists of products sold under the Schick®, Wilkinson Sword®, Edge®, Skintimate®, Shave Guard® and Personna® brands, as well as non-branded products. The Company’s wet shave products include razor handles and refillable blades, disposable shave products, and shaving gels and creams. •Sun and Skin Care consists of Banana Boat® and Hawaiian Tropic® sun care products, Jack Black®, Bulldog® and Cremo® men’s grooming products, and Wet Ones® wipes. •Feminine Care includes tampons, pads, and liners sold under the Playtex Gentle Glide® and Sport®, Stayfree®, Carefree®, and o.b.® brands. Through December 2019, the Company also conducted business in its All Other segment which included infant care products, such as bottles, cups, and pacifiers, sold under the Playtex®, OrthoPro® and Binky® brand names, as well as the Diaper Genie® and Litter Genie® disposal systems. The Company completed the sale of the Infant and Pet Care business in December 2019. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of the Company and its controlled subsidiaries and have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”), under the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). The preparation of the unaudited Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results may differ materially from those estimates. All intercompany balances and transactions have been eliminated in consolidation and, in the opinion of management, all normal recurring adjustments considered necessary for a fair presentation have been included in the interim results reported. The fiscal year-end balance sheet data was derived from audited consolidated financial statements, but do not include all of the annual disclosures required by GAAP; accordingly, these unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Company’s audited annual consolidated financial statements included in its Annual Report on Form 10-K filed with the SEC on November 20, 2020. Recently Adopted Accounting Pronouncements. In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13 intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The new guidance applies to all financial instruments, including trade receivables, and requires the measurement of all expected credit losses for financial assets held at a reporting date to be based on historical experience, current conditions and reasonable and supportable forecasts. Previous guidance did not include forward-looking information. The Company adopted the standard effective October 1, 2020. The adoption of the guidance did not have a material impact on the Company’s financial statements. The Company evaluates the creditworthiness of customers when negotiating contracts and, as trade receivables are short term in nature, the timing between recognition of a credit loss under existing guidance and the new guidance is not expected to differ materially. In August 2018, the FASB issued ASU 2018-15, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments in this standard require an entity that is the customer in a hosting arrangement to follow the guidance on internal-use software to determine which implementation costs to capitalize and which costs to expense. The standard also requires a customer to expense the capitalized implementation costs of a hosting arrangement over the term of the hosting arrangement. The new guidance requires an entity to present the expense related to the capitalized implementation costs in the same line item in the statement of income as the fees associated with the hosting element of the arrangement and classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element. The entity is also required to present the capitalized implementation costs in the statement of financial position in the same line item that a prepayment for the fees of the associated hosting arrangement would be presented. The Company adopted the standard effective October 1, 2020 on a prospective basis. The Company does not expect the guidance to have a material impact on its financial statements in fiscal 2021. In October 2020, the FASB issued ASU 2020-09, which amends the codification pursuant to SEC Final Rule No. 33-10762 which was released in March 2020. The standard amends the disclosure requirements in the codification to align with SEC Regulation S-X, Rule 3-10, which permits entities to provide summarized financial information of the parent company and each issuer and guarantor in either a note to the financial statements or in management's discussion and analysis. The Company adopted the final rule effective the second quarter of fiscal 2020.
|
Business Combinations and Divestitures |
3 Months Ended |
---|---|
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combinations and Divestitures | Business Combinations and Divestitures Cremo Holding Company, LLC On September 2, 2020, the Company completed the acquisition of Cremo Holding Company, LLC (“Cremo”). The Company accounted for the acquisition of Cremo utilizing the acquisition method of accounting, which requires assets and liabilities to be recognized based on estimates of their acquisition date fair values. The determination of the values of the acquired assets and assumed liabilities, including goodwill and other intangible assets, requires significant judgement. We have calculated fair values of assets and liabilities acquired from Cremo including goodwill and intangible assets and working capital. The Company completed the final fair value determination of the Cremo acquisition in the first quarter of fiscal year 2021. The changes in the fair value made during the first quarter of fiscal 2021 were not material. The Company used variations of the income approach in determining the fair value of intangible assets acquired in the acquisition of Cremo. Specifically, we utilized the multi-period excess earnings method to determine the fair value of the definite lived customer relationships acquired and the relief from royalty method to determine the fair value of the definite lived trade name and proprietary technology acquired. Our determination of the fair value of the intangible assets acquired involved the use of significant estimates and assumptions related to revenue growth rates, discount rates, customer attrition rates, and royalty rates. Edgewell believes that the fair value assigned to the assets acquired and liabilities assumed are based on reasonable assumptions and estimates that marketplace participants would use. The Company’s purchase price allocation for Cremo included net assets of $234.6 and consisted of working capital and other net assets of $11.5 (including cash of $0.7), other intangible assets of $95.1 and goodwill of $128.0, representing the value of expansion into new markets and channels of trade. Goodwill is deductible for tax purposes. The intangible assets acquired consisted primarily of the Cremo trade name, customer relationships and product formulations with a weighted average useful life of 17 years. All assets are included in the Company’s Sun and Skin Care segment. The Company noted that the net sales and net earnings of Cremo from the beginning of the period through the acquisition date were not material relative to the total net sales and net earnings of the Company during fiscal 2020, and thus pro-forma results for Cremo were not disclosed in accordance with Accounting Standards Codification 805. Acquisition and integration costs related to Cremo totaling $1.7 for the three months ended December 31, 2020 were included in Selling, general and administrative expense (“SG&A”) on the Condensed Consolidated Statements of Earnings and Comprehensive Income. Additionally, acquisition costs of $1.3 were included in Cost of products sold for the three months ended December 31, 2020. Sale of Infant and Pet Care BusinessOn December 17, 2019, the Company completed the sale of its Infant and Pet Care business included in the All Other segment for $122.5, which included consideration for providing services to the purchaser for up to one year under a transition services agreement. The Company received proceeds of $115.0, which includes the consideration for providing support under the transition services agreement, and the remaining sales price receivable includes $5.0 reported in current assets as of December 31, 2020. Total assets included in the sale were comprised of $18.8 of inventory, $3.6 of property, plant and equipment, and $77.8 of goodwill and intangible assets. The sale of the Infant and Pet Care business resulted in a gain of $4.1 in the fiscal 2020 Consolidated Statement of Earnings. The gain on the sale was net of expenses incurred to facilitate the closing of the transaction and in support of the transition services agreement
|
Restructuring Charges |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Charges [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Charges | Restructuring Charges Project Fuel Project Fuel is an enterprise-wide transformational initiative that was launched in the second quarter of fiscal 2018 to address all aspects of our business and cost structure, simplifying and transforming our organization, structure and key processes. Project Fuel is facilitating further re-investment in our growth strategy while enabling us to achieve our desired future state operations. In addition to the expected cost savings, Project Fuel is designed to strengthen our challenger culture and reinforce our consumer-centric organizational focus. It is also designed to simplify the organization and streamline ways of working to increase competitiveness, speed and agility, and ensure we have the skills, capabilities and investments needed to compete in a rapidly changing world. The Company does not include Project Fuel restructuring costs in the results of its reportable segments. The estimated impact of allocating such charges to segment results for the three months ended December 31, 2020 and 2019 would have been as follows:
Pre-tax SG&A of $0.6 and $1.9 for the three months ended December 31, 2020 and 2019, respectively, associated with certain information technology enablement expenses and compensation expenses related to Project Fuel were included in Consulting, project implementation and management, and other exit costs. Pre-tax Cost of products sold of $0.1 for the three months ended December 31, 2020 related to inventory write-offs associated with Project Fuel, were included in Asset impairment and accelerated depreciation. The following table summarizes the Restructuring activities and related accrual (excluding certain obsolescence charges related to the restructuring) for fiscal 2021:
|
Income Taxes |
3 Months Ended |
---|---|
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended December 31, 2020, the Company had income tax expense of $7.5 on Earnings before income taxes of $25.2. The effective tax rate for the three months ended December 31, 2020 was 29.7%. The difference between the federal statutory rate and the effective rate for the three months ended December 31, 2020 is primarily due to the unfavorable mix of earnings in higher tax rate jurisdictions. For the three months ended December 31, 2019, the Company had income tax expense of $7.2 on Earnings before income taxes of $29.6. The effective tax rate for the three months ended December 31, 2019 was 24.4%. The difference between the federal statutory rate and the effective rate is primarily due to the unfavorable impact of the Infant and Pet Care sale.
