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Related Party Transactions
6 Months Ended
Mar. 31, 2020
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions

On January 28, 2019, the Company completed the Auto Care Acquisition from Spectrum, which included Energizer stock consideration. In accordance with the terms of our Shareholder Agreement with Spectrum, Spectrum has the right to sell such shares on or after January 28, 2020, including through one or more registered secondary offerings. Upon Spectrum’s written request that is not withdrawn, Energizer is obligated to use commercially reasonable efforts to file a shelf registration statement covering the resale by Spectrum of its Energizer common stock. As of March 31, 2020, Spectrum owns 4.3 million shares, or 6.3% of the Company's outstanding common shares.

Following the completion of the Battery and Auto Care Acquisitions, the Company and Spectrum have entered into transition service agreements (TSA) and reverse TSA. Under the agreements, Energizer and Spectrum will provide each other certain specified back office support services on a transitional basis, including among other things, payroll and other human resource services, information systems as well as accounting support.

The charges for the transition services are generally intended to allow the providing company to fully recover the allocated direct costs of providing the services, plus all out-of-pocket costs and expenses, and including a nominal profit. As of March 31, 2020, the Company has exited most of the TSA and reverse TSA. The Company still has certain information systems and back office support agreements that will continue throughout fiscal 2020 as the Company continues its integration of its information systems.

During the quarter and six months ended March 31, 2020, the Company paid $0.5 and $1.1, respectively to Spectrum related to rent for office space at their Middleton, Wisconsin headquarters.

For the quarter ended March 31, 2020, the Company incurred expenses of $1.9 in SG&A and $0.1 in Cost of products sold. For the six months ended March 31, 2020, the Company incurred expenses of $6.3 in SG&A and $0.3 in Cost of products sold. The Company incurred expense of $5.0 in SG&A and $0.4 in COGS during the quarter and six months ended March 31, 2019.

The Company also recorded income of $0.1 and $0.4 in Other items, net related to the reverse transaction services agreements provided for the quarter and six months ended March 31, 2020, respectively. The Company recorded income of $0.1 in Other items, net related to the reverse transaction services agreements provided for the quarter and six months ended March 31, 2019.

Related to these agreements, the Company had a payable to Spectrum of $1.4 and $2.6 in Other current liabilities and a receivable from Spectrum of $44.0 and $7.6 in Other current assets as of March 31, 2020 and September 30, 2019, respectively, as well as a receivable from Spectrum in Other assets of $16.8 as of March 31, 2020. The asset balances from Spectrum also include the tax indemnifications due from Spectrum under the initial purchase agreements.

The Company also entered into a supply agreement with Spectrum, ancillary to the Auto Care Acquisition that became effective upon the consummation of the acquisition. The supply agreement resulted in expense to the Company of $4.6 and $9.4 for the quarter and six months ended March 31, 2020 and $4.4 for the quarter and six months ended March 31, 2019. The Company recorded $1.9 and $0.1 in Accounts payable at March 31, 2020 and September 30, 2019, respectively, related to these purchases.

In discontinued operations, the Company recorded income of $3.8 for reverse TSA, and recorded expense of $0.3 for the six months ended March 31, 2020 and recorded income of $4.1 for reverse TSA, and recorded expense of $0.7 for the three and six months ended March 31, 2019. In addition, there was a payable due to Spectrum of $22.5 recorded in Liabilities held for sale and a receivable from Spectrum of $8.9 recorded in Assets held for sale as of September 30, 2019.