Segments

12 Months Ended

Sep. 30, 2019

SEGMENTS

During the first quarter of fiscal 2019, the Company reorganized its reportable segments in accordance with ASC Topic 280, “Segment Reporting.” At September 30, 2019, the Company’s reportable segments were as follows:


•	Post Consumer Brands: North American RTE cereal business;


•	Weetabix: the international (primarily U.K.) RTE cereal and muesli business;


•	Foodservice: primarily egg and potato products;


•	Refrigerated Retail: refrigerated retail products, inclusive of side dishes and egg, cheese and sausage products; and


•	Active Nutrition: RTD protein shakes, other RTD beverages, powders and nutrition bars.

Due to the level of integration between the Foodservice and Refrigerated Retail segments, it is impracticable to present additions to property and intangibles and total assets separately for each segment. An allocation has been made between the two segments for depreciation based on inventory costing. Where practicable, all fiscal 2018 and 2017 segment results reported herein have been reclassified to conform with the fiscal 2019 presentation. Additionally, effective October 1, 2018, 8th Avenue was no longer consolidated in the Company's financial statements and the Company’s 60.5% common equity retained interest in 8th Avenue is accounted for using the equity method. All historical segment results of 8th Avenue are reported herein as Post’s Private Brands segment.

Management evaluates each segment’s performance based on its segment profit, which is its earnings before income taxes and equity method earnings/loss before impairment of property, goodwill and other intangible assets, facility closure related costs, restructuring expenses, gain/loss on assets and liabilities held for sale, gain/loss on sales of businesses and facilities, interest expense and other unallocated corporate income and expenses.

In fiscal 2019, 2018 and 2017, Post’s external revenues were primarily generated by sales within the U.S.; foreign (primarily located in the U.K. and Canada) sales were approximately 13%, 13% and 8% of total net sales, respectively. Sales are attributed to individual countries based on the address to which the product is shipped.

As of September 30, 2019 and 2018, the majority of Post’s tangible long-lived assets were located in the U.S.; the remainder were located primarily in the U.K. and Canada which combined have a net carrying value of approximately $279.0 and $284.3, respectively. Additionally, the Company had tangible long-lived assets located in Canada of $12.4, which were classified as held for sale at September 30, 2018.

In the years ended September 30, 2019, 2018 and 2017, one customer, including its affiliates, accounted for $1,186.8, $1,100.6 and $914.2, respectively, or approximately 21%, 18% and 17%, respectively, of total net sales. Each of the segments sold products to this major customer or its affiliates.

The following tables present information about the Company’s reportable segments. In addition, the tables present net sales by product. Net sales for the year ended September 30, 2019 are presented under ASC Topic 606, “Revenue from Contracts with Customers,” and net sales for the years ended September 30, 2018 and 2017 are presented under ASC Topic 605, “Revenue Recognition.” Note that additions to property and intangibles excludes additions through business acquisitions (see Note 5).



			Year Ended September 30,
			2019			2018			2017
Net Sales
	Post Consumer Brands		$	1,875.9		$	1,831.7		$	1,742.5
	Weetabix		418.2			423.4			112.4
	Foodservice		1,627.4			1,548.2			1,340.6
	Refrigerated Retail		907.3			790.9			530.2
	Active Nutrition		854.4			827.5			713.2
	Private Brands		—			848.9			791.2
	Eliminations		(2.1		)	(13.4		)	(4.3		)
		Total	$	5,681.1		$	6,257.2		$	5,225.8
Segment Profit
	Post Consumer Brands		$	337.1		$	329.2		$	354.9
	Weetabix		94.8			87.2			14.5
	Foodservice		198.4			157.6			26.9
	Refrigerated Retail		95.1			90.0			83.7
	Active Nutrition		175.1			124.4			96.4
	Private Brands		—			60.8			58.1
		Total segment profit	900.5			849.2			634.5
General corporate expenses and other			169.6			136.8			87.7
Gain on sale of business			(126.6		)	—			—
Impairment of goodwill and other intangibles			63.3			124.9			26.5
Interest expense, net			322.4			387.3			314.8
Loss on extinguishment of debt, net			6.1			31.1			222.9
Expense (income) on swaps, net			306.6			(95.6		)	(91.8		)
Earnings before income taxes and equity method loss			$	159.1		$	264.7		$	74.4
Net sales by product
	Cereal and granola		$	2,293.3		$	2,351.2		$	1,963.9
	Eggs and egg products		1,578.4			1,542.8			1,419.1
	Side dishes		519.6			398.2			192.3
	Cheese and dairy		234.6			248.6			259.4
	Sausage		149.6			96.0			—
	Protein-based products and supplements		854.7			827.5			713.2
	Nut butters and dried fruit and nut		—			487.5			432.5
	Pasta		—			258.4			249.4
	Other		52.5			53.0			—
	Eliminations		(1.6		)	(6.0		)	(4.0		)
		Total	$	5,681.1		$	6,257.2		$	5,225.8
Additions to property and intangibles
	Post Consumer Brands		$	62.1		$	51.5		$	57.8
	Weetabix		37.7			26.3			13.6



	Foodservice and Refrigerated Retail		162.3		114.6		66.0
	Active Nutrition		3.2		5.0		3.9
	Private Brands		—		26.6		29.1
	Corporate		8.6		1.0		20.0
		Total	$	273.9	$	225.0	$	190.4
Depreciation and amortization
	Post Consumer Brands		$	117.4	$	122.0	$	112.4
	Weetabix		35.0		38.1		7.7
	Foodservice		111.8		105.4		98.6
	Refrigerated Retail		74.1		57.9		26.8
	Active Nutrition		25.3		25.9		25.3
	Private Brands		—		40.9		48.6
		Total segment depreciation and amortization	363.6		390.2		319.4
	Corporate and accelerated depreciation		16.0		8.2		3.7
		Total	$	379.6	$	398.4	$	323.1

			September 30,
			2019		2018		2017
Assets, end of year
	Post Consumer Brands		$	3,296.3	$	3,391.7	$	3,440.5
	Weetabix		1,779.1		1,853.3		2,048.9
	Foodservice and Refrigerated Retail		5,033.8		5,132.4		3,176.0
	Active Nutrition		594.0		559.3		581.3
	Private Brands		—		1,055.3		1,054.9
	Corporate		1,248.4		1,065.5		1,575.2
		Total	$	11,951.6	$	13,057.5	$	11,876.8