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(Mark One)
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☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Missouri
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36-4802442
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(State or other jurisdiction of
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(I. R. S. Employer
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incorporation or organization)
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Identification No.)
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|||
533 Maryville University Drive
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St. Louis,
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Missouri
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63141
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(Address of principal executive offices)
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(Zip Code)
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(314)
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985-2000
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(Registrant’s telephone number, including area code)
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Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
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Common Stock, par value $.01 per share
|
ENR
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New York Stock Exchange
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7.50% Series A Mandatory Convertible Preferred Stock, par value $.01 per share
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ENR PRA
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New York Stock Exchange
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Large accelerated filer
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☒
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Accelerated filer
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☐
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Non-accelerated filer
|
☐
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Smaller reporting company
|
☐
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Emerging growth company
|
☐
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INDEX
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Page
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PART I — FINANCIAL INFORMATION
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|
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Item 1. Financial Statements (Unaudited)
|
|
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Consolidated Statements of Earnings and Comprehensive Income (Condensed) for the Quarter and Nine Months Ended June 30, 2019 and 2018
|
|
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Consolidated Balance Sheets (Condensed) as of June 30, 2019 and September 30, 2018
|
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Consolidated Statements of Cash Flows (Condensed) for the Nine Months Ended June 30, 2019 and 2018
|
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Consolidated Statements of Shareholders' Equity/(Deficit) (Condensed) for the Nine Months Ended June 30, 2019 and 2018
|
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Notes to Consolidated (Condensed) Financial Statements
|
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
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Item 3. Quantitative and Qualitative Disclosures About Market Risk
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Item 4. Controls and Procedures
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PART II — OTHER INFORMATION
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Item 1. Legal Proceedings
|
|
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Item 1A. Risk Factors
|
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
|
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Item 6. Exhibits
|
|
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EXHIBIT INDEX
|
|
|
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SIGNATURES
|
|
For the Quarter Ended June 30,
|
|
For the Nine Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net sales
|
$
|
647.2
|
|
|
$
|
392.8
|
|
|
$
|
1,775.5
|
|
|
$
|
1,340.5
|
|
Cost of products sold
|
400.9
|
|
|
216.7
|
|
|
1,059.5
|
|
|
717.6
|
|
||||
Gross profit
|
246.3
|
|
|
176.1
|
|
|
716.0
|
|
|
622.9
|
|
||||
Selling, general and administrative expense
|
127.6
|
|
|
111.9
|
|
|
373.5
|
|
|
315.3
|
|
||||
Advertising and sales promotion expense
|
34.3
|
|
|
22.9
|
|
|
99.9
|
|
|
81.1
|
|
||||
Research and development expense
|
9.5
|
|
|
5.2
|
|
|
23.7
|
|
|
15.9
|
|
||||
Amortization of intangible assets
|
14.4
|
|
|
2.8
|
|
|
30.1
|
|
|
8.4
|
|
||||
Gain on sale of real estate
|
—
|
|
|
(4.6
|
)
|
|
—
|
|
|
(4.6
|
)
|
||||
Interest expense
|
51.9
|
|
|
17.7
|
|
|
177.3
|
|
|
47.6
|
|
||||
Other items, net
|
(0.8
|
)
|
|
(11.3
|
)
|
|
(13.9
|
)
|
|
(9.1
|
)
|
||||
Earnings before income taxes
|
9.4
|
|
|
31.5
|
|
|
25.4
|
|
|
168.3
|
|
||||
Income tax provision
|
0.2
|
|
|
7.7
|
|
|
7.7
|
|
|
76.3
|
|
||||
Earnings from continuing operations
|
9.2
|
|
|
23.8
|
|
|
17.7
|
|
|
92.0
|
|
||||
Net loss from discontinued operations, net of income tax expense of $0.4 and a benefit of $2.5 for the quarter and nine months ended June 30, 2019, respectively.
|
(1.8
|
)
|
|
—
|
|
|
(12.8
|
)
|
|
—
|
|
||||
Net earnings
|
7.4
|
|
|
23.8
|
|
|
4.9
|
|
|
92.0
|
|
||||
Mandatory convertible preferred stock dividends
|
(4.4
|
)
|
|
—
|
|
|
(7.7
|
)
|
|
—
|
|
||||
Net earnings/(loss) attributable to common shareholders
|
$
|
3.0
|
|
|
$
|
23.8
|
|
|
$
|
(2.8
|
)
|
|
$
|
92.0
|
|
|
|
|
|
|
|
|
|
||||||||
Basic net earnings per common share - continuing operations
|
$
|
0.07
|
|
|
$
|
0.40
|
|
|
$
|
0.15
|
|
|
$
|
1.54
|
|
Basic net loss per common share - discontinued operations
|
(0.03
|
)
|
|
—
|
|
|
(0.19
|
)
|
|
—
|
|
||||
Basic net earnings/(loss) per common share
|
$
|
0.04
|
|
|
$
|
0.40
|
|
|
$
|
(0.04
|
)
|
|
$
|
1.54
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted net earnings per common share - continuing operations
|
$
|
0.07
|
|
|
$
|
0.39
|
|
|
$
|
0.15
|
|
|
$
|
1.50
|
|
Diluted net loss per common share - discontinued operations
|
(0.03
|
)
|
|
—
|
|
|
(0.19
|
)
|
|
—
|
|
||||
Diluted net earnings/(loss) per common share
|
$
|
0.04
|
|
|
$
|
0.39
|
|
|
$
|
(0.04
|
)
|
|
$
|
1.50
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares of common stock - Basic
|
69.6
|
|
|
59.7
|
|
|
65.5
|
|
|
59.9
|
|
||||
Weighted average shares of common stock - Diluted
|
70.6
|
|
|
61.4
|
|
|
66.5
|
|
|
61.4
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Statements of Comprehensive Income:
|
|
|
|
|
|
|
|
||||||||
Net earnings
|
$
|
7.4
|
|
|
$
|
23.8
|
|
|
$
|
4.9
|
|
|
$
|
92.0
|
|
Other comprehensive (loss)/income, net of tax (benefit)/expense
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
(12.3
|
)
|
|
(31.5
|
)
|
|
4.3
|
|
|
(14.9
|
)
|
||||