|
Earnings per Share |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share | Earnings per Share Basic earnings per share is based on the weighted-average number of common shares outstanding during the period. Diluted earnings per share is based on the number of shares used for the basic earnings per share calculation, adjusted for the dilutive effect of share options and restricted share equivalent (“RSE”) awards. The following is the reconciliation between the number of weighted-average shares used in the basic and diluted earnings per share calculation:
For the three months ended December 31, 2020, the calculation of diluted weighted-average shares outstanding excludes 1.0 of share options and 0.1 of RSE awards because the effect of including these awards was anti-dilutive. For the three months ended December 31, 2019, the calculation of diluted weighted-average shares outstanding excludes 0.7 of share options and 0.1 of RSE awards because the effect of including these awards was anti-dilutive.
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Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table sets forth goodwill by segment:
The following table sets forth definite-lived intangible assets by class:
Amortization expense was $5.5 and $4.3 for the three months ended December 31, 2020 and 2019, respectively. Estimated amortization expense for amortizable intangible assets for the remainder of fiscal 2021 and for fiscal 2022, 2023, 2024, 2025 and 2026 is $16.6, $22.0, $22.0, $21.9, $21.9 and $21.7, respectively, and $196.2 thereafter. The Company had indefinite-lived intangible assets of $605.2 ($186.3 in Wet Shave, $389.0 in Sun and Skin Care, and $29.9 in Feminine Care) at December 31, 2020, an increase of $3.8 from September 30, 2020, which was the result of foreign currency fluctuations. The Company had indefinite-lived trade names and brands of $601.4 ($183.1 in Wet Shave, $388.4 in Sun and Skin Care, and $29.9 in Feminine Care) at September 30, 2020. Goodwill and intangible assets deemed to have an indefinite life are not amortized but are instead reviewed annually for impairment of value or when indicators of a potential impairment are present. The Company’s annual impairment testing date is July 1. The Company continuously monitors events which could trigger an interim impairment analysis, such as changing business conditions and environmental factors, which included the impact of the ongoing novel coronavirus 2019 (“COVID-19”) pandemic. The Company determined there was no triggering event requiring an interim impairment analysis during the three months ended December 31, 2020. The qualitative analysis performed by the Company concluded that it was more likely than not that the goodwill and intangible assets had fair values greater than the carrying values. However, the continued duration and severity of COVID-19 may result in future impairment charges as the prolonged pandemic could have an additional impact on the results of the Company’s operations due to changes in consumer habits. This could result in changes to the assumptions utilized in the annual impairment analysis to determine the estimated fair value of the Company’s goodwill and indefinite-lived intangible assets, including long term growth rates and discount rates. Refer to the sensitivity analysis in Management's Discussion and Analysis in the Company’s Annual Report on Form 10-K filed with the SEC on November 20, 2020.
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Supplemental Balance Sheet Information |
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Supplemental Balance Sheet Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information
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Leases |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment over a contracted period in exchange for payment. The Company evaluates if an arrangement is a lease at the effective date of the agreement. For operating leases entered into prior to October 1, 2019, the right of use (“ROU”) assets and operating lease liabilities are recognized on the balance sheet based on the present value of the remaining future minimum payments over the lease term from the implementation date. Certain leases include an option to either renew or terminate the lease. For purposes of calculating lease liabilities, these options are included within the lease term when it has become reasonably certain that the Company will exercise such options. Leases entered into subsequent to the implementation date calculate the operating lease ROU asset and operating lease liabilities based on the present value of minimum payments over the lease term at the effective date of the lease. The Company leases certain offices and manufacturing facilities, warehouses, employee vehicles and certain manufacturing related equipment. Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheet. All recorded leases are classified as operating leases, and lease expense is recognized on a straight-line basis over the lease term. The Company has elected to utilize the package of practical expedients which allows it to carryforward its historical lease classification, its assessment on whether a contract was or contains a lease, and its assessment of initial direct costs for any leases that existed prior to October 1, 2019. Additionally, the Company has elected as an accounting policy not to separate non-lease components from lease components and, instead, account for these components as a single lease component. The Company has made an accounting policy election not to recognize ROU assets and lease liabilities for leases that, at the commencement date, are for 12 months or less. For leases that do not provide an implicit rate, the Company uses its secured incremental borrowing rate, based on the information available for leases, including the lease term and interest rate environment in the country in which the lease exists, to calculate the present value of the future lease payments. A summary of the Company's lease information is as follows:
(1)Lease expense is included in Cost of products sold or SG&A expense based on the nature of the lease. Short-term lease expense is excluded from this amount and is not material. The Company's future lease payments including reasonably assured renewal options under lease agreements are as follows:
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Accounts Receivable Facility |
3 Months Ended |
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Dec. 31, 2020 | |
Transfers and Servicing [Abstract] | |
Accounts receivable facility | Accounts Receivable Facility On September 15, 2017, the Company entered into a $150 uncommitted master accounts receivable purchase agreement with The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as the purchaser (the “Accounts Receivable Facility”). Transfers under the Accounts Receivable Facility are accounted for as sales of receivables, resulting in the receivables being de-recognized from the Consolidated Balance Sheet. The purchaser assumes the credit risk at the time of sale and has the right at any time to assign, transfer, or participate any of its rights under the purchased receivables to another bank or financial institution. The purchase and sale of receivables under the Accounts Receivable Facility is intended to be an absolute and irrevocable transfer without recourse by the purchaser to the Company for the creditworthiness of any obligor. The Company continues to have collection and servicing responsibilities for the receivables sold and receives separate compensation for their servicing. The compensation received is considered acceptable servicing compensation and, as such, the Company does not recognize a servicing asset or liability. As of December 31, 2020, the discount rate used to determine the purchase price for the subject receivables is based upon LIBOR plus a margin applicable to the specified obligor. Accounts receivables sold under this agreement for the quarter ended December 31, 2020 and 2019 were $138.4 and $181.7, respectively. The trade receivables sold that remained outstanding as of December 31, 2020 and September 30, 2020 were $67.7 and $77.0, respectively. The net proceeds received were included in cash provided by operating activities and cash provided by investing activities on the Condensed Consolidated Statements of Cash Flows. The difference between the carrying amount of the trade receivables sold and the sum of the cash received is recorded as a loss on sale of receivables in Other income, net in the Condensed Consolidated Statements of Earnings. For the three months ended December 31, 2020 and 2019, the loss on sale of trade receivables was $0.2 and $0.5, respectively.
