Segments

3 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segments

Segments

Operations for Energizer are managed via two major geographic reportable segments: Americas and International. Segment performance is evaluated based on segment operating profit, exclusive of general corporate expenses, share-based compensation costs, acquisition and integration activities, amortization costs, research & development costs and other items determined to be corporate in nature. Financial items, such as interest income and expense and loss on extinguishment of debt are managed on a global basis at the corporate level. The exclusion of substantially all acquisition and integration costs from segment results reflects management’s view on how it evaluates segment performance.

Energizer’s operating model includes a combination of standalone and shared business functions between the geographic segments, varying by country and region of the world. Shared functions include, but are not limited to,

IT, procurement and finance. Energizer applies a fully allocated cost basis, in which shared business functions are allocated between segments. Such allocations are estimates, and do not represent the costs of such services if performed on a standalone basis.

Segment sales and profitability for the quarters ended December 31, 2020 and 2019, respectively, are presented below:

	For the Quarter Ended December 31,
	2020		2019
Net Sales
Americas	$	586.6	$	514.5
International	262.0		222.3
Total net sales	$	848.6	$	736.8
Segment Profit
Americas	$	155.9	$	129.2
International	59.8		52.2
Total segment profit	$	215.7	$	181.4
General corporate and other expenses (1)	(24.0)		(24.9)
Global marketing expense (2)	(9.4)		(6.1)
Research and development expense - Adjusted (3)	(7.5)		(8.5)
Amortization of intangible assets	(15.5)		(13.8)
Acquisition and integration costs (4)	(18.3)		(19.3)
Interest expense	(47.3)		(46.8)
Loss on extinguishment of debt	(5.7)		(4.2)
Other items, net - Adjusted (5)	(0.7)		0.9
Total earnings before income taxes	$	87.3	$	58.7

(1) Included in SG&A in the Consolidated (Condensed) Statement of Earnings and Comprehensive Income.

(2) Global marketing expense for the quarters ended December 31, 2020 and 2019 includes $4.9 and $2.9 recorded in SG&A, respectively, and $4.5 and $3.2 recorded in Advertising and sales promotion expense, respectively, in the Consolidated (Condensed) Statement of Earnings and Comprehensive Income.

(3) Research and development expense for the quarters ended December 31, 2020 and 2019 includes $0.1 and $0.4, respectively, of acquisition and integration costs which have been reclassified for purposes of the reconciliation above.

(4) Acquisition and integration costs were included in the following lines in the Consolidated (Condensed) Statement of Earnings and Comprehensive Income:

	For the Quarter Ended December 31,
	2020		2019
Cost of products sold	$	7.7	$	6.9
Selling, general and administrative expense	10.4		11.1
Research and development expense	0.1		0.4
Other items, net	0.1		0.9
Total acquisition and integration costs	$	18.3	$	19.3

(5)    Other items, net for the quarters ended December 31, 2020 and 2019 on the Consolidated (Condensed) Statement of Earnings and Comprehensive Income included acquisition related costs of $0.1 and $0.9, respectively, which has been reclassified for purposes of the reconciliation above.

Corporate assets shown in the following table include all financial instruments, pension assets, amounts indemnified by Spectrum per the purchase agreements and tax asset balances that are managed outside of operating segments. In addition, the Restricted cash held at September 30, 2020 are assets outside of the operating segments.

Total Assets	December 31, 2020		September 30, 2020
Americas	$	1,124.2	$	1,238.0
International	713.5		668.5
Total segment assets	$	1,837.7	$	1,906.5
Corporate	117.0		106.8
Restricted cash	—		790.0
Goodwill and other intangible assets	2,974.4		2,925.0
Total assets	$	4,929.1	$	5,728.3