Pension activity, net of tax of $0.2 and $0.8, for the quarter and nine months ended June 30, 2019, respectively, and $0.4 and $1.2 for the quarter and nine months ended June 30, 2018, respectively.
|
0.9
|
|
|
3.0
|
|
|
3.0
|
|
|
4.8
|
|
||||
Deferred (loss)/gain on hedging activity, net of tax of ($1.9) and ($3.7), for the quarter and nine months ended June 30, 2019, respectively, and $2.1 and $4.7 for the quarter and nine months ended June 30, 2018, respectively.
|
(6.4
|
)
|
|
6.7
|
|
|
(10.8
|
)
|
|
13.0
|
|
||||
Total comprehensive (loss)/income
|
$
|
(10.4
|
)
|
|
$
|
2.0
|
|
|
$
|
1.4
|
|
|
$
|
94.9
|
|
Assets
|
June 30,
2019 |
|
September 30,
2018 |
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
206.4
|
|
|
$
|
522.1
|
|
Trade receivables, less allowance for doubtful accounts of $6.1 and $4.0, respectively
|
341.1
|
|
|
230.4
|
|
||
Inventories
|
524.3
|
|
|
323.1
|
|
||
Other current assets
|
196.0
|
|
|
95.5
|
|
||
Assets held for sale
|
807.6
|
|
|
—
|
|
||
Total current assets
|
2,075.4
|
|
|
1,171.1
|
|
||
Restricted cash
|
—
|
|
|
1,246.2
|
|
||
Property, plant and equipment, net
|
361.0
|
|
|
166.7
|
|
||
Goodwill
|
1,062.4
|
|
|
244.2
|
|
||
Other intangible assets, net
|
1,922.2
|
|
|
232.7
|
|
||
Deferred tax asset
|
52.9
|
|
|
36.9
|
|
||
Other assets
|
103.8
|
|
|
81.0
|
|
||
Total assets
|
$
|
5,577.7
|
|
|
$
|
3,178.8
|
|
|
|
|
|
||||
Liabilities and Shareholders' Equity
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Current maturities of long-term debt
|
$
|
10.0
|
|
|
$
|
4.0
|
|
Current portion of capital leases
|
1.6
|
|
|
—
|
|
||
Notes payable
|
41.5
|
|
|
247.3
|
|
||
Accounts payable
|
308.4
|
|
|
228.9
|
|
||
Other current liabilities
|
359.2
|
|
|
271.0
|
|
||
Liabilities held for sale
|
384.9
|
|
|
—
|
|
||
Total current liabilities
|
1,105.6
|
|
|
751.2
|
|
||
Long-term debt
|
3,493.2
|
|
|
976.1
|
|
||
Long-term debt held in escrow
|
—
|
|
|
1,230.7
|
|
||
Other liabilities
|
408.2
|
|
|
196.3
|
|
||
Total liabilities
|
5,007.0
|
|
|
3,154.3
|
|
||
Shareholders' equity
|
|
|
|
||||
Common stock
|
0.7
|
|
|
0.6
|
|
||
Mandatory convertible preferred stock
|
—
|
|
|
—
|
|
||
Additional paid-in capital
|
867.2
|
|
|
217.8
|
|
||
Retained earnings
|
109.5
|
|
|
177.3
|
|
||
Treasury stock
|
(161.4
|
)
|
|
(129.4
|
)
|
||
Accumulated other comprehensive loss
|
(245.3
|
)
|
|
(241.8
|
)
|
||
Total shareholders' equity
|
570.7
|
|
|
24.5
|
|
||
Total liabilities and shareholders' equity
|
$
|
5,577.7
|
|
|
$
|
3,178.8
|
|
|
For the Nine Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
Cash Flow from Operating Activities
|
|
|
|
||||
Net earnings
|
$
|
4.9
|
|
|
$
|
92.0
|
|
Loss from discontinued operations, net of tax
|
(12.8
|
)
|
|
—
|
|
||
Net earnings from continuing operations
|
17.7
|
|
|
92.0
|
|
||
Depreciation and amortization
|
70.8
|
|
|
33.8
|
|
||
Deferred income taxes
|
(1.2
|
)
|
|
11.1
|
|
||
Share-based compensation expense
|
20.8
|
|
|
21.0
|
|
||
Gain on sale of real estate
|
—
|
|
|
(4.6
|
)
|
||
Mandatory transition tax
|
0.7
|
|
|
28.2
|
|
||
Inventory step up
|
33.7
|
|
|
—
|
|
||
Non-cash items included in income, net
|
(3.0
|
)
|
|
(2.1
|
)
|
||
Other, net
|
(16.7
|
)
|
|
(7.8
|
)
|
||
Changes in current assets and liabilities used in operations
|
(92.4
|
)
|
|
16.4
|
|
||
Net cash from operating activities from continuing operations
|
30.4
|
|
|
188.0
|
|
||
Net cash used by operating activities from discontinued operations
|
(23.4
|
)
|
|
—
|
|
||
Net cash from operating activities
|
7.0
|
|
|
188.0
|
|
||
|
|
|
|
||||
Cash Flow from Investing Activities
|
|
|
|
||||
Capital expenditures
|
(36.4
|
)
|
|
(17.2
|
)
|
||
Proceeds from sale of assets
|
0.1
|
|
|
6.1
|
|
||
Acquisitions, net of cash acquired
|
(2,453.8
|
)
|
|
—
|
|
||
Net cash used by investing activities from continuing operations
|
(2,490.1
|
)
|
|
(11.1
|
)
|
||
Net cash used by investing activities from discontinued operations
|
(403.1
|
)
|
|
—
|
|
||
Net cash used by investing activities
|
(2,893.2
|
)
|
|
(11.1
|
)
|
||
|
|
|
|
||||
Cash Flow from Financing Activities
|
|
|
|
||||
Cash proceeds from issuance of debt with original maturities greater than 90 days
|
1,800.0
|
|
|
—
|
|
||
Payments on debt with maturities greater than 90 days
|
(513.8
|
)
|
|
(3.0
|
)
|
||
Net (decrease)/increase in debt with original maturities of 90 days or less
|
(204.5
|
)
|
|
70.6
|
|
||
Debt issuance costs
|
(40.1
|
)
|
|
(1.4
|
)
|
||
Net proceeds from issuance of mandatory convertible preferred stock
|
199.5
|
|
|
—
|
|
||
Net proceeds from issuance of common stock
|
205.3
|
|
|
—
|
|
||
Dividends paid on mandatory convertible preferred stock
|
(4.0
|
)
|
|
—
|
|
||
Dividends paid on common stock
|
(61.7
|
)
|
|
(52.3
|
)
|
||
Common stock purchased
|
(45.0
|
)
|
|
(50.0
|
)
|
||
Taxes paid for withheld share-based payments
|
(7.2
|
)
|
|
(1.8
|
)
|
||
Net cash from/(used by) financing activities from continuing operations
|
1,328.5
|
|
|
(37.9
|
)
|
||
Net cash used by financing activities from discontinued operations
|
(2.9
|
)
|
|
—
|
|
||
Net cash from/(used by) financing activities
|
1,325.6
|
|
|
(37.9
|
)
|
||
|
|
|
|
||||
Effect of exchange rate changes on cash
|
(1.3
|
)
|
|
(6.1
|
)
|
||
|
|
|
|
||||
Net (decrease)/increase in cash, cash equivalents, and restricted cash from continuing operations
|
(1,132.5
|
)
|
|
132.9
|
|
||
Net decrease in cash, cash equivalents, and restricted cash from discontinued operations
|
(429.4
|
)
|
|
—
|
|
||
Net (decrease)/increase in cash, cash equivalents, and restricted cash
|
(1,561.9
|
)
|
|
132.9
|
|
||
Cash, cash equivalents, and restricted cash, beginning of period
|
1,768.3
|
|
|
378.0
|
|
||
Cash, cash equivalents, and restricted cash, end of period
|
$
|
206.4
|
|
|
$
|
510.9
|
|
|
Number of Shares
|
|
Amount
|
|
|
|
|
|
||||||||||||||||||
|
Preferred Stock
|
Common Stock
|
|
Preferred Stock
|
Common Stock
|
Additional Paid-in Capital
|
Retained Earnings
|
Treasury Stock
|
Accumulated Other Comprehensive (Loss)/Income
|
Total Shareholders' Equity/(Deficit)
|
||||||||||||||||
September 30, 2018
|
—
|
|
59,608
|
|
|
$
|
—
|
|
$
|
0.6
|
|
$
|
217.8
|
|
$
|
177.3
|
|
$
|
(129.4
|
)
|
$
|
(241.8
|
)
|
$
|
24.5
|
|
Net earnings from continuing operations
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
70.8
|
|
—
|
|
—
|
|
70.8
|
|
|||||||
Share based payments
|
—
|
|
—
|
|
|
—
|
|
—
|
|
6.5
|
|
—
|
|
—
|
|
—
|
|
6.5
|
|
|||||||
Activity under stock plans
|
—
|
|
290
|
|
|
—
|
|
—
|
|
(16.1
|
)
|
(3.6
|
)
|
12.6
|
|
—
|
|
(7.1
|
)
|
|||||||
Dividends to shareholders ($0.30 per share)
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
(18.4
|
)
|
—
|
|
—
|
|
(18.4
|
)
|
|||||||
Other comprehensive loss
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(5.9
|
)
|
(5.9
|
)
|
|||||||
December 31, 2018
|
—
|
|
59,898
|
|
|
$
|
—
|
|
$
|
0.6
|
|
$
|
208.2
|
|
$
|
226.1
|
|
$
|
(116.8
|
)
|
$
|
(247.7
|
)
|
$
|
70.4
|
|
Net loss from continuing operations
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
(62.3
|
)
|
—
|
|
—
|
|
(62.3
|
)
|
|||||||
Net loss from discontinued operations
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
(11.0
|
)
|
—
|
|
—
|
|
(11.0
|
)
|
|||||||
Share based payments
|
—
|