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Debt |
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The detail of long-term debt was as follows:
(1)At December 31, 2020, the balance for the Senior Notes due 2022 and the Senior Notes due 2028 are reflected net of debt issuance costs of $0.5 and $10.9, respectively. At September 30, 2020, the balance for the Senior Notes due 2022 and the Senior Notes due 2028 are reflected net of debt issuance costs of $0.6 and $11.3, respectively. (2)At December 31, 2020 and September 30, 2020, the balance for the Senior Notes due 2022 was reflected net of discount of $0.2 and $0.2, respectively. The Company had outstanding variable-rate international borrowings, recorded in Notes payable, of $24.1 and $21.1 as of December 31, 2020 and September 30, 2020, respectively.
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Retirement Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Plans | Retirement Plans The Company has several defined benefit pension plans covering employees in the U.S. and certain employees in other countries, which are included in the information presented below. The plans provide retirement benefits based on years of service and compensation. The Company also sponsors or participates in several other non-U.S. pension and postretirement arrangements, including various retirement and termination benefit plans, some of which are required by local law or coordinated with government-sponsored plans, which are not significant in the aggregate and, therefore, are not included in the information presented below. The Company’s net periodic pension and postretirement costs for these plans for the three months ended December 31 were as follows:
The service cost component of the net periodic cost associated with the Company’s retirement plans is recorded to Cost of products sold and SG&A on the Condensed Consolidated Statement of Earnings. The remaining net periodic cost is recorded to Other income, net on the Condensed Consolidated Statement of Earnings.
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Equity |
3 Months Ended |
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Dec. 31, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ EquityIn January 2018, the Board approved an authorization to repurchase up to 10.0 shares of the Company’s common stock, replacing the previous share repurchase authorization from May 2015. The Company repurchased 0.3 shares of its common stock for $9.2 during the three months ended December 31, 2020. The Company has 9.7 shares of its common stock available for repurchase in the future under the Board’s authorization. Any future share repurchases may be made in the open market, privately negotiated transactions, or otherwise, in such amounts and at such times as the Company deems appropriate based upon prevailing market conditions, business needs, and other factors.On November 20, 2020, the Company’s Board of Directors declared a cash dividend of $0.15 per share of common stock outstanding, payable on January 6, 2021 to holders of record as of the close of business on December 10, 2020. Dividends declared during the three months ended December 31, 2020 totaled $8.5. There were no payments made on dividends during the three months ended December 31, 2020.On February 9, 2021, the Company’s Board of Directors declared a cash dividend of $0.15 per share of common stock outstanding. The dividend is payable April 6, 2021 to holders of record as of the close of business on March 5, 2021. |
Accumulated Other Comprehensive Loss |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table presents the changes in accumulated other comprehensive loss (“AOCI”), net of tax, by component:
(1)OCI is defined as other comprehensive income (loss). The following table presents the reclassifications out of AOCI:
(1)These AOCI components are included in the computation of net periodic cost. See Note 11 of Notes to Condensed Consolidated Financial Statements.
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Financial Instruments and Risk Management |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments and Risk Management | Financial Instruments and Risk Management In the course of business, the Company enters into contractual arrangements (also referred to as derivatives) to reduce its exposure to foreign currency. The Company has master netting agreements with all of its counterparties that allow for the settlement of contracts in an asset position with contracts in a liability position in the event of default. The Company manages counterparty risk through the utilization of investment grade commercial banks, diversification of counterparties, and its counterparty netting arrangements. The section below outlines the types of derivatives that existed at December 31, 2020 and September 30, 2020, as well as the Company’s objectives and strategies for holding derivative instruments. Foreign Currency Risk A significant share of the Company’s sales is tied to currencies other than the U.S. dollar, the Company’s reporting currency. As such, a weakening of currencies relative to the U.S. dollar can have a negative impact on reported earnings. Conversely, strengthening of currencies relative to the U.S. dollar can improve reported results. The primary currencies to which the Company is exposed include the euro, the Japanese yen, the British pound, the Canadian dollar, and the Australian dollar. Additionally, the Company’s foreign subsidiaries enter into internal and external transactions that create non-functional 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 an exchange gain or loss recorded in Other income, net. The primary currency to which the Company’s foreign subsidiaries are exposed is the U.S. dollar. Cash Flow Hedges At December 31, 2020, the Company maintained a cash flow hedging program related to foreign currency risk. These derivative instruments have a high correlation to the underlying exposure being hedged and have been deemed highly effective by the Company for accounting purposes in offsetting the associated risk. The Company entered into a series of forward currency contracts to hedge cash flow uncertainty associated with currency fluctuations. These transactions are accounted for as cash flow hedges. The Company had unrealized pre-tax losses of $5.6 and $3.0 at December 31, 2020 and September 30, 2020, respectively, on these forward currency contracts, which are accounted for as cash flow hedges and included in AOCI. Assuming foreign exchange rates versus the U.S. dollar remain at December 31, 2020 levels over the next 12 months, most of the pre-tax gain included in AOCI at December 31, 2020 is expected to be included in Other income, net. Contract maturities for these hedges extend into fiscal 2022. At December 31, 2020, there were 64 open foreign currency contracts with a total notional value of $128.4. Derivatives not Designated as Hedges The Company entered into foreign currency derivative contracts which are not designated as cash flow hedges for accounting purposes to hedge balance sheet exposures. Any gains or losses on these contracts are expected to be offset by exchange gains or losses on the underlying exposures and thus are not subject to significant market risk. The change in the estimated fair value of the foreign currency contracts for the three months ended December 31, 2020 resulted in a loss of $1.1, compared to a gain of $0.3 for the three months ended December 31, 2019, and was recorded in Other income, net in the Condensed Consolidated Statements of Earnings. At December 31, 2020, there were six open foreign currency derivative contracts not designated as cash flow hedges with a total notional value of $45.0. The following table provides estimated fair values of derivative instruments:
(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. The following table provides the amounts of gains and losses on derivative instruments:
(1)Each of these derivative instruments had a high correlation to the underlying exposure being hedged for the periods indicated and have been deemed highly effective by the Company in offsetting associated risk. (2)Gain (loss) was recorded in Other income, net. The following table provides financial assets and liabilities for balance sheet offsetting:
