Segments

6 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segments

Segments

As of October 1, 2021, the Company changed its reportable operating segments from two geographical segments, previously Americas and International, to two product groupings, Battery & Lights and Auto Care. This change came with the completion of the Battery and Auto Care Acquisition integrations in fiscal 2022. The Company changed its reporting structure to better reflect what the chief operating decision maker is reviewing to make organizational decisions and resource allocations. The Company has recast the information for the quarter and six months ended March 31, 2021 to align with this presentation.

Segment performance is evaluated based on segment operating profit, exclusive of general corporate expenses (including share-based compensation costs), amortization of intangibles, acquisition and integration activities, including restructuring charges, acquisition earn out, the costs of exiting the Russian market 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 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 product segments, varying by country and region of the world. Shared functions include the sales and marketing functions, as well as human resources, IT and finance shared service costs. 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, 2022 and 2021 are presented below:

	For the Quarters Ended March 31,				For the Six Months Ended March 31,
	2022		2021		2022		2021
Net Sales
Batteries & Lights	$	516.5	$	542.9	$	1,256.7	$	1,286.8
Auto Care	168.9		142.2		275.0		246.9
Total net sales	$	685.4	$	685.1	$	1,531.7	$	1,533.7
Segment Profit
Batteries & Lights	$	95.3	$	125.4	$	263.7	$	305.9
Auto Care	24.3		28.9		24.1		47.2
Total segment profit	119.6		154.3		$	287.8	$	353.1
General corporate and other expenses (1)	(25.6)		(25.8)		(47.3)		(49.8)
Amortization of intangible assets	(15.2)		(15.3)		(30.4)		(30.8)
Acquisition and integration costs (2)	—		(16.8)		(16.5)		(35.1)
Acquisition earn out (3)	—		(1.1)		(1.1)		(1.1)
Interest expense	(38.3)		(39.1)		(75.3)		(86.4)
Exit of Russian market (4)	(14.0)		—		(14.0)		—
Loss on extinguishment of debt	—		(70.0)		—		(75.7)
Other items, net - Adjusted (5)	1.5		0.1		1.3		(0.6)
Total earnings/(loss) before income taxes	$	28.0	$	(13.7)	$	104.5	$	73.6
Depreciation and amortization
Batteries & Lights	$	11.7	$	11.9	$	23.9	$	23.9
Auto Care	2.3		1.7		4.3		4.0
Total segment depreciation and amortization	$	14.0	$	13.6	$	28.2	$	27.9
Amortization of intangible assets	15.2		15.3		30.4		30.8
Total depreciation and amortization	$	29.2	$	28.9	$	58.6	$	58.7

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

(2) Acquisition and integration costs were included in the following lines in the Consolidated (Condensed) Statement of Earnings and Comprehensive Income:

	For the Quarters Ended March 31,				For the Six Months Ended March 31,
Acquisition and integration costs	2022		2021		2022		2021
Cost of products sold	$	—	$	7.3	$	6.0	$	15.0
Selling, general and administrative expense	—		8.6		9.4		19.0
Research and development expense	—		0.9		1.1		1.0
Other items, net	—		—		—		0.1
Total acquisition and integration costs	$	—	$	16.8	$	16.5	$	35.1

(3) This represents the earn out achieved through March 31, 2022 and 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.

(4) These are the costs associated with the Company's exit of the Russian market during the second quarter of fiscal 2022. Exiting the Russian market resulted in the impairment of inventory recorded in Cost of products sold of $0.7, impairment of other assets and severance recorded in SG&A of $5.8 and currency impacts recorded in Other items, net of $7.5 on the Consolidated (Condensed) Statement of Earnings and Comprehensive Income.

(5) Other items, net on the Consolidated (Condensed) Statement of Earnings and Comprehensive Income included costs associated with the exit of the Russian market of $7.5 for the three and six months ended March 31, 2022 and included acquisition related costs of $0.1 for the six months ended March 31, 2021, which have been reclassified for the reconciliation above.

Corporate assets shown in the following table include cash, all financial instruments, pension assets, amounts indemnified by Spectrum per the purchase agreements and tax asset balances that are managed outside of operating segments. The asset balances as of September 30, 2021 have been recast to align with our new reportable segments.

Total Assets	March 31, 2022		September 30, 2021
Batteries & Lights	$	1,377.3	$	1,302.7
Auto Care	459.2		367.8
Total segment assets	$	1,836.5	$	1,670.5
Corporate	434.0		411.9
Goodwill and other intangible assets	2,889.4		2,925.1
Total assets	$	5,159.9	$	5,007.5