|
—
|
|
|
—
|
|
—
|
|
7.6
|
|
—
|
|
—
|
|
—
|
|
7.6
|
|
|||||||
Issuance of common stock
|
—
|
|
9,966
|
|
|
|
0.1
|
|
445.7
|
|
—
|
|
—
|
|
—
|
|
445.8
|
|
||||||||
Issuance of preferred stock
|
2,156
|
|
—
|
|
|
—
|
|
—
|
|
199.5
|
|
—
|
|
—
|
|
—
|
|
199.5
|
|
|||||||
Activity under stock plans
|
—
|
|
11
|
|
|
—
|
|
—
|
|
(0.5
|
)
|
—
|
|
0.5
|
|
—
|
|
—
|
|
|||||||
Dividends to common shareholders ($0.30 per share)
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
(21.6
|
)
|
—
|
|
—
|
|
(21.6
|
)
|
|||||||
Dividends to preferred shareholders ($1.83 per share)
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
(3.3
|
)
|
—
|
|
—
|
|
(3.3
|
)
|
|||||||
Other comprehensive income
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
20.2
|
|
20.2
|
|
|||||||
March 31, 2019
|
2,156
|
|
69,875
|
|
|
$
|
—
|
|
$
|
0.7
|
|
$
|
860.5
|
|
$
|
127.9
|
|
$
|
(116.3
|
)
|
$
|
(227.5
|
)
|
$
|
645.3
|
|
Net earnings from continuing operations
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
9.2
|
|
—
|
|
—
|
|
9.2
|
|
|||||||
Net loss from discontinued operations
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
(1.8
|
)
|
—
|
|
—
|
|
(1.8
|
)
|
|||||||
Share based payments
|
—
|
|
—
|
|
|
—
|
|
—
|
|
6.7
|
|
—
|
|
—
|
|
—
|
|
6.7
|
|
|||||||
Common stock purchased
|
—
|
|
(1,036
|
)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(45.0
|
)
|
—
|
|
(45.0
|
)
|
|||||||
Activity under stock plans
|
—
|
|
1
|
|
|
—
|
|
—
|
|
|
|
—
|
|
(0.1
|
)
|
—
|
|
(0.1
|
)
|
|||||||
Dividends to common shareholders ($0.30 per share)
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
(21.4
|
)
|
—
|
|
—
|
|
(21.4
|
)
|
|||||||
Dividends to preferred shareholders ($1.875 per share)
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
(4.4
|
)
|
—
|
|
—
|
|
(4.4
|
)
|
|||||||
Other comprehensive loss
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(17.8
|
)
|
(17.8
|
)
|
|||||||
June 30, 2019
|
2,156
|
|
68,840
|
|
|
$
|
—
|
|
$
|
0.7
|
|
$
|
867.2
|
|
$
|
109.5
|
|
$
|
(161.4
|
)
|
$
|
(245.3
|
)
|
$
|
570.7
|
|
|
Number of Shares
|
|
Amount
|
|
|
|
|
|
||||||||||||||||||
|
Preferred Stock
|
Common Stock
|
|
Preferred Stock
|
Common Stock
|
Additional Paid-in Capital
|
Retained Earnings
|
Treasury Stock
|
Accumulated Other Comprehensive (Loss)/Income
|
Total Shareholders' Equity/(Deficit)
|
||||||||||||||||
September 30, 2017
|
—
|
|
60,709
|
|
|
$
|
—
|
|
$
|
0.6
|
|
$
|
196.7
|
|
$
|
198.7
|
|
$
|
(72.1
|
)
|
$
|
(238.8
|
)
|
$
|
85.1
|
|
Net earnings
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
60.4
|
|
—
|
|
—
|
|
60.4
|
|
|||||||
Adoption of ASU 2016-16
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
(59.2
|
)
|
—
|
|
—
|
|
(59.2
|
)
|
|||||||
Share based payments
|
—
|
|
—
|
|
|
—
|
|
—
|
|
6.7
|
|
—
|
|
—
|
|
—
|
|
6.7
|
|
|||||||
Common stock purchased
|
—
|
|
(1,126
|
)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(50.0
|
)
|
—
|
|
(50.0
|
)
|
|||||||
Activity under stock plans
|
—
|
|
91
|
|
|
—
|
|
—
|
|
(4.8
|
)
|
(0.8
|
)
|
3.8
|
|
—
|
|
(1.8
|
)
|
|||||||
Dividends to shareholders ($0.29 per share)
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
(18.7
|
)
|
—
|
|
—
|
|
(18.7
|
)
|
|||||||
Other comprehensive income
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
11.1
|
|
11.1
|
|
|||||||
December 31, 2017
|
—
|
|
59,674
|
|
|
$
|
—
|
|
$
|
0.6
|
|
$
|
198.6
|
|
$
|
180.4
|
|
$
|
(118.3
|
)
|
$
|
(227.7
|
)
|
$
|
33.6
|
|
Net earnings
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
7.8
|
|
—
|
|
—
|
|
7.8
|
|
|||||||
Adoption of ASU 2018-02
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
20.1
|
|
—
|
|
(20.1
|
)
|
—
|
|
|||||||
Share based payments
|
—
|
|
—
|
|
|
—
|
|
—
|
|
7.3
|
|
—
|
|
—
|
|
—
|
|
7.3
|
|
|||||||
Activity under stock plans
|
—
|
|
12
|
|
|
—
|
|
—
|
|
(0.5
|
)
|
—
|
|
0.6
|
|
—
|
|
0.1
|
|
|||||||
Dividends to shareholders ($0.29 per share)
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
(17.8
|
)
|
—
|
|
—
|
|
(17.8
|
)
|
|||||||
Other comprehensive income
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
13.7
|
|
13.7
|
|
|||||||
March 31, 2018
|
—
|
|
59,686
|
|
|
$
|
—
|
|
$
|
0.6
|
|
$
|
205.4
|
|
$
|
190.5
|
|
$
|
(117.7
|
)
|
$
|
(234.1
|
)
|
$
|
44.7
|
|
Net earnings
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
23.8
|
|
—
|
|
—
|
|
23.8
|
|
|||||||
Share based payments
|
—
|
|
—
|
|
|
—
|
|
—
|
|
7.0
|
|
—
|
|
—
|
|
—
|
|
7.0
|
|
|||||||
Deferred compensation plan
|
—
|
|
—
|
|
|
—
|
|
—
|
|
12.0
|
|
—
|
|
—
|
|
—
|
|
12.0
|
|
|||||||
Dividends to shareholders ($0.29 per share)
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
(17.9
|
)
|
—
|
|
—
|
|
(17.9
|
)
|
|||||||
Other comprehensive loss
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(21.8
|
)
|
(21.8
|
)
|
|||||||
June 30, 2018
|
—
|
|
59,686
|
|
|
$
|
—
|
|
$
|
0.6
|
|
$
|
224.4
|
|
$
|
196.4
|
|
$
|
(117.7
|
)
|
$
|
(255.9
|
)
|
$
|
47.8
|
|
|
For the Quarter Ended June 30,
|
|
For the Nine Months Ended June 30,
|
||||||||||||
Net Sales
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Batteries
|
$
|
457.2
|
|
|
$
|
350.1
|
|
|
$
|
1,398.5
|
|
|
$
|
1,204.9
|
|
Auto Care
|
160.8
|
|
|
24.1
|
|
|
289.9
|
|
|
68.9
|
|
||||
Lights and Licensing
|
29.2
|
|
|
18.6
|
|
|
87.1
|
|
|
66.7
|
|
||||
Total Net Sales
|
$
|
647.2
|
|
|
$
|
392.8
|
|
|
$
|
1,775.5
|
|
|
$
|
1,340.5
|
|
|
For the Quarter Ended June 30,
|
|
For the Nine Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net Sales
|
|
|
|
|
|
|
|
||||||||
North America
|
$
|
410.3
|
|
|
$
|
216.5
|
|
|
$
|
1,075.2
|
|
|
$
|
748.1
|
|
Latin America
|
54.8
|
|
|
24.8
|
|
|
145.0
|
|
|
90.4
|
|
||||
Americas
|
465.1
|
|
|
241.3
|
|
|
1,220.2
|
|
|
838.5
|
|
||||
Modern Markets
|
101.9
|
|
|
81.3
|
|
|
331.8
|
|
|
295.1
|
|
||||
Developing Markets
|
47.6
|
|
|
44.9
|
|
|
142.2
|
|
|
136.2
|
|
||||
Distributors Markets
|
32.6
|
|
|
25.3
|
|
|
81.3
|
|
|
70.7
|
|
||||
International
|
182.1
|
|
|
151.5
|
|
|
555.3
|
|
|
502.0
|
|
||||
Total Net Sales
|
$
|
647.2
|
|
|
$
|
392.8
|
|
|
$
|
1,775.5
|
|
|
$
|
1,340.5
|
|
Cash and cash equivalents
|
$
|
37.8
|
|
Trade receivables
|
59.4
|
|
|
Inventories
|
82.4
|
|
|
Other current assets
|
22.5
|
|
|
Assets held for sale
|
805.0
|
|
|
Property, plant and equipment, net
|
138.5
|
|
|
Goodwill
|
547.2
|
|
|
Other intangible assets, net
|
747.5
|
|
|
Other assets
|
14.1
|
|
|
Current portion of capital leases
|
(1.2
|
)
|
|
Accounts payable
|
(39.2
|
)
|
|
Other current liabilities
|
(24.8
|
)
|
|
Long-term debt
|
(14.7
|
)
|
|
Liabilities held for sale
|
(405.0
|
)
|
|
Other liabilities
|
(13.3
|
)
|
|
Net assets acquired
|
$
|
1,956.2
|
|
|
|
Total
|
|
Weighted Average Useful Lives
|
||
Trade names
|
|
$
|
513.0
|
|
|
Indefinite
|
Proprietary technology
|
|
61.0
|
|
|
5.9
|
|
Customer relationships
|
|
173.5
|
|
|
15.0
|
|
Total Other intangible assets, net
|
|
$
|
747.5
|
|
|
|
Cash and cash equivalents
|
$
|
3.3
|
|
Trade receivables
|
42.1
|
|
|
Inventories
|
96.1
|
|
|
Other current assets
|
8.9
|
|
|
Property, plant and equipment, net
|
66.5
|
|
|
Goodwill
|
270.1
|
|
|
Other intangible assets, net
|
972.5
|
|
|
Deferred tax assets
|
12.1
|