(1)All derivative assets are presented in Other current assets or Other assets. (2)All derivative liabilities are presented in Other current liabilities or Other liabilities. 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. The following table sets forth the Company’s financial assets and liabilities, which are carried at fair value and measured on a recurring basis during the period, all of which are classified as Level 2 within the fair value hierarchy:
The estimated fair value of the deferred compensation liability is determined based upon the quoted market prices of the investment options that are offered under the plan. At December 31, 2020, the estimated fair value of foreign currency contracts is the amount that the Company would receive or pay to terminate the contracts, considering first the quoted market prices of comparable agreements or, in the absence of quoted market prices, factors such as interest rates, currency exchange rates, and remaining maturities. At December 31, 2020 and September 30, 2020 the Company had no Level 1 financial assets or liabilities, other than pension plan assets, and no Level 3 financial assets or liabilities at December 31, 2020 and at September 30, 2020. At December 31, 2020 and September 30, 2020 the fair market value of fixed rate long-term debt was $1,356.7 and $1,323.1, respectively, compared to its carrying value of $1,250.0. The estimated fair value of the long-term debt was estimated using yields obtained from independent pricing sources for similar types of borrowing arrangements. The estimated fair value of long-term debt, excluding revolving credit facilities, have been determined based on Level 2 inputs. Due to the nature of cash and cash equivalents and short-term borrowings, including notes payable, carrying amounts on the balance sheets approximate fair value. Additionally, the carrying amounts of the Company’s revolving credit facilities, which are classified as long-term debt on the balance sheet, approximate fair value due to the revolving nature of the balances. The estimated fair value of cash and cash equivalents, short-term borrowings, and the revolving credit agreement have been determined based on Level 2 inputs.
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Segment Data |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Data | Segment Data For an overview of the Company’s segments, refer to Note 1 to Notes to Condensed Consolidated Financial Statements. Segment performance is evaluated based on segment profit, exclusive of general corporate expenses, share-based compensation costs, restructuring charges, and certain costs deemed non-recurring in nature, including evaluation, acquisition and integration costs, gains or losses on the sale of businesses, and the amortization of intangible assets. Financial items, such as interest income and expense, are managed on a global basis at the corporate level. The exclusion of such charges from segment results reflects management’s view on how it evaluates segment performance. The Company completed the sale of its Infant and Pet Care business in December 2019. As a result, no additional Net Sales or Segment Profit will be reported for the All Other segment in subsequent periods. The Company’s operating model includes some shared business functions across the segments, including product warehousing and distribution, transaction processing functions and, in most cases, combined sales force and management teams. The Company applies a fully allocated cost basis in which shared business functions are allocated between the segments. Segment net sales and profitability are presented below:
(1)Includes pre-tax SG&A of $0.6 and $1.9 for the three months ended December 31, 2020 and 2019, respectively, associated with certain information technology enablement expenses and incentive and retention compensation expenses for Project Fuel. Additionally, pre-tax Cost of products sold of $0.1 for the three months ended December 31, 2020 related to inventory write-offs associated with Project Fuel is included. (2)Includes pre-tax SG&A of $1.7 and $6.2 for the three months ended December 31, 2020 and 2019, respectively, related to acquisition and integration costs. Additionally, Cost of products sold of $1.3 related to the valuation of acquired inventory for three months ended December 31, 2020 is included. (3)Includes pre-tax SG&A of $0.3 for the three months ended December 31, 2019. The following table presents the Company’s net sales by geographic area:
Supplemental product information is presented below for net sales:
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Restructuring Charges (Tables) |
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Restructuring Charges [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Charges Related to Restructuring Activities | The Company does not include Project Fuel restructuring costs in the results of its reportable segments. The estimated impact of allocating such charges to segment results for the three months ended December 31, 2020 and 2019 would have been as follows:
Pre-tax SG&A of $0.6 and $1.9 for the three months ended December 31, 2020 and 2019, respectively, associated with certain information technology enablement expenses and compensation expenses related to Project Fuel were included in Consulting, project implementation and management, and other exit costs. Pre-tax Cost of products sold of $0.1 for the three months ended December 31, 2020 related to inventory write-offs associated with Project Fuel, were included in Asset impairment and accelerated depreciation.
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Schedule of Restructuring Activities and Related Accruals | The following table summarizes the Restructuring activities and related accrual (excluding certain obsolescence charges related to the restructuring) for fiscal 2021:
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Earnings per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted-Average Shares Outstanding | The following is the reconciliation between the number of weighted-average shares used in the basic and diluted earnings per share calculation:
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Goodwill and Intangible Assets (Tables) |
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The following table sets forth goodwill by segment:
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Schedule of Amortizable Intangible Assets | The following table sets forth definite-lived intangible assets by class:
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Supplemental Balance Sheet Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplement Balance Sheet Information |
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Leases (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Lease Information | A summary of the Company's lease information is as follows:
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Lessee, Operating Lease, Liability, Maturity | The Company's future lease payments including reasonably assured renewal options under lease agreements are as follows:
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Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt | The detail of long-term debt was as follows:
(1)At December 31, 2020, the balance for the Senior Notes due 2022 and the Senior Notes due 2028 are reflected net of debt issuance costs of $0.5 and $10.9, respectively. At September 30, 2020, the balance for the Senior Notes due 2022 and the Senior Notes due 2028 are reflected net of debt issuance costs of $0.6 and $11.3, respectively. (2)At December 31, 2020 and September 30, 2020, the balance for the Senior Notes due 2022 was reflected net of discount of $0.2 and $0.2, respectively.
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Retirement Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Periodic Pension and Postretirement Cost (Benefit) | The Company’s net periodic pension and postretirement costs for these plans for the three months ended December 31 were as follows:
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Accumulated Other Comprehensive Loss (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Accumulated Other Comprehensive Loss | The following table presents the changes in accumulated other comprehensive loss (“AOCI”), net of tax, by component:
(1)OCI is defined as other comprehensive income (loss).
