Divestment

3 Months Ended

Dec. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

As discussed in Note 1, Description of Business and Basis of Presentation, the Divestment Business was classified as held for sale in the accompanying Consolidated (Condensed) Balance Sheets and as discontinued operations in the accompanying Consolidated (Condensed) Statement of Earnings and Comprehensive Income. On May 29, 2019, the Company entered into a definitive agreement with VARTA AG to sell the Divestment Business for €180.0, subject to approval by the European Commission and certain purchase price adjustments.

The following table summarizes the assets and liabilities of the Divestment Business classified as held for sale as of December 31, 2019 and September 30, 2019:



	December 31, 2019		September 30, 2019
Assets
Trade receivables	$	60.1	$	50.9
Inventories	44.8		59.8
Other current assets	34.7		41.5
Property, plant and equipment, net	83.7		78.8
Goodwill	47.2		50.5
Other intangible assets, net	503.9		489.0
Other assets	31.1		21.2
Assets held for sale	$	805.5	$	791.7

Liabilities
Current portion of capital leases	$	5.5	$	5.3
Accounts payable	29.5		45.9
Notes payable	0.6		0.6
Other current liabilities	90.8		99.8
Long-term debt	22.9		23.5
Long term deferred tax liability	166.0		169.9
Other liabilities (1)	71.8		57.9
Liabilities held for sale	$	387.1	$	402.9

(1) Included in Other liabilities are pension liabilities of $44.0 and $42.4 related to the Divestment Business as of December 31, 2019 and September 30, 2019, respectively.

The following table summarizes the components of Net earnings from discontinued operations in the accompanying Consolidated (Condensed) Statement of Earnings and Comprehensive Income for the quarter ended December 31, 2019. As the Company acquired the business on January 2, 2019, there is no activity on the Consolidated (Condensed) Statement of Earnings and Comprehensive Income for the quarter ended December 31, 2018:



	For the Quarter Ended
	December 31, 2019
Net sales	$	115.8
Cost of products sold	88.2
Gross profit	27.6
Selling, general and administrative expense	17.4
Advertising and sales promotion expense	0.3
Research and development expense	0.8
Interest expense	5.2
TSA income	(3.8		)
Other items, net	(0.1		)
Earnings before income taxes	7.8
Income tax expense	7.5
Net earnings from discontinued operations	$	0.3

Included in the Net earnings from discontinued operations for the quarter ended December 31, 2019 are divestment related pre-tax costs of $1.1 and allocated pre-tax interest expense of $5.0.

Subsequent to the quarter, on January 2, 2020, the Company sold the business to VARTA AG and received initial combined cash proceeds of approximately $345 from Varta AG and Spectrum. Spectrum contributed proceeds pursuant to the terms of the Battery Acquisition agreement. The initial proceeds received are subject to contractual purchase price adjustments between the Company and VARTA AG. The Company is evaluating the impact of the divestiture and currently estimates a pre-tax loss of between $80 and $90 based on the preliminary cash proceeds.