|
|
Other assets
|
3.2
|
|
|
Current portion of capital leases
|
(0.4
|
)
|
|
Accounts payable
|
(28.6
|
)
|
|
Other current liabilities
|
(13.6
|
)
|
|
Long-term debt
|
(31.9
|
)
|
|
Other liabilities (deferred tax liabilities)
|
(221.1
|
)
|
|
Net assets acquired
|
$
|
1,179.2
|
|
|
Total
|
|
Weighted Average Useful Lives
|
||
Trade names
|
$
|
702.9
|
|
|
Indefinite
|
Trade names
|
16.7
|
|
|
15.0
|
|
Proprietary technology
|
113.5
|
|
|
9.8
|
|
Customer relationships
|
139.4
|
|
|
15.0
|
|
Total Other intangible assets, net
|
$
|
972.5
|
|
|
|
Trade receivables
|
$
|
2.4
|
|
Inventories
|
0.9
|
|
|
Goodwill
|
14.7
|
|
|
Other intangible assets, net
|
21.8
|
|
|
Accounts payable
|
(1.7
|
)
|
|
Net assets acquired
|
$
|
38.1
|
|
|
Total
|
|
Weighted Average Useful Lives
|
||
Customer relationships
|
$
|
15.2
|
|
|
15.0
|
Trade names
|
4.2
|
|
|
14.0
|
|
Proprietary formula
|
2.4
|
|
|
11.0
|
|
Total Other intangible assets, net
|
$
|
21.8
|
|
|
14.4
|
|
|
For the Quarter Ended June 30,
|
|
For the Nine Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Pro forma net sales
|
|
$
|
647.2
|
|
|
$
|
684.0
|
|
|
$
|
2,000.4
|
|
|
$
|
2,077.2
|
|
Pro forma net earnings from continuing operations
|
|
14.2
|
|
|
37.5
|
|
|
113.6
|
|
|
9.1
|
|
||||
Pro forma mandatory preferred stock dividends
|
|
4.1
|
|
|
4.1
|
|
|
12.2
|
|
|
12.2
|
|
||||
Pro forma net earnings from continuing operations attributable to common shareholders
|
|
$
|
10.1
|
|
|
$
|
33.4
|
|
|
$
|
101.4
|
|
|
$
|
(3.1
|
)
|
Pro forma diluted net earnings per common share - continuing operations
|
|
$
|
0.14
|
|
|
$
|
0.47
|
|
|
$
|
1.43
|
|
|
$
|
(0.04
|
)
|
Pro forma weighted average shares of common stock - Diluted
|
|
70.6
|
|
|
71.4
|
|
|
71.0
|
|
|
71.4
|
|
|
|
For the Quarter Ended June 30,
|
|
For the Nine Months Ended June 30,
|
||||||||||||
Expense removed/(Additional Expense)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Inventory step up (1)
|
|
$
|
5.0
|
|
|
$
|
—
|
|
|
$
|
27.5
|
|
|
$
|
(26.5
|
)
|
Acquisition and integration costs (2)
|
|
—
|
|
|
13.2
|
|
|
30.1
|
|
|
(49.1
|
)
|
||||
Interest and ticking fees on escrowed debt (3)
|
|
—
|
|
|
3.4
|
|
|
27.5
|
|
|
4.9
|
|
||||
Gains on escrowed funds (4)
|
|
—
|
|
|
—
|
|
|
(12.0
|
)
|
|
—
|
|
|
|
For the Quarter Ended June 30, 2019
|
|
For the Nine Months Ended June 30, 2019
|
||||||||||||
|
|
Battery Acquisition
|
|
Auto Care Acquisition
|
|
Battery Acquisition
|
|
Auto Care Acquisition
|
||||||||
Net sales
|
|
$
|
109.1
|
|
|
$
|
135.6
|
|
|
$
|
209.0
|
|
|
$
|
220.1
|
|
Inventory fair value adjustment
|
|
—
|
|
|
6.5
|
|
|
14.2
|
|
|
19.5
|
|
||||
Income/(loss) before income taxes
|
|
6.1
|
|
|
13.6
|
|
|
(6.3
|
)
|
|
16.4
|
|
|
|
June 30, 2019
|
||
Assets
|
|
|
||
Trade receivables
|
|
$
|
41.1
|
|
Inventories
|
|
60.8
|
|
|
Other current assets
|
|
30.4
|
|
|
Property, plant and equipment, net
|
|
77.5
|
|
|
Goodwill
|
|
15.5
|
|
|
Other intangible assets, net
|
|
565.7
|
|
|
Other assets
|
|
16.6
|
|
|
Assets held for sale
|
|
$
|
807.6
|
|
|
|
|
||
Liabilities
|
|
|
||
Current portion of capital leases
|
|
$
|
5.4
|
|
Accounts payable
|
|
32.0
|
|
|
Notes payable
|
|
2.5
|
|
|
Other current liabilities
|
|
78.9
|
|
|
Long-term debt
|
|
26.7
|
|
|
Other liabilities (1)
|
|
239.4
|
|
|
Liabilities held for sale
|
|
$
|
384.9
|
|
|
|
For the Quarter Ended
|
|
For the Nine Months Ended
|
||||
|
|
June 30, 2019
|
|
June 30, 2019
|
||||
Net sales
|
|
$
|
69.9
|
|
|
$
|
150.1
|
|
Cost of products sold
|
|
52.5
|
|
|
122.3
|
|
||
Gross profit
|
|
17.4
|
|
|
27.8
|
|
||
Selling, general and administrative expense
|
|
18.1
|
|
|
39.2
|
|
||
Advertising and sales promotion expense
|
|
0.2
|
|
|
0.5
|
|
||
Research and development expense
|
|
0.2
|
|
|
0.2
|
|
||
Interest expense
|
|
3.7
|
|
|
10.4
|
|
||
Other items, net
|
|
(3.4
|
)
|
|
(7.2
|
)
|
||
Loss before income taxes from discontinued operations
|
|
(1.4
|
)
|
|
(15.3
|
)
|
||
Income tax expense (benefit)
|
|
0.4
|
|
|
(2.5
|
)
|
||
Net loss from discontinued operations
|
|
$
|
(1.8
|
)
|
|
$
|
(12.8
|
)
|
(in millions, except per share data)
|
For the Quarter Ended June 30,
|
|
For the Nine Months Ended June 30,
|
||||||||||||
Basic earnings per share
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net earnings from continuing operations
|
$
|
9.2
|
|
|
$
|
23.8
|
|
|
$
|
17.7
|
|
|
$
|
92.0
|
|
Mandatory preferred stock dividends
|
(4.4
|
)
|
|
—
|
|
|
(7.7
|
)
|
|
—
|
|
||||
Net earnings from continuing operations attributable to common shareholders
|
4.8
|
|
|
23.8
|
|
|
10.0
|
|
|
92.0
|
|
||||
Net loss from discontinued operations, net of tax
|
(1.8
|
)
|
|
—
|
|
|
(12.8
|
)
|
|
—
|
|
||||
Net earnings/(loss) attributable to common shareholders
|
$
|
3.0
|
|
|
$
|
23.8
|
|
|
$
|
(2.8
|
)
|
|
$
|
92.0
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding - basic
|
69.6
|
|
|
59.7
|
|
|
65.5
|
|
|
59.9
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic net earnings per common share from continuing operations
|
$
|
0.07
|
|
|
$
|
0.40
|
|
|
$
|
0.15
|
|
|
$
|
1.54
|
|
Basic net loss per common share from discontinued operations
|
(0.03
|
)
|
|
—
|
|
|
(0.19
|
)
|
|
—
|
|
||||
Basic net earnings/(loss) per common share
|
$
|
0.04
|
|
|
$
|
0.40
|
|
|
$
|
(0.04
|
)
|
|
$
|
1.54
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share
|
|
|
|
|
|
|
|
||||||||
Net earnings/(loss) attributable to common shareholders
|
$
|
3.0
|
|
|
$
|
23.8
|
|
|
$
|
(2.8
|
)
|
|
$
|
92.0
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding - basic
|
69.6
|
|
|
59.7
|
|
|
65.5
|
|
|
59.9
|
|
||||
Dilutive effect of restricted stock equivalents
|
0.3
|
|
|
0.5
|
|
|
0.3
|
|
|
0.4
|
|
||||
Dilutive effect of performance shares
|
0.5
|
|
|
1.0
|
|
|
0.5
|
|
|
0.9
|
|
||||
Dilutive effect of stock based deferred compensation plan
|
0.2
|
|
|
0.2
|
|
|
0.2
|
|
|
0.2
|
|
||||
Weighted average common shares outstanding - diluted
|
70.6
|
|
|
61.4
|
|
|
66.5
|
|
|
61.4
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Diluted net earnings per common share from continuing operations
|
$
|
0.07
|
|
|
$
|
0.39
|
|
|
$
|
0.15
|
|
|
$
|
1.50
|
|
Diluted net loss per common share from discontinued operations
|
(0.03
|
)
|
|
—
|
|
|
(0.19
|
)
|
|
—
|
|
||||
Diluted net earnings/(loss) per common share
|
$
|
0.04
|
|
|
$
|
0.39
|
|
|
$
|
(0.04
|
)
|
|
$
|
1.50
|
|
|
For the Quarter Ended June 30,
|
|
For the Nine Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net Sales
|
|
|
|
|
|
|
|
||||||||
Americas
|
$
|
465.1
|
|
|
$
|
241.3
|
|
|
$
|
1,220.2
|
|
|
$
|
838.5
|
|
International
|
182.1
|
|
|
151.5
|
|
|
555.3
|
|
|
502.0
|
|
||||
Total net sales
|
$
|
647.2
|
|
|
$
|
392.8
|
|
|
$
|
1,775.5
|
|
|
$
|
1,340.5
|
|
Segment Profit
|
|
|
|
|
|
|
|
||||||||
Americas
|
$
|
103.8
|
|
|
$
|
60.4
|
|
|
$
|
308.6
|
|
|
$
|
239.2
|
|
International
|
41.0
|
|
|
32.6
|
|
|
132.0
|
|
|
115.9
|
|
||||
Total segment profit
|
144.8
|
|
|
93.0
|
|
|
440.6
|
|
|
355.1
|
|
||||
General corporate and other expenses (1)
|
(29.9
|
)
|
|
(24.7
|
)
|
|
(78.3
|
)
|
|
(71.0
|
)
|
||||
Global marketing expense (2)
|
(3.0
|
)
|
|
(4.6
|
)
|
|
(12.5
|
)
|
|
(13.0
|