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Schedule of Reclassifications out of Accumulated Other Comprehensive Loss | The following table presents the reclassifications out of AOCI:
(1)These AOCI components are included in the computation of net periodic cost. See Note 11 of Notes to Condensed Consolidated Financial Statements.
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Financial Instruments and Risk Management (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Values of Derivative Instruments | The following table provides estimated fair values of derivative instruments:
(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.
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Schedule of Gains and Losses on Derivative Instruments | The following table provides the amounts of gains and losses on derivative instruments:
(1)Each of these derivative instruments had a high correlation to the underlying exposure being hedged for the periods indicated and have been deemed highly effective by the Company in offsetting associated risk. (2)Gain (loss) was recorded in Other income, net.
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Schedule of Offsetting Assets and Liabilities | The following table provides financial assets and liabilities for balance sheet offsetting:
(1)All derivative assets are presented in Other current assets or Other assets. (2)All derivative liabilities are presented in Other current liabilities or Other liabilities.
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Schedule of Fair Value of 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 and measured on a recurring basis during the period, all of which are classified as Level 2 within the fair value hierarchy:
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Segment Data (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Sales and Profitability | Segment net sales and profitability are presented below:
(1)Includes pre-tax SG&A of $0.6 and $1.9 for the three months ended December 31, 2020 and 2019, respectively, associated with certain information technology enablement expenses and incentive and retention compensation expenses for Project Fuel. Additionally, pre-tax Cost of products sold of $0.1 for the three months ended December 31, 2020 related to inventory write-offs associated with Project Fuel is included. (2)Includes pre-tax SG&A of $1.7 and $6.2 for the three months ended December 31, 2020 and 2019, respectively, related to acquisition and integration costs. Additionally, Cost of products sold of $1.3 related to the valuation of acquired inventory for three months ended December 31, 2020 is included. (3)Includes pre-tax SG&A of $0.3 for the three months ended December 31, 2019.
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Schedule of Sales by Geographic Area | The following table presents the Company’s net sales by geographic area:
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Schedule of Supplemental Product Information | Supplemental product information is presented below for net sales:
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Background and Basis of Presentation (Details) |
Dec. 31, 2020
country
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries in which Edgewell operates | 20 |
Number of countries with retail operations | 50 |
Restructuring Charges (Schedule of Charges Related to Restructuring Activities) (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
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Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges, Including Amounts in Selling, General and Administrative Expenses and Cost of Product Sold | [1] | $ 4.4 | $ 8.0 | |
Project Fuel | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance Costs | 2.3 | 1.3 | ||
Asset Impairment and Accelerated Depreciation | 0.1 | 0.0 | ||
Other Restructuring Costs | 2.0 | 6.7 | ||
Restructuring Charges, Including Amounts in Selling, General and Administrative Expenses and Cost of Product Sold | 4.4 | 8.0 | ||
Project Fuel | Wet Shave | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance Costs | 0.5 | 0.0 | ||
Asset Impairment and Accelerated Depreciation | 0.1 | 0.0 | ||
Other Restructuring Costs | 0.5 | 2.8 | ||
Restructuring Charges, Including Amounts in Selling, General and Administrative Expenses and Cost of Product Sold | 1.1 | 2.8 | ||
Project Fuel | Sun and Skin Care | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance Costs | 0.0 | 0.0 | ||
Asset Impairment and Accelerated Depreciation | 0.0 | 0.0 | ||
Other Restructuring Costs | 0.0 | 0.0 | ||
Restructuring Charges, Including Amounts in Selling, General and Administrative Expenses and Cost of Product Sold | 0.0 | 0.0 | ||
Project Fuel | Feminine Care | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance Costs | 0.0 | 0.0 | ||
Asset Impairment and Accelerated Depreciation | 0.0 | 0.0 | ||
Other Restructuring Costs | 0.0 | 0.0 | ||
Restructuring Charges, Including Amounts in Selling, General and Administrative Expenses and Cost of Product Sold | 0.0 | 0.0 | ||
Project Fuel | Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance Costs | 1.8 | 1.3 | ||
Asset Impairment and Accelerated Depreciation | 0.0 | 0.0 | ||
Other Restructuring Costs | 1.5 | 3.9 | ||
Restructuring Charges, Including Amounts in Selling, General and Administrative Expenses and Cost of Product Sold | 3.3 | 5.2 | ||
IT enablement | Selling, general and administrative expenses | Project Fuel | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges, Including Amounts in Selling, General and Administrative Expenses and Cost of Product Sold | 0.6 | $ 1.9 | ||
Inventory obsolescence | Cost of products sold | Project Fuel | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges, Including Amounts in Selling, General and Administrative Expenses and Cost of Product Sold | $ 0.1 | |||
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Restructuring Charges (Schedule of Restructuring Activities and Related Accruals) (Details) - USD ($) $ in Millions |
3 Months Ended | |||||
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Dec. 31, 2020 |
Dec. 31, 2019 |
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Restructuring Reserve [Roll Forward] | ||||||
Restructuring and related costs | [1] | $ 4.4 | $ 8.0 | |||
Project Fuel | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning Balance | 5.4 | |||||
Restructuring and related costs | 4.4 | $ 8.0 | ||||
Other | [2] | 0.1 | ||||
Utilized - Cash Payments | (7.9) | |||||
Utilized - Non-Cash | (0.1) | |||||
Ending Balance | 1.9 | |||||
Employee Severance [Member] | Project Fuel | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning Balance | 4.3 | |||||
