Related Party Transactions

3 Months Ended

Dec. 31, 2019

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 of 5.3 million shares. 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 Upon Spectrum’s written request that is not withdrawn, Energizer is obligated to use commercially reasonable efforts to file a shelf registration statement covering the resale by Spectrum of its Energizer common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 December 31, 2020, Spectrum owns 0.3 million shares, or 0.4% of the Company's outstanding common shares.

Following the completion of the Battery and Auto Care Acquisitions, the Company and Spectrum entered into transition service agreements (TSA) and reverse TSA. Under the agreements, Energizer and Spectrum 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 December 31, 2020, the Company has exited all TSA and reverse TSA and had very limited activity under these agreements during the three months ended December 31, 2020.

For the quarter ended December 31, 2019, the Company incurred expenses of $4.4 in SG&A and $0.2 in Cost of products sold. The Company also recorded income of $0.3 in Other items, net related to the reverse transaction services agreements provided for the quarter ended December 31, 2019

Related to these agreements, the Company had a payable to Spectrum of $1.6 in Other current liabilities at September 30, 2020. In addition, the Company had receivables from Spectrum of $14.2 and $30.6 in Other current assets as of December 31, 2020 and September 30, 2020, respectively, and a receivable from Spectrum in Other assets of $18.4 as of December 31, 2020 and September 30, 2020. The asset balances from Spectrum were primarily related to the tax indemnifications due from Spectrum under the initial purchase agreements, as well as activity related to the TSA.

During the quarters ended December 31, 2020 and 2019, the Company paid $0.6 and $0.6, respectively, to Spectrum related to rent for office space at their Middleton, Wisconsin headquarters.

The Company 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 $2.4 and $4.8 for the quarters ended December 31, 2020 and 2019, respectively. The Company recorded $1.3 and $2.7 in Accounts payable at December 31, 2020 and September 30, 2020, 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 quarter ended December 31, 2019.