)
|
||||
Research and development expense (3)
|
(9.2
|
)
|
|
(5.2
|
)
|
|
(23.4
|
)
|
|
(15.9
|
)
|
||||
Amortization of intangible assets
|
(14.4
|
)
|
|
(2.8
|
)
|
|
(30.1
|
)
|
|
(8.4
|
)
|
||||
Acquisition and integration costs (4)
|
(28.0
|
)
|
|
(15.9
|
)
|
|
(159.9
|
)
|
|
(41.0
|
)
|
||||
Gain on sale of real estate
|
—
|
|
|
4.6
|
|
|
—
|
|
|
4.6
|
|
||||
Interest expense (5)
|
(51.9
|
)
|
|
(14.3
|
)
|
|
(111.7
|
)
|
|
(41.3
|
)
|
||||
Other items, net (6)
|
1.0
|
|
|
1.4
|
|
|
0.7
|
|
|
(0.8
|
)
|
||||
Total earnings before income taxes
|
$
|
9.4
|
|
|
$
|
31.5
|
|
|
$
|
25.4
|
|
|
$
|
168.3
|
|
|
For the Quarter Ended June 30,
|
|
For the Nine Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Cost of products sold
|
$
|
12.4
|
|
|
$
|
—
|
|
|
$
|
44.1
|
|
|
$
|
—
|
|
Selling, general and administrative expense
|
15.1
|
|
|
22.4
|
|
|
63.1
|
|
|
44.6
|
|
||||
Research and development expense
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
||||
Interest expense
|
—
|
|
|
3.4
|
|
|
65.6
|
|
|
6.3
|
|
||||
Other items, net
|
0.2
|
|
|
(9.9
|
)
|
|
(13.2
|
)
|
|
(9.9
|
)
|
||||
Total acquisition and integration costs
|
$
|
28.0
|
|
|
$
|
15.9
|
|
|
$
|
159.9
|
|
|
$
|
41.0
|
|
|
June 30, 2019
|
|
September 30, 2018
|
||||
Americas
|
$
|
982.1
|
|
|
$
|
504.2
|
|
International
|
659.3
|
|
|
851.5
|
|
||
Total segment assets
|
$
|
1,641.4
|
|
|
$
|
1,355.7
|
|
Corporate
|
144.1
|
|
|
1,346.3
|
|
||
Goodwill and other intangible assets
|
2,984.6
|
|
|
476.8
|
|
||
Assets held for sale
|
807.6
|
|
|
—
|
|
||
Total assets
|
$
|
5,577.7
|
|
|
$
|
3,178.8
|
|
|
Americas
|
|
International
|
|
Unallocated
|
|
Total
|
||||||||
Balance at October 1, 2018
|
$
|
228.4
|
|
|
$
|
15.8
|
|
|
$
|
—
|
|
|
$
|
244.2
|
|
Battery Acquisition
|
—
|
|
|
—
|
|
|
547.2
|
|
|
547.2
|
|
||||
Auto Care Acquisition
|
—
|
|
|
—
|
|
|
270.1
|
|
|
270.1
|
|
||||
Cumulative translation adjustment
|
—
|
|
|
(0.2
|
)
|
|
1.1
|
|
|
0.9
|
|
||||
Balance at June 30, 2019
|
$
|
228.4
|
|
|
$
|
15.6
|
|
|
$
|
818.4
|
|
|
$
|
1,062.4
|
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
||||||
Trademarks and trade names
|
$
|
61.0
|
|
|
$
|
8.8
|
|
|
$
|
52.2
|
|
Customer relationships
|
412.5
|
|
|
28.2
|
|
|
384.3
|
|
|||
Patents
|
34.5
|
|
|
7.6
|
|
|
26.9
|
|
|||
Proprietary technology
|
174.5
|
|
|
10.5
|
|
|
164.0
|
|
|||
Proprietary formulas
|
2.4
|
|
|
0.2
|
|
|
2.2
|
|
|||
Non-compete
|
0.5
|
|
|
0.3
|
|
|
0.2
|
|
|||
Total Amortizable intangible assets
|
685.4
|
|
|
55.6
|
|
|
629.8
|
|
|||
Trademarks and trade names - indefinite lived
|
1,292.4
|
|
|
—
|
|
|
1,292.4
|
|
|||
Total Other intangible assets, net
|
$
|
1,977.8
|
|
|
$
|
55.6
|
|
|
$
|
1,922.2
|
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
||||||
Trademarks and trade names
|
$
|
44.3
|
|
|
$
|
6.1
|
|
|
$
|
38.2
|
|
Customer relationships
|
99.6
|
|
|
13.4
|
|
|
86.2
|
|
|||
Patents
|
34.5
|
|
|
5.7
|
|
|
28.8
|
|
|||
Proprietary formulas
|
2.4
|
|
|
0.1
|
|
|
2.3
|
|
|||
Non-compete
|
0.5
|
|
|
0.2
|
|
|
0.3
|
|
|||
Total Amortizable intangible assets
|
181.3
|
|
|
25.5
|
|
|
155.8
|
|
|||
Trademarks and trade names - indefinite lived
|
76.9
|
|
|
—
|
|
|
76.9
|
|
|||
Total Other intangible assets, net
|
$
|
258.2
|
|
|
$
|
25.5
|
|
|
$
|
232.7
|
|
|
June 30, 2019
|
|
September 30, 2018
|
||||
Senior Secured Term Loan A Facility due 2021
|
$
|
77.5
|
|
|
$
|
—
|
|
Senior Secured Term Loan B Facility due 2025
|
997.5
|
|
|
—
|
|
||
5.50% Senior Notes due 2025
|
600.0
|
|
|
600.0
|
|
||
6.375% Senior Notes due 2026
|
500.0
|
|
|
—
|
|
||
4.625% Senior Notes due 2026 (Euro Notes of €650.0)
|
739.2
|
|
|
—
|
|
||
7.750% Senior Notes due 2027
|
600.0
|
|
|
—
|
|
||
Senior Secured Term Loan B Facility due 2022
|
—
|
|
|
388.0
|
|
||
Capital lease obligations
|
47.4
|
|
|
—
|
|
||
Total long-term debt, including current maturities
|
3,561.6
|
|
|
988.0
|
|
||
Less current portion
|
(11.6
|
)
|
|
(4.0
|
)
|
||
Less unamortized debt discount and debt issuance fees
|
(56.8
|
)
|
|
(7.9
|
)
|
||
Total long-term debt
|
$
|
3,493.2
|
|
|
$
|
976.1
|
|
|
|
|
|
||||
6.375% Senior Notes due 2026
|
—
|
|
|
500.0
|
|
||
4.625% Senior Notes due 2026 (Euro Notes of €650.0)
|
—
|
|
|
754.2
|
|
||
Total gross long-term debt held in escrow
|
—
|
|
|
1,254.2
|
|
||
Less unamortized debt issuance fees
|
—
|
|
|
(23.5
|
)
|
||
Total long-term debt held in escrow
|
$
|
—
|
|
|
$
|
1,230.7
|
|
|
Long-term debt
|
|
Capital leases
|
||||
2020
|
$
|
10.0
|
|
|
$
|
4.7
|
|
2021
|
10.0
|
|
|
4.7
|
|
||
2022
|
87.5
|
|
|
4.7
|
|
||
2023
|
10.0
|
|
|
4.6
|
|
||
2024
|
10.0
|
|
|
5.5
|
|
||
Thereafter
|
3,386.7
|
|
|
70.9
|
|
||
Total long-term debt payments due
|
$
|
3,514.2
|
|
|
95.1
|
|
|
|
|
|
|
||||
Less: Interest on capital leases
|
|
|
(47.7
|
)
|
|||
Present value of capital lease payments (1)
|
|
|
$
|
47.4
|
|
|
For the Quarter Ended June 30,
|
||||||||||||||
|
U.S.
|
|
International
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
Interest cost
|
5.1
|
|
|
4.7
|
|
|
0.8
|
|
|
1.1
|
|
||||
Expected return on plan assets
|
(6.6
|
)
|
|
(7.5
|
)
|
|
(1.3
|
)
|
|
(1.6
|
)
|
||||
Amortization of unrecognized net losses
|
1.1
|
|
|
1.1
|
|
|
0.2
|
|
|
0.5
|
|
||||
Net periodic (benefit)/cost
|
$
|
(0.4
|
)
|
|
$
|
(1.7
|
)
|
|
$
|
(0.2
|
)
|
|
$
|
0.1
|
|
|
For the Nine Months Ended June 30,
|
||||||||||||||
|
U.S.
|
|
International
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.4
|
|
|
$
|
0.4
|
|
Interest cost
|
15.3
|
|
|
14.1
|
|
|
2.3
|
|
|
3.2
|
|
||||
Expected return on plan assets
|
(19.6
|
)
|
|
(22.6
|
)
|
|
(3.8
|
)
|
|
(4.8
|
)
|
||||
Amortization of unrecognized net losses
|
3.1
|
|
|
3.3
|
|
|
0.7
|
|
|
1.6
|
|
||||
Settlement charge
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
||||
Net periodic (benefit)/cost
|
$
|
(1.2
|
)
|
|
$
|
(5.1
|
)
|
|
$
|
(0.4
|
)
|
|
$
|
0.4
|
|
|
|
At June 30, 2019
|
|
For the Quarter Ended June 30, 2019
|
|
For the Nine Months Ended June 30, 2019
|
||||||||||||||
Derivatives designated as Cash Flow Hedging Relationships
|
|
Estimated Fair Value
Asset/(Liability) (1)
|
|
Loss Recognized in OCI (2)
|
|
Gain Reclassified From OCI into Income (3) (4)
|
|
Gain/(Loss) Recognized in OCI (2)
|
|
Gain Reclassified From OCI into Income (3) (4)
|
||||||||||
Foreign currency contracts
|
|
$
|
1.3
|
|
|
$
|
(0.4
|
)
|
|
$
|
1.9
|
|
|
$
|
3.7
|
|
|
$
|
6.7
|
|
Interest rate swaps (2017 and 2018)
|
|
(3.9
|
)
|
|
(4.1
|
)
|
|
0.2
|
|
|
(11.0
|
)
|
|
0.4
|
|
|||||
Zinc contracts
|
|
(0.7
|
)
|
|
(0.9
|
)
|
|
—
|
|
|
(0.7
|
)
|
|
—
|
|
|||||
Total
|
|
$
|
(3.3
|
)
|
|
$
|
(5.4
|
)
|
|
$
|
2.1
|
|
|
$
|
(8.0
|
)
|
|
$
|
7.1
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
At September 30, 2018
|
|
For the Quarter Ended June 30, 2018
|
|
For the Nine Months Ended June 30, 2018
|
||||||||||||||
Derivatives designated as Cash Flow Hedging Relationships
|
|
Estimated Fair Value
Asset (1)
|
|
Gain Recognized in OCI (2)
|
|
Loss Reclassified From OCI into Income (4) (5)
|
|
Gain Recognized in OCI (2)
|
|
Loss Reclassified From OCI into Income (4) (5)
|
||||||||||
Foreign currency contracts
|
|
$
|
4.3
|
|
|
$
|
5.6
|
|
|
$
|
(0.8
|
)
|
|
$
|