Restructuring and related costs | 2.3 | |||||
Other | [2] | 0.1 | ||||
Utilized - Cash Payments | (5.8) | |||||
Utilized - Non-Cash | 0.0 | |||||
Ending Balance | 0.9 | |||||
Asset Impairment and Accelerated Depreciation [Member] | Project Fuel | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning Balance | 0.0 | |||||
Restructuring and related costs | 0.1 | |||||
Other | [2] | 0.0 | ||||
Utilized - Cash Payments | 0.0 | |||||
Utilized - Non-Cash | (0.1) | |||||
Ending Balance | 0.0 | |||||
Other Restructuring [Member] | Project Fuel | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning Balance | 1.1 | |||||
Restructuring and related costs | 2.0 | |||||
Other | [2] | 0.0 | ||||
Utilized - Cash Payments | (2.1) | |||||
Utilized - Non-Cash | 0.0 | |||||
Ending Balance | $ 1.0 | |||||
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Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
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Income Tax Disclosure [Abstract] | ||
Income tax provision | $ 7.5 | $ 7.2 |
Earnings before income taxes | $ 25.2 | $ 29.6 |
Effective tax rate | 29.70% | 24.40% |
Earnings per Share (Schedule of Weighted-Average Shares Outstanding) (Details) - shares shares in Millions |
3 Months Ended | |
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Dec. 31, 2020 |
Dec. 31, 2019 |
|
Schedule Of Weighted Average Number Of Shares [Line Items] | ||
Basic weighted-average shares outstanding (in shares) | 54.4 | 54.3 |
Effect of dilutive securities (in shares) | 0.4 | 0.1 |
Diluted weighted-average shares outstanding (in shares) | 54.8 | 54.4 |
RSE awards | ||
Schedule Of Weighted Average Number Of Shares [Line Items] | ||
Effect of dilutive securities (in shares) | 0.4 | 0.1 |
RSE awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive awards excluded from the calculation of diluted weighted-average shares outstanding (in shares) | 0.1 | 0.1 |
Share options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive awards excluded from the calculation of diluted weighted-average shares outstanding (in shares) | 1.0 | 0.7 |
Goodwill and Intangible Assets (Schedule of Goodwill) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Sep. 30, 2020 |
|
Goodwill [Line Items] | ||
Goodwill, Gross | $ 1,538.7 | $ 1,530.7 |
Accumulated goodwill impairment loss | 371.0 | 371.0 |
Goodwill [Roll Forward] | ||
Beginning balance | 1,159.7 | |
Goodwill, Acquired During Period | 0.3 | |
Cumulative translation adjustment | (7.7) | |
Ending balance | 1,167.7 | |
Wet Shave | ||
Goodwill [Line Items] | ||
Goodwill, Gross | 972.0 | 967.2 |
Accumulated goodwill impairment loss | 369.0 | 369.0 |
Goodwill [Roll Forward] | ||
Beginning balance | 598.2 | |
Goodwill, Acquired During Period | 0.0 | |
Cumulative translation adjustment | (4.8) | |
Ending balance | 603.0 | |
Sun and Skin Care | ||
Goodwill [Line Items] | ||
Goodwill, Gross | 358.1 | 356.8 |
Accumulated goodwill impairment loss | 2.0 | 2.0 |
Goodwill [Roll Forward] | ||
Beginning balance | 354.8 | |
Goodwill, Acquired During Period | 0.3 | |
Cumulative translation adjustment | (1.0) | |
Ending balance | 356.1 | |
Feminine Care | ||
Goodwill [Line Items] | ||
Goodwill, Gross | 208.6 | 206.7 |
Accumulated goodwill impairment loss | 0.0 | $ 0.0 |
Goodwill [Roll Forward] | ||
Beginning balance | 206.7 | |
Goodwill, Acquired During Period | 0.0 | |
Cumulative translation adjustment | (1.9) | |
Ending balance | $ 208.6 |
Goodwill and Intangible Assets (Schedule of Amortizable Intangible Assets) (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Sep. 30, 2020 |
|
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, gross carrying amount | $ 558.1 | $ 555.2 | |
Amortizable intangible assets, accumulated amortization | 235.8 | 228.5 | |
Amortizable intangible assets, net | 322.3 | 326.7 | |
Amortization of intangibles | 5.5 | $ 4.3 | |
Amortizable intangible assets, amortization expense, remainder of 2021 | 16.6 | ||
Amortizable intangible assets, amortization expense, fiscal 2022 | 22.0 | ||
Amortizable intangible assets, amortization expense, fiscal 2023 | 22.0 | ||
Amortizable intangible assets, amortization expense, fiscal 2024 | 21.9 | ||
Amortizable intangible assets, amortization expense, fiscal 2025 | 21.9 | ||
Amortizable intangible assets, amortization expense, fiscal 2026 | 21.7 | ||
Amortizable intangible assets, amortization expense, after fiscal 2026 | 196.2 | ||
Trade names and brands | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, gross carrying amount | 256.4 | 256.2 | |
Amortizable intangible assets, accumulated amortization | 48.7 | 45.4 | |
Amortizable intangible assets, net | 207.7 | 210.8 | |
Technology and patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, gross carrying amount | 79.5 | 79.1 | |
Amortizable intangible assets, accumulated amortization | 75.8 | 75.3 | |
Amortizable intangible assets, net | 3.7 | 3.8 | |
Customer related and other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, gross carrying amount | 222.2 | 219.9 | |
Amortizable intangible assets, accumulated amortization | 111.3 | 107.8 | |
Amortizable intangible assets, net | $ 110.9 | $ 112.1 |
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Sep. 30, 2020 |
|
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 605.2 | $ 601.4 |
Indefinite-lived intangible assets, increase | 3.8 | |
Wet Shave | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 186.3 | 183.1 |
Sun and Skin Care | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 389.0 | 388.4 |
Feminine Care | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 29.9 | $ 29.9 |
Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions |
Dec. 31, 2020 |
Sep. 30, 2020 |
---|---|---|
Inventories | ||
Raw materials and supplies | $ 61.6 | $ 58.5 |
Work in process | 73.0 | 71.5 |
Finished products | 202.4 | 184.1 |
Total inventories | 337.0 | 314.1 |
Other Current Assets | ||
Miscellaneous receivables | 25.8 | 23.3 |
Inventory returns receivable | 0.9 | 1.0 |
Prepaid expenses | 69.6 | 64.8 |
Value added tax collectible from customers | 19.9 | 20.4 |
Income taxes receivable | 23.9 | 26.3 |
Other | 8.5 | 10.2 |
Total other current assets | 148.6 | 146.0 |
Property, Plant and Equipment | ||
Land | 19.6 | 19.3 |
Buildings | 144.3 | 142.2 |
Machinery and equipment | 1,029.9 | 1,014.2 |
Capitalized software costs | 55.1 | 53.6 |
Construction in progress | 37.1 | 32.7 |
Total gross property, plant and equipment | 1,286.0 | 1,262.0 |
Accumulated depreciation and amortization | (917.1) | (891.1) |
Total property, plant and equipment, net | 368.9 | 370.9 |
Other Current Liabilities | ||
Accrued advertising, sales promotion and allowances | 34.2 | 49.4 |
Accrued trade allowances | 29.1 | 30.8 |
