SEGMENT RESULTS

3 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

SEGMENT RESULTS

SEGMENT RESULTS

The Company operates through strategic business units (SBUs) which are organized into operating segments. Operating segments are then aggregated into four reportable segments: Health and Wellness, Household, Lifestyle and International. Operating segments not aggregated into a reportable segment are reflected in Corporate and Other.

Corporate and Other includes certain non-allocated administrative costs and various other non-operating income and expenses, as well as the results of the Vitamins, Minerals and Supplements (VMS) business. Assets in Corporate and Other include cash and cash equivalents, prepaid expenses and other current assets, property and equipment, operating lease right-of-use assets, other long-term assets and deferred taxes, as well as the assets related to the VMS business.

The principle measure of segment profitability used by management is segment adjusted earnings (losses) before interest and income taxes (segment adjusted EBIT). Segment adjusted EBIT is defined as earnings (losses) before income taxes excluding interest income, interest expense and other significant items that are nonrecurring or unusual (such as charges relating to the cyberattack, asset impairments, charges related to the streamlined operating model, charges related to the digital capabilities and productivity enhancements investment, significant losses/(gains) related to acquisitions and other nonrecurring or unusual items impacting comparability).

The tables below present reportable segment information and a reconciliation of the segment information to the Company’s consolidated net sales and earnings (losses) before income taxes, with amounts that are not allocated to the reportable segments reflected in Corporate and Other.

	Net sales
	Three months ended
	9/30/2023		9/30/2022
Health and Wellness	$	504	$	657
Household	325		423
Lifestyle	229		320
International	270		285
Corporate and Other	58		55
Total	$	1,386	$	1,740
	Segment adjusted EBIT
	Three months ended
	9/30/2023		9/30/2022
Health and Wellness	$	104	$	133
Household	(4)		22
Lifestyle	19		60
International	34		23
Corporate and Other	(62)		(63)
Total	$	91	$	175
Interest income	10		2
Interest expense	(21)		(22)
Cyberattack costs (1)	(24)		—
Streamlined operating model (2)	—		(19)
Digital capabilities and productivity enhancements investment (3)	(27)		(20)
Earnings before income taxes	$	29	$	116

(1)Represents incremental costs related to the cyberattack detailed in Note 2. For informational purposes the following table provides the approximate cyberattack costs corresponding to the Company’s reportable segments as a percentage of total costs:

	Three months ended
	9/30/2023
Health and Wellness	22	%
Household	11
Lifestyle	14
International	1
Corporate and Other	52
Total	100	%

(2)Represents restructuring and related implementation costs, net for the streamlined operating model of $0 and $19 for the three months ended September 30, 2023 and 2022, respectively. For informational purposes the following table provides the approximate restructuring and related implementation costs, net corresponding to the Company’s reportable segments as a percentage of the total costs:

	Three months ended		Three months ended		Inception to date ended
	9/30/2023		9/30/2022		9/30/2023
Health and Wellness	—	%	6	%	6	%
Household	—		—		1
Lifestyle	—		5		3
International	—		19		16
Corporate and Other	—		70		74
Total	—	%	100	%	100	%

(3)Represents expenses related to the Company’s digital capabilities and productivity enhancements investment corresponding to Corporate and Other.

All intersegment sales are eliminated and are not included in the Company’s reportable segments’ net sales.

Net sales to the Company’s largest customer, Walmart Inc. and its affiliates, as a percentage of consolidated net sales, were 27% for both the three months ended September 30, 2023 and 2022.

The following table provides Net sales as a percentage of the Company’s consolidated net sales, disaggregated by operating segment, for the periods indicated:

	Net sales
	Three months ended
	9/30/2023		9/30/2022
Cleaning	32	%	33	%
Professional Products	4		5
Health and Wellness	36	%	38	%
Bags and Wraps	11		11
Cat Litter	8		8
Grilling	5		5
Household	24	%	24	%
Food	9		10
Natural Personal Care	3		4
Water Filtration	5		5
Lifestyle	17	%	19	%
International	19	%	16	%
Corporate and Other	4	%	3	%
Total	100	%	100	%