4.8
|
|
|
$
|
(5.1
|
)
|
Interest rate swaps (2017 and 2018)
|
|
7.7
|
|
|
2.2
|
|
|
(0.2
|
)
|
|
6.7
|
|
|
(1.0
|
)
|
|||||
Total
|
|
$
|
12.0
|
|
|
$
|
7.8
|
|
|
$
|
(1.0
|
)
|
|
$
|
11.5
|
|
|
$
|
(6.1
|
)
|
|
|
At June 30, 2019
|
|
For the Quarter Ended June 30, 2019
|
|
For the Nine Months Ended June 30, 2019
|
||||||
|
|
Estimated Fair Value Liability (1)
|
|
Loss Recognized in Income (2) (3)
|
|
Loss Recognized in Income (2) (3)
|
||||||
Foreign currency contracts
|
|
$
|
(1.0
|
)
|
|
$
|
(1.3
|
)
|
|
$
|
(0.2
|
)
|
|
|
At September 30, 2018
|
|
For the Quarter Ended June 30, 2018
|
|
For the Nine Months Ended June 30, 2018
|
||||||
|
|
Estimated Fair Value Liability (1)
|
|
Gain Recognized in Income (4)
|
|
Gain Recognized in Income (4)
|
||||||
Foreign currency contracts
|
|
$
|
(0.1
|
)
|
|
$
|
8.7
|
|
|
$
|
10.0
|
|
Offsetting of derivative assets
|
||||||||||||||||||||||||||
|
|
|
|
At June 30, 2019
|
|
At September 30, 2018
|
||||||||||||||||||||
Description
|
|
Balance Sheet location
|
|
Gross amounts of recognized assets
|
|
Gross amounts offset in the Balance Sheet
|
|
Net amounts of assets presented in the Balance Sheet
|
|
Gross amounts of recognized assets
|
|
Gross amounts offset in the Balance Sheet
|
|
Net amounts of assets presented in the Balance Sheet
|
||||||||||||
Foreign Currency Contracts
|
|
Other Current Assets, Other Assets
|
|
$
|
2.3
|
|
|
$
|
(0.4
|
)
|
|
$
|
1.9
|
|
|
$
|
4.7
|
|
|
$
|
(0.2
|
)
|
|
$
|
4.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Offsetting of derivative liabilities
|
||||||||||||||||||||||||||
|
|
|
|
At June 30, 2019
|
|
At September 30, 2018
|
||||||||||||||||||||
Description
|
|
Balance Sheet location
|
|
Gross amounts of recognized liabilities
|
|
Gross amounts offset in the Balance Sheet
|
|
Net amounts of liabilities presented in the Balance Sheet
|
|
Gross amounts of recognized liabilities
|
|
Gross amounts offset in the Balance Sheet
|
|
Net amounts of liabilities presented in the Balance Sheet
|
||||||||||||
Foreign Currency Contracts
|
|
Other Current Liabilities, Other Liabilities
|
|
$
|
(1.6
|
)
|
|
$
|
—
|
|
|
$
|
(1.6
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
—
|
|
|
$
|
(0.3
|
)
|
|
Level 2
|
||||||
Assets/(Liabilities) at estimated fair value:
|
June 30,
2019 |
|
September 30,
2018 |
||||
Deferred compensation
|
$
|
(27.4
|
)
|
|
$
|
(29.0
|
)
|
Derivatives - Foreign Currency contracts
|
1.3
|
|
|
4.3
|
|
||
Derivatives - Foreign Currency contracts (non-hedge)
|
(1.0
|
)
|
|
(0.1
|
)
|
||
Derivatives - 2017 and 2018 Interest Rate swaps
|
(3.9
|
)
|
|
7.7
|
|
||
Derivatives - Zinc contracts
|
(0.7
|
)
|
|
—
|
|
||
Exit lease liability
|
(0.3
|
)
|
|
(0.6
|
)
|
||
Net Liabilities at estimated fair value
|
$
|
(32.0
|
)
|
|
$
|
(17.7
|
)
|
|
Foreign Currency Translation Adjustments (1)
|
|
Pension Activity
|
|
Zinc Contracts
|
|
Foreign Currency Contracts
|
|
Interest Rate Contracts
|
|
Total
|
||||||||||||
Balance at September 30, 2018
|
$
|
(113.6
|
)
|
|
$
|
(136.4
|
)
|
|
$
|
—
|
|
|
$
|
3.3
|
|
|
$
|
4.9
|
|
|
$
|
(241.8
|
)
|
OCI before reclassifications
|
3.3
|
|
|
(0.2
|
)
|
|
(0.5
|
)
|
|
2.9
|
|
|
(8.3
|
)
|
|
(2.8
|
)
|
||||||
Reclassifications to earnings
|
—
|
|
|
3.2
|
|
|
—
|
|
|
(5.2
|
)
|
|
(0.3
|
)
|
|
(2.3
|
)
|
||||||
Activity related to discontinued operations
|
1.0
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
|
1.6
|
|
||||||
Balance at June 30, 2019
|
$
|
(109.3
|
)
|
|
$
|
(133.4
|
)
|
|
$
|
0.1
|
|
|
$
|
1.0
|
|
|
$
|
(3.7
|
)
|
|
$
|
(245.3
|
)
|
|
For the Quarter Ended June 30,
|
|
For the Nine Months Ended June 30,
|
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
||||||||
Details of AOCI Components
|
Amount Reclassified
from AOCI (1)
|
|
Amount Reclassified
from AOCI (1)
|
Affected Line Item in the Combined Statements of Earnings
|
||||||||||||
Gains and losses on cash flow hedges
|
|
|
|
|
|
|
||||||||||
Foreign currency contracts
|
$
|
1.9
|
|
|
$
|
(0.8
|
)
|
|
$
|
6.7
|
|
|
$
|
(5.1
|
)
|
Other items, net
|
Interest rate contracts
|
0.2
|
|
|
(0.2
|
)
|
|
0.4
|
|
|
(1.0
|
)
|
Interest expense
|
||||
|
2.1
|
|
|
(1.0
|
)
|
|
7.1
|
|
|
(6.1
|
)
|
(Loss)/earnings before income taxes
|
||||
|
(0.4
|
)
|
|
0.2
|
|
|
(1.6
|
)
|
|
1.4
|
|
Income tax (benefit)/provision
|
||||
|
$
|
1.7
|
|
|
$
|
(0.8
|
)
|
|
$
|
5.5
|
|
|
$
|
(4.7
|
)
|
Net (loss)/earnings
|
Amortization of defined benefit pension items
|
|
|
|
|
|
|||||||||||
Actuarial loss
|
(1.3
|
)
|
|
(1.6
|
)
|
|
(3.8
|
)
|
|
(4.9
|
)
|
(2)
|
||||
Settlement loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
(2)
|
||||
|
(1.3
|
)
|
|
(1.6
|
)
|
|
(3.8
|
)
|
|
(5.0
|
)
|
(Loss)/earnings before income taxes
|
||||
|
0.2
|
|
|
0.5
|
|
|
0.6
|
|
|
1.3
|
|
Income tax (benefit)/provision
|
||||
|
$
|
(1.1
|
)
|
|
$
|
(1.1
|
)
|
|
$
|
(3.2
|
)
|
|
$
|
(3.7
|
)
|
Net (loss)/earnings
|
Total reclassifications to earnings
|
$
|
0.6
|
|
|
$
|
(1.9
|
)
|
|
$
|
2.3
|
|
|
$
|
(8.4
|
)
|
Net (loss)/earnings
|
|
|
For the Quarters Ended June 30,
|
|
For the Nine Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Other items, net
|
|
|
|
|
|
|
|
|
||||||||
Interest income
|
|
$
|
(0.3
|
)
|
|
$
|
(0.4
|
)
|
|
$
|
(1.3
|
)
|
|
$
|
(1.2
|
)
|
Interest income on restricted cash
|
|
—
|
|
|
—
|
|
|
(5.8
|
)
|
|
—
|
|
||||
Foreign currency exchange (gain)/loss
|
|
(0.3
|
)
|
|
0.7
|
|
|
2.4
|
|
|
7.7
|
|
||||
Pension benefit other than service costs
|
|
(0.7
|
)
|
|
(1.7
|
)
|
|
(2.1
|
)
|
|
(5.1
|
)
|
||||
Acquisition foreign currency loss/(gain)
|
|
0.9
|
|
|
(9.9
|
)
|
|
(8.1
|
)
|
|
(9.9
|
)
|
||||
Settlement of acquired business hedging contracts
|
|
—
|
|
|
—
|
|
|
1.5
|
|
|
—
|
|
||||
Transition services agreement income
|
|
(0.7
|
)
|
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
||||
Other
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
(0.6
|
)
|
||||
Total Other items, net
|
|
$
|
(0.8
|
)
|
|
$
|
(11.3
|
)
|
|
$
|
(13.9
|
)
|
|
$
|
(9.1
|
)
|
|
June 30,
2019
|
|
September 30, 2018
|
||||
Inventories
|
|
|
|
||||
Raw materials and supplies
|
$
|
85.6
|
|
|
$
|
40.0
|
|
Work in process
|
143.2
|
|
|
86.5
|
|
||
Finished products
|
295.5
|
|
|
196.6
|
|
||
Total inventories
|
$
|
524.3
|
|
|
$
|
323.1
|
|
Other Current Assets
|
|
|
|
||||
Miscellaneous receivables
|
$
|
15.5
|
|
|
$
|
9.9
|
|
Due from Spectrum
|
18.9
|
|
|
—
|
|
||
Prepaid expenses
|
119.7
|
|
|
52.2
|
|
||
Value added tax collectible from customers
|
20.0
|
|
|
20.8
|
|
||
Other
|
21.9
|
|
|
12.6
|
|
||
Total other current assets
|
$
|
196.0
|
|
|
$
|
95.5
|
|
Property, Plant and Equipment
|
|
|
|
||||
Land
|
$
|
9.8
|
|
|
$
|
4.5
|
|
Buildings
|
171.8
|
|
|
110.8
|
|
||
Machinery and equipment
|
767.2
|
|
|
696.2
|
|
||
Capital leases
|
50.5
|
|
|
—
|
|
||
Construction in progress
|
26.1
|
|
|
12.1
|
|
||
Total gross property
|
1,025.4
|
|
|
823.6
|
|
||
Accumulated depreciation
|
(664.4
|
)
|
|
(656.9
|
)
|
||
Total property, plant and equipment, net
|
$
|
361.0
|
|
|
$
|
166.7
|
|
Other Current Liabilities
|
|
|
|
||||
Accrued advertising, sales promotion and allowances
|
$
|
19.7
|
|
|
$
|
16.5
|
|
Accrued trade allowances
|
49.3
|
|
|
39.4
|
|
||