Accrued salaries, vacations and incentive compensation | 33.4 | 62.6 |
Income taxes payable | 2.1 | 13.4 |
Returns reserve | 27.7 | 44.8 |
Restructuring reserve | 1.9 | 5.4 |
Value added tax payable | 5.1 | 6.8 |
Deferred compensation | 8.4 | 5.9 |
Short term lease obligation | 9.1 | 9.1 |
Customer advance payments | 0.7 | 1.4 |
Dividends payable | 8.5 | 0.0 |
Other | 61.9 | 77.9 |
Total other current liabilities | 222.1 | 307.5 |
Other Liabilities | ||
Pensions and other retirement benefits | 122.2 | 121.0 |
Deferred compensation | 27.6 | 28.2 |
Noncurrent lease obligation | 35.4 | 34.6 |
Other non-current liabilities | 74.5 | 73.3 |
Total other liabilities | $ 259.7 | $ 257.1 |
Leases (Summary of Lease Information) (Details) - USD ($) $ in Millions |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Sep. 30, 2020 |
||||
Leases [Abstract] | ||||||
Operating lease, right-of-use asset | $ 44.3 | $ 43.5 | ||||
Short term lease obligation | 9.1 | 9.1 | ||||
Noncurrent lease obligation | 35.4 | 34.6 | ||||
Total lease obligation | $ 44.5 | $ 43.7 | ||||
Operating lease, weighted average remaining lease term | 11 years | 12 years | ||||
Operating lease, weighted average discount rate, percent | 7.20% | 7.20% | ||||
Operating lease, expense | $ 3.9 | [1] | $ 3.7 | |||
Right-of-use asset obtained in exchange for operating lease liability | 3.9 | 0.1 | ||||
Operating lease, payments | $ 4.0 | $ 3.8 | ||||
|
Leases (Operating Lease Payment Schedule) (Details) - USD ($) $ in Millions |
Dec. 31, 2020 |
Sep. 30, 2020 |
---|---|---|
Leases [Abstract] | ||
Lessee, operating lease, payment due current year | $ 8.3 | |
Lessee, operating lease, payment due year two | 9.0 | |
Lessee, operating lease, payment due year three | 7.3 | |
Lessee, operating lease, payment due year four | 5.3 | |
Lessee, operating lease, payment due year five | 4.4 | |
Lessee, operating lease, payment due after year five | 36.8 | |
Lessee, operating lease, payments due | 71.1 | |
Lessee, operating lease, undiscounted excess amount | 26.6 | |
Total lease obligation | $ 44.5 | $ 43.7 |
Accounts Receivable Facility (Narrative) (Details) - Accounts receivable sales agreement - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Sep. 30, 2020 |
|
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Accounts receivable sold through AR Facility | $ 138.4 | $ 181.7 | |
Transfer of accounts receivable, sales amount derecognized | 67.7 | $ 77.0 | |
Loss on sale of accounts receivable | $ 0.2 | $ 0.5 |
Debt (Details) - USD ($) $ in Millions |
Dec. 31, 2020 |
Sep. 30, 2020 |
||||
---|---|---|---|---|---|---|
Debt Instrument [Line Items] | ||||||
Total long-term debt, including current maturities | $ 1,250.0 | $ 1,250.0 | ||||
Unamortized discount and debit issuance costs | [1],[2] | 11.6 | 12.1 | |||
Long-term debt | 1,238.4 | 1,237.9 | ||||
Notes payable | 24.1 | 21.1 | ||||
Senior notes | Senior Notes, Due 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Total long-term debt, including current maturities | 500.0 | 500.0 | ||||
Unamortized debt issuance costs | 0.5 | 0.6 | ||||
Unamortized discount | 0.2 | 0.2 | ||||
Senior notes | Senior Notes, Due 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Total long-term debt, including current maturities | 750.0 | 750.0 | ||||
Unamortized debt issuance costs | $ 10.9 | $ 11.3 | ||||
|
Retirement Plans (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Retirement Benefits [Abstract] | ||
Service cost | $ 1.1 | $ 1.1 |
Interest cost | 2.5 | 3.4 |
Expected return on plan assets | (5.6) | (5.8) |
Recognized net actuarial loss | 2.3 | 2.3 |
Settlement loss recognized | 0.0 | 0.2 |
Net periodic cost | $ 0.3 | $ 1.2 |
Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | ||
---|---|---|---|
Nov. 20, 2020 |
Dec. 31, 2020 |
Jan. 26, 2018 |
|
Equity [Abstract] | |||
Share repurchase authorization | 10.0 | ||
Treasury shares repurchased (in shares) | 0.3 | ||
Treasury shares repurchased (in usd) | $ 9.2 | ||
Share repurchase authorization, remaining | 9.7 | ||
Dividends declared (per share) | $ 0.15 | ||
Dividends declared | $ 8.5 |
Accumulated Other Comprehensive Loss (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ (191.6) | $ (235.9) | ||
OCI before reclassifications | [1] | 27.2 | 17.5 | |
Reclassifications to earnings | 2.7 | 1.2 | ||
Ending balance | (161.7) | (217.2) | ||
Foreign Currency Translation Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (47.4) | (77.3) | ||
OCI before reclassifications | [1] | 33.7 | 21.5 | |
Reclassifications to earnings | 0.0 | 0.0 | ||
Ending balance | (13.7) | (55.8) | ||
Pension and Post-retirement Activity | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (142.1) | (159.8) | ||
OCI before reclassifications | [1] | (3.7) | (3.3) | |
Reclassifications to earnings | 1.7 | 1.8 | ||
Ending balance | (144.1) | (161.3) | ||
Hedging Activity | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (2.1) | 1.2 | ||
OCI before reclassifications | [1] | (2.8) | (0.7) | |
Reclassifications to earnings | 1.0 | (0.6) | ||
Ending balance | $ (3.9) | $ (0.1) | ||
|
Accumulated Other Comprehensive Loss (Schedule of Reclassifications out of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications to earnings | $ (2.7) | $ (1.2) |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Gains and losses on cash flow hedges, foreign exchange contracts, before tax | (1.4) | 0.9 |
Gains and losses on cash flow hedges, foreign exchange contracts, tax | (0.4) | 0.3 |
Gains and losses on cash flow hedges, foreign exchange contracts, after tax | (1.0) | 0.6 |
Amortization of defined benefit pension and postretirement items, actuarial losses, before tax | (2.3) | (2.3) |
Amortization of defined benefit pension and postretirement items, settlement loss, before tax | 0.0 | 0.2 |
Amortization of defined benefit pension and postretirement items, before tax | (2.3) | (2.5) |
Amortization of defined benefit pension and postretirement items, tax | (0.6) | (0.7) |
Amortization of defined benefit pension and postretirement items, after tax | (1.7) | (1.8) |
Reclassifications to earnings | (2.7) | (1.2) |
Other expense (income), net | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Gains and losses on cash flow hedges, foreign exchange contracts, before tax | $ (1.4) | $ 0.9 |
Financial Instruments and Risk Management (Narrative) (Details) $ in Millions |
3 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2020
USD ($)
contracts
|
Dec. 31, 2019
USD ($)
|
Sep. 30, 2020
USD ($)
|
|||
Derivative [Line Items] | |||||
Long-term debt | $ 1,250.0 | $ 1,250.0 | |||
Fixed rate | |||||
Derivative [Line Items] | |||||
Long-term debt | 1,250.0 | 1,250.0 | |||
Fair value of long-term debt | $ 1,356.7 | 1,323.1 | |||
