Segments

6 Months Ended

Mar. 31, 2021

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, acquisition earn out, 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 and six months ended March 31, 2021 and 2020, respectively, are presented below:

	For the Quarter Ended March 31,				For the Six Months Ended March 31,
	2021		2020		2021		2020
Net Sales
Americas	$	482.0	$	409.9	$	1,068.6	$	924.4
International	203.1		177.1		465.1		399.4
Total net sales	$	685.1	$	587.0	$	1,533.7	$	1,323.8
Segment Profit
Americas	$	132.3	$	101.8	$	288.2	$	231.0
International	39.6		40.4		99.4		92.6
Total segment profit	171.9		142.2		$	387.6	$	323.6
General corporate and other expenses (1)	(25.8)		(23.5)		(49.8)		(48.4)
Global marketing expense (2)	(9.5)		(5.6)		(18.9)		(11.7)
Research and development expense - Adjusted (3)	(8.1)		(7.7)		(15.6)		(16.2)
Amortization of intangible assets	(15.3)		(14.2)		(30.8)		(28.0)
Acquisition and integration costs (4)	(16.8)		(16.9)		(35.1)		(36.2)
Acquisition earn out (5)	(1.1)		—		(1.1)		—
Interest expense	(39.1)		(47.2)		(86.4)		(94.0)
Loss on extinguishment of debt	(70.0)		—		(75.7)		(4.2)
Other items, net - Adjusted (6)	0.1		(5.2)		(0.6)		(4.3)
Total (loss)/earnings before income taxes	$	(13.7)	$	21.9	$	73.6	$	80.6

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

(2) Global marketing expense for the quarters and six months ended March 31, 2021 includes $4.7 and $9.6 recorded in SG&A, respectively, and $4.8 and $9.3 recorded in Advertising and sales promotion expense, respectively, in the Consolidated (Condensed) Statement of Earnings and Comprehensive Income. The quarters and six months ended March 31, 2020 includes $2.6 and $5.5 recorded in SG&A, respectively, and $3.0 and $6.2 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 quarter and six months ended March 31, 2021 includes $0.9 and $1.0, respectively, and included $0.6 and $1.0 for the quarter and six months ended March 31, 2020, 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 March 31,				For the Six Months Ended March 31,
	2021		2020		2021		2020
Cost of products sold	7.3		8.3		$	15.0	$	15.2
Selling, general and administrative expense	8.6		8.1		19.0		19.2
Research and development expense	0.9		0.6		1.0		1.0
Other items, net	—		(0.1)		0.1		0.8
Total acquisition and integration costs	$	16.8	$	16.9	$	35.1	$	36.2

(5) This represents the estimated earn out achieved through March 31, 2021 under the incentive agreements entered into with the Formulations Acquisition and is recorded in SG&A on the Consolidated (Condensed) Statement of Earnings and Comprehensive Income.

(6) Other items, net for the six months ended March 31, 2021 on the Consolidated (Condensed) Statement of Earnings and Comprehensive Income included acquisition related costs of $0.1, which has been reclassified for purposes of the reconciliation above. For the quarter and six months ended March 31, 2020 on the Consolidated (Condensed) Statement of Earnings and Comprehensive Income included acquisition related income of $0.1 and costs of $0.8, 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 is an asset utilized outside of the operating segments.

Total Assets	March 31, 2021		September 30, 2020
Americas	$	1,137.2	$	1,238.0
International	671.6		668.5
Total segment assets	$	1,808.8	$	1,906.5
Corporate	168.6		106.8
Restricted cash	—		790.0
Goodwill and other intangible assets	2,960.2		2,925.0
Total assets	$	4,937.6	$	5,728.3