Accrued salaries, vacations and incentive compensation
|
46.5
|
|
|
48.8
|
|
||
Accrued interest expense
|
58.3
|
|
|
27.1
|
|
||
Due to Spectrum
|
10.7
|
|
|
—
|
|
||
Income taxes payable
|
49.2
|
|
|
23.4
|
|
||
Other
|
125.5
|
|
|
115.8
|
|
||
Total other current liabilities
|
$
|
359.2
|
|
|
$
|
271.0
|
|
Other Liabilities
|
|
|
|
||||
Pensions and other retirement benefits
|
$
|
66.5
|
|
|
$
|
70.2
|
|
Deferred compensation
|
27.4
|
|
|
29.0
|
|
||
Mandatory transition tax
|
16.7
|
|
|
33.1
|
|
||
Deferred tax liability
|
247.9
|
|
|
19.3
|
|
||
Other non-current liabilities
|
49.7
|
|
|
44.7
|
|
||
Total other liabilities
|
$
|
408.2
|
|
|
$
|
196.3
|
|
•
|
market and economic conditions;
|
•
|
market trends in the categories in which we compete;
|
•
|
our ability to integrate businesses; to realize the projected results of acquisitions of the acquired businesses, and to obtain expected cost savings, synergies and other anticipated benefits of the acquired businesses within the expected timeframe, or at all;
|
•
|
the impact of the acquired businesses on our business operations;
|
•
|
our ability to close on the divestiture of the Europe-based Varta® consumer battery, chargers, portable power and portable lighting business which serves the Europe, the Middle East and Africa markets;
|
•
|
the success of new products and the ability to continually develop and market new products;
|
•
|
our ability to attract, retain and improve distribution with key customers;
|
•
|
our ability to continue planned advertising and other promotional spending;
|
•
|
our ability to timely execute strategic initiatives, including restructurings, and international go-to-market changes in a manner that will positively impact our financial condition and results of operations and does not disrupt our business operations;
|
•
|
the impact of strategic initiatives, including restructurings, on our relationships with employees, customers and vendors;
|
•
|
our ability to maintain and improve market share in the categories in which we operate despite heightened competitive pressure;
|
•
|
our ability to improve operations and realize cost savings;
|
•
|
the impact of foreign currency exchange rates and currency controls, as well as offsetting hedges;
|
•
|
the impact of the United Kingdom’s announced intention to exit the European Union;
|
•
|
uncertainty from the expected discontinuance of LIBOR and the transition to any other interest rate benchmark;
|
•
|
the impact of raw materials and other commodity costs;
|
•
|
the impact of legislative changes or regulatory determinations or changes by federal, state and local, and foreign authorities, including customs and tariff determinations, as well as the impact of potential changes to tax laws, policies and regulations;
|
•
|
costs and reputational damage associated with cyber-attacks or information security breaches or other events;
|
•
|
the impact of advertising and product liability claims and other litigation; and
|
•
|
compliance with debt covenants and maintenance of credit ratings as well as the impact of interest and principal repayment of our existing and any future debt.
|
|
|
For the Quarter Ended June 30,
|
|
For the Nine Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net earnings/(loss) attributable to common shareholders
|
|
$
|
3.0
|
|
|
$
|
23.8
|
|
|
$
|
(2.8
|
)
|
|
$
|
92.0
|
|
Mandatory preferred stock dividends
|
|
(4.4
|
)
|
|
—
|
|
|
(7.7
|
)
|
|
—
|
|
||||
Net earnings
|
|
7.4
|
|
|
23.8
|
|
|
4.9
|
|
|
92.0
|
|
||||
Net loss from discontinued operations, net of income tax benefit
|
|
(1.8
|
)
|
|
—
|
|
|
(12.8
|
)
|
|
—
|
|
||||
Net earnings from continuing operations
|
|
$
|
9.2
|
|
|
$
|
23.8
|
|
|
$
|
17.7
|
|
|
$
|
92.0
|
|
Adjustments
|
|
|
|
|
|
|
|
|
||||||||
Pre-tax acquisition and integration (1)
|
|
28.0
|
|
|
15.9
|
|
|
159.9
|
|
|
41.0
|
|
||||
Tax impact of acquisition and integration charges
|
|
(5.9
|
)
|
|
(2.9
|
)
|
|
(30.8
|
)
|
|
(9.8
|
)
|
||||
Gain on sale of real estate
|
|
—
|
|
|
(3.5
|
)
|
|
—
|
|
|
(3.5
|
)
|
||||
Acquisition withholding tax (2)
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
6.0
|
|
||||
One-time impact of the new U.S. Tax Legislation
|
|
(0.8
|
)
|
|
(0.6
|
)
|
|
0.7
|
|
|
30.6
|
|
||||
Adjusted net earnings from continuing operations (3)
|
|
$
|
30.5
|
|
|
$
|
33.2
|
|
|
$
|
147.5
|
|
|
$
|
156.3
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
For the Quarter Ended June 30,
|
|
For the Nine Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Diluted net earnings per common share - continuing operations
|
|
$
|
0.07
|
|
|
$
|
0.39
|
|
|
$
|
0.15
|
|
|
$
|
1.50
|
|
Adjustments
|
|
|
|
|
|
|
|
|
||||||||
Pre-tax acquisition and integration (1)
|
|
0.40
|
|
|
0.26
|
|
|
2.25
|
|
|
0.67
|
|
||||
Tax impact of acquisition and integration charges
|
|
(0.09
|
)
|
|
(0.05
|
)
|
|
(0.43
|
)
|
|
(0.16
|
)
|
||||
Gain on sale of real estate
|
|
—
|
|
|
(0.06
|
)
|
|
—
|
|
|
(0.06
|
)
|
||||
Acquisition withholding tax (2)
|
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.10
|
|
||||
One-time impact of the new U.S. Tax Legislation
|
|
(0.01
|
)
|
|
(0.01
|
)
|
|
0.01
|
|
|
0.50
|
|
||||
Impact for diluted share calculation (4)
|
|
—
|
|
|
—
|
|
|
0.10
|
|
|
$
|
—
|
|
|||
Adjusted diluted net earnings per diluted share - continuing operations
|
|
$
|
0.37
|
|
|
$
|
0.54
|
|
|
$
|
2.07
|
|
|
$
|
2.55
|
|
Weighted average shares of common stock - Diluted
|
|
70.6
|
|
|
61.4
|
|
|
66.5
|
|
|
61.4
|
|
||||
Adjusted Weighted average shares of common stock - Diluted (4)
|
|
70.6
|
|
|
61.4
|
|
|
71.2
|
|
|
61.4
|
|
|
|
For the Quarter Ended June 30,
|
|
For the Nine Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Cost of products sold
|
|
$
|
12.4
|
|
|
$
|
—
|
|
|
$
|
44.1
|
|
|
$
|
—
|
|
Selling, general and administrative expense
|
|
15.1
|
|
|
22.4
|
|
|
63.1
|
|
|
44.6
|
|
||||
Research and development expense
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
||||
Interest expense
|
|
—
|
|
|
3.4
|
|
|
65.6
|
|
|
6.3
|
|
||||
Other items, net
|
|
0.2
|
|
|
(9.9
|
)
|
|
(13.2
|
)
|
|
(9.9
|
)
|
||||
Total acquisition and integration costs
|
|
$
|
28.0
|
|
|
$
|
15.9
|
|
|
$
|
159.9
|
|
|
$
|
41.0
|
|
•
|
Organic net sales were up 3.6% in the second fiscal quarter due to the following items:
|
◦
|
Favorable pricing across both segments contributed 1.8% to the organic increase;
|
◦
|
Distribution gains contributed 1.3% to the organic increase; and
|
◦
|
The impact of the reclassification of licensing revenues contributed 0.5%.
|
•
|
The positive impact of the acquisitions was $247.7, or 63.1%;
|
•
|
The negative impact due to the change in Argentina operations was $0.1; and
|
•
|
Unfavorable currency impacts were $7.4, or 1.9%.
|
•
|
Organic sales increased by 2.3% primarily driven by:
|
◦
|
Category growth, pricing and distribution gains contributed 2.4% to the organic increase;
|
◦
|
The impact of the reclassification of licensing revenues contributed 0.4%; and
|
◦
|
Partially offsetting the above was 0.5% related to volume declines as a result of lapping fill volume benefits of our prior year portfolio alignment.
|
|
|
For the Quarter Ended June 30,
|
|
For the Nine Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Other items, net
|
|
|
|
|
|
|
|
|
||||||||
Interest income
|
|
$
|
(0.3
|
)
|
|
$
|
(0.4
|
)
|
|
$
|
(1.3
|
)
|
|
$
|
(1.2
|
)
|
Interest income on restricted cash (1)
|
|
—
|
|
|
—
|
|
|
(5.8
|
)
|
|
—
|
|
||||
Foreign currency exchange (gain)/loss
|
|
(0.3
|
)
|
|
0.7
|
|
|
2.4
|
|
|
7.7
|
|
||||
Pension benefit other than service costs
|
|
(0.7
|
)
|
|
(1.7
|
)
|
|
(2.1
|
)
|
|
(5.1
|
)
|
||||
Acquisition foreign currency loss/(gain) (2)
|
|
0.9
|
|
|
(9.9
|
)
|
|
(8.1
|
)
|
|
(9.9
|
)
|
||||
Settlement of acquired business hedging contracts (3)
|
|
—
|
|
|
—
|
|
|
1.5
|
|
|
—
|
|
||||
Transition services agreement income
|
|
(0.7
|
)
|
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
||||
Other
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
(0.6
|
)
|
||||
Total Other items, net
|
|
$
|
(0.8
|
)
|
|
$
|
(11.3
|
)
|
|
$
|
(13.9
|
)
|
|
$
|
(9.1
|
)
|
|
Quarter Ended June 30, 2019
|
|
Nine Months Ended June 30, 2019
|
||||||||
|
$ Change
|
% Chg
|
|
$ Change
|
% Chg
|
|
|||||
Americas
|
|
|
|
|
|
||||||
Net sales - FY '18
|
$
|
241.3
|
|
|
|
$
|
838.5
|
|
|
||
Organic
|
7.2
|
|
3.0
|
%
|
|
13.9
|
|
1.7
|
%
|
||
Impact of Battery Acquisition
|
89.9
|
|
37.3
|
%
|
|
168.0
|
|
20.0
|
%
|
||
Impact of Auto Care Acquisition
|
124.7
|
|
51.7
|
%
|
|
202.6
|
|
24.2
|
%
|
||
Impact of Nu Finish Acquisition
|
2.9
|
|
1.2
|
%
|
|
5.7
|
|
0.7
|
%
|
||
Change in Argentina
|
(0.1
|
)
|
—
|
%
|
|
(4.3
|
)
|
(0.5
|
)%
|
||
Impact of currency
|
(0.8
|
)
|
(0.5
|
)%
|
|
(4.2
|
)
|
(0.6
|
)%
|
||
Net Sales - FY '19
|
$
|
465.1
|
|
92.7
|
%
|
|
$
|
1,220.2
|
|
45.5
|
%
|
|
|
|
|
|
|
||||||
International
|
|
|
|
|
|
||||||
Net sales - FY '18
|
$
|
151.5
|
|
|
|
$
|
502.0
|
|
|
||
Organic
|
7.0
|
|
4.6
|
%
|
|
17.3
|
|
3.4
|
%
|
||
Impact of Battery Acquisition
|
19.2
|
|
12.7
|
%
|
|
41.0
|
|
8.2
|
%
|
||
Impact of Auto Care Acquisition
|
10.9
|
|
7.2
|
%
|
|
17.5
|
|
3.5
|
%
|
||
Impact of Nu Finish Acquisition
|
0.1
|
|
0.1
|
%
|
|
0.2
|
|
—
|
%
|
||
Impact of currency
|
(6.6
|
)
|
(4.4
|
)%
|
|
(22.7
|
)
|
(4.5
|
)%
|
||
Net Sales - FY '19
|
$
|
182.1
|
|
20.2
|
%
|
|
$
|
555.3
|
|
10.6
|
%
|
|
|
|
|
|
|
||||||
Total Net Sales
|
|
|
|
|
|
||||||
Net sales - FY '18
|
$
|
392.8
|
|
|
|
$
|
1,340.5
|
|
|
||
Organic
|
14.2
|
|
3.6
|
%
|
|
31.2
|
|
2.3
|
%
|
||
Impact of Battery Acquisition
|
109.1
|
|
27.8
|
%
|
|
209.0
|
|
15.6
|
%
|
||
Impact of Auto Care Acquisition
|
135.6
|
|
34.5
|
%
|
|
220.1
|
|
16.4
|
%
|
||
Impact of Nu Finish Acquisition
|
3.0
|
|
0.8
|
%
|
|
5.9
|
|
0.4
|
%
|
||
Change in Argentina
|
(0.1
|
)
|
—
|
%
|
|
(4.3
|
)
|
(0.3
|
)%
|
||
Impact of currency
|
(7.4
|
)
|
(1.9
|
)%
|
|
(26.9
|
)
|
(1.9
|
)%
|
||
Net Sales - FY '19
|
$
|
647.2
|
|
64.8
|
%
|
|
$
|
1,775.5
|
|
32.5
|
%
|
|
Quarter Ended June 30, 2019
|
|
Nine Months Ended June 30, 2019
|
||||||||
|
$ Change
|
% Chg
|
|
$ Change
|
% Chg
|
||||||
Americas
|
|
|
|
|
|
||||||
Segment Profit - FY '18
|
$
|
60.4
|
|
|
|
$
|
239.2
|
|
|
||
Organic
|
2.8
|
|
4.6
|
%
|
|
0.3
|
|
0.1
|
%
|
||
Impact of Battery Acquisition
|
13.0
|
|
21.5
|
%
|
|
20.1
|
|
8.4
|
%
|
||
Impact of Auto Care Acquisition
|
28.8
|
|
47.7
|
%
|
|
52.8
|
|
22.1
|
%
|
||
Impact of Nu Finish Acquisition
|
(0.1
|
)
|
(0.2
|
)%
|
|
1.9
|
|
0.8
|
%
|
||
Change in Argentina
|
(0.6
|
)
|
(1.0
|
)%
|
|
(2.9
|
)
|
(1.2
|
)%
|
||
Impact of currency
|
(0.5
|
)
|
(0.7
|
)%
|
|
(2.8
|
)
|
(1.2
|
)%
|
||
Segment Profit - FY '19
|
$
|
103.8
|
|
71.9
|
%
|
|
$
|
308.6
|
|
29.0
|
%
|
|
|
|
|
|
|
||||||
International
|
|
|
|
|
|
||||||
Segment Profit - FY '18
|
$
|
32.6
|
|
|
|
$
|
115.9
|
|
|
||
Organic
|
5.2
|
|
16.0
|
%
|
|
18.2
|
|
15.7
|
%
|
||
Impact of Battery Acquisition
|
6.3
|
|
19.3
|
%
|
|
12.3
|
|
10.6
|
%
|
||
Impact of Auto Care Acquisition
|
1.4
|
|
4.3
|
%
|
|
2.1
|
|
1.8
|
%
|
||
Impact of Nu Finish Acquisition
|
0.1
|
|
0.3
|
%
|
|
0.1
|
|
0.1
|
%
|
||
Impact of currency
|
(4.6
|
)
|
(14.1
|
)%
|
|
(16.6
|
)
|
(14.3
|
)%
|
||
Segment Profit - FY '19
|
$
|
41.0
|
|
25.8
|
%
|
|
$
|
132.0
|
|
13.9
|
%
|
|
|
|
|
|
|
||||||
Total Segment Profit
|
|
|
|
|
|
||||||
Segment Profit - FY '18
|
$
|
93.0
|
|
|
|
$
|
355.1
|
|
|
||
Organic
|
8.0
|
|
8.6
|
%
|
|
18.5
|
|
5.2
|
%
|
||
Impact of Battery Acquisition
|
19.3
|
|
20.8
|
%
|
|
32.4
|
|
9.1
|
%
|
||
Impact of Auto Care Acquisition
|
30.2
|
|
32.5
|
%
|
|
54.9
|
|
15.5
|
%
|
||
Impact of Nu Finish Acquisition
|
—
|
|
—
|
%
|
|
2.0
|
|
0.6
|
%
|
||
Change in Argentina
|
(0.6
|
)
|
(0.6
|
)%
|
|
(2.9
|
)
|
(0.8
|
)%
|
||
Impact of currency
|
(5.1
|
)
|
(5.6
|
)%
|
|
(19.4
|
)
|
(5.5
|
)%
|
||
Segment Profit - FY '19
|
$
|
144.8
|
|
55.7
|
%
|
|
$
|
440.6
|
|
24.1
|
%
|
|
For the Quarter Ended June,
|
|
For the Nine Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
General corporate and other expenses
|
$
|
29.9
|
|
|
$
|
24.7
|
|
|
$
|
78.3
|
|
|
$
|
71.0
|
|
Global marketing expense
|
3.0
|
|
|
4.6
|
|
|
12.5
|
|
|
13.0
|
|
||||
General corporate and global marketing expense
|
$
|
32.9
|
|
|
$
|
29.3
|
|
|
$
|
90.8
|
|
|
$
|
84.0
|
|
% of Net Sales
|
5.1
|
%
|
|
7.5
|
%
|
|
5.1
|
%
|
|
6.3
|
%
|
•
|
Approximately $25 of the increase relates to receivables of the newly acquired Auto Care and Battery businesses since the acquisition date. The Auto Care business is in its peak season, which contributed to higher balances at June 30, 2019 versus the prior year legacy business.
|
•
|
Prior to closing the acquisitions, the business factored its receivables through various arrangements which were in part paused or terminated upon close. During the third fiscal quarter we reinstated various factoring arrangements, which helped to offset some of the accounts receivable increase. We expect to see additional benefit in the fourth quarter as we continue to reinstate the factoring programs.
|
•
|
Finally, our legacy business had strong organic growth year over year due to distribution gains and price increases, which also added to the year over year increase in receivables.
|
•
|
Capital expenditures of $36.4 and $17.2 in the nine months ended June 30, 2019 and 2018, respectively.
|
•
|
Acquisitions, net of cash acquired was $2,453.8 in the nine months ended June 30, 2019. This included $1,518.4 for the Battery Acquisition and $935.4 for the cash portion of the Auto Care Acquisition. Net cash from discontinued operations includes the remaining $400.0 currently allocated to the purchase of the Divestment Business.
|
•
|
Cash proceeds from issuance of debt with original maturities greater than 90 days of $1,800.0 related to the funding of the 2018 Term Loans and the bonds utilized to fund the Battery and Auto Care