Not designated as hedge | FX contract | |||||
Derivative [Line Items] | |||||
Open foreign currency contracts | contracts | 6 | ||||
Derivative, notional amount | $ 45.0 | ||||
Cash flow hedge | Designated as hedge | FX contract | |||||
Derivative [Line Items] | |||||
Estimated fair value of derivative | $ (5.6) | $ (3.0) | |||
Open foreign currency contracts | contracts | 64 | ||||
Derivative, notional amount | $ 128.4 | ||||
Other expense (income), net | Not designated as hedge | FX contract | |||||
Derivative [Line Items] | |||||
Gain (loss) recognized in income | [1] | $ (1.1) | $ 0.3 | ||
|
Financial Instruments and Risk Management (Schedule of Fair Values of Derivative Instruments) (Details) - FX contract - USD ($) $ in Millions |
Dec. 31, 2020 |
Sep. 30, 2020 |
||
---|---|---|---|---|
Not designated as hedge | ||||
Derivatives, Fair Value [Line Items] | ||||
Estimated fair value of derivatives | [1] | $ (0.9) | $ (0.6) | |
Cash flow hedge | Designated as hedge | ||||
Derivatives, Fair Value [Line Items] | ||||
Estimated fair value of derivatives | [1] | $ (5.6) | $ (3.0) | |
|
Financial Instruments and Risk Management (Schedule of Gains and Losses on Derivative Instruments) (Details) - FX contract - USD ($) $ in Millions |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|||||
Designated as hedge | Cash flow hedge | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gain (loss) recognized in OCI | [1] | $ (4.0) | $ (0.9) | |||
Other expense (income), net | Designated as hedge | Cash flow hedge | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gain (loss) reclassified from AOCI into income (effective portion) | [1],[2] | (1.4) | 0.9 | |||
Other expense (income), net | Not designated as hedge | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gain (loss) recognized in income | [2] | $ 1.1 | $ (0.3) | |||
|
Financial Instruments and Risk Management (Schedule of Offsetting Assets and Liabilities) (Details) - FX contract - USD ($) $ in Millions |
Dec. 31, 2020 |
Sep. 30, 2020 |
||||
---|---|---|---|---|---|---|
Derivative [Line Items] | ||||||
Gross amounts of recognized assets | [1] | $ 0.0 | $ 0.0 | |||
Gross amounts of recognized liabilities | [2] | (6.5) | (3.7) | |||
Gross amounts offset in the balance sheet | [1] | 0.0 | 0.0 | |||
Gross amounts offset in the balance sheet | [2] | 0.0 | 0.1 | |||
Net amounts of assets presented in the balance sheet | [1] | 0.0 | 0.0 | |||
Net amounts of liabilities presented in the balance sheet | [2] | $ (6.5) | $ (3.6) | |||
|
Financial Instruments and Risk Management (Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis) (Details) - Recurring fair value measurement - Level 2 - USD ($) $ in Millions |
Dec. 31, 2020 |
Sep. 30, 2020 |
---|---|---|
Derivative [Line Items] | ||
Deferred compensation | $ (36.0) | $ (33.9) |
Derivatives - foreign currency contracts | (6.5) | (3.6) |
Net liabilities at estimated fair value | $ (42.5) | $ (37.5) |
Segment Data (Schedule of Segment Sales and Profitability) (Details) - USD ($) $ in Millions |
3 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | $ 451.1 | $ 454.0 | ||||||
Segment profit | 41.6 | 37.1 | ||||||
Restructuring and related costs | [1] | 4.4 | 8.0 | |||||
Acquisition and integration costs | [2] | 3.0 | 6.2 | |||||
Gain on sale of Infant and Pet Care business | 0.0 | (5.2) | ||||||
Feminine and Infant Care evaluation costs | [3] | 0.0 | 0.3 | |||||
Amortization of intangibles | 5.5 | 4.3 | ||||||
Interest and other expense, net | 16.4 | 12.7 | ||||||
Earnings before income taxes | 25.2 | 29.6 | ||||||
Wet Shave | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 279.1 | 277.0 | ||||||
Segment profit | 52.6 | 52.9 | ||||||
Sun and Skin Care | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 103.0 | 75.1 | ||||||
Segment profit | 5.2 | 0.1 | ||||||
Feminine Care | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 69.0 | 75.1 | ||||||
Segment profit | 8.8 | 13.1 | ||||||
All Other | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 0.0 | 26.8 | ||||||
Segment profit | 0.0 | 3.1 | ||||||
Total Segments | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Segment profit | 66.6 | 69.2 | ||||||
Corporate | ||||||||
Segment Reporting Information [Line Items] | ||||||||
General corporate and other expenses | 12.1 | 13.3 | ||||||
Project Fuel | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Restructuring and related costs | 4.4 | 8.0 | ||||||
Project Fuel | Wet Shave | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Restructuring and related costs | 1.1 | 2.8 | ||||||
Project Fuel | Sun and Skin Care | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Restructuring and related costs | 0.0 | 0.0 | ||||||
Project Fuel | Feminine Care | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Restructuring and related costs | 0.0 | 0.0 | ||||||
Project Fuel | Corporate | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Restructuring and related costs | 3.3 | 5.2 | ||||||
IT enablement | Project Fuel | Selling, general and administrative expenses | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Restructuring and related costs | 0.6 | $ 1.9 | ||||||
Inventory obsolescence | Project Fuel | Cost of products sold | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Restructuring and related costs | $ 0.1 | |||||||
|
Segment Data Segment Data (Schedule of Sales by Geographical Area) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Revenue from External Customer [Line Items] | ||
Net sales | $ 451.1 | $ 454.0 |
United States | ||
Revenue from External Customer [Line Items] | ||
Net sales | 250.8 | 251.1 |
International | ||
Revenue from External Customer [Line Items] | ||
Net sales | $ 200.3 | $ 202.9 |
Segment Data (Schedule of Supplemental Product Information) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Revenue from External Customer [Line Items] | ||
Net sales | $ 451.1 | $ 454.0 |
Razors and blades | ||
Revenue from External Customer [Line Items] | ||
Net sales | 246.3 | 244.3 |
Tampons, pads and liners | ||
Revenue from External Customer [Line Items] | ||
Net sales | 69.0 | 75.1 |
Sun care products | ||
Revenue from External Customer [Line Items] | ||
Net sales | 28.8 | 37.2 |
Grooming products | ||
Revenue from External Customer [Line Items] | ||
Net sales | 43.1 | 23.3 |
Wipes and other skin care products | ||
Revenue from External Customer [Line Items] | ||
Net sales | 31.1 | 14.6 |
Shaving gels and creams | ||
Revenue from External Customer [Line Items] | ||
Net sales | 32.8 | 32.7 |
Infant care and other | ||
Revenue from External Customer [Line Items] | ||
Net sales | $ 0.0 | $ 26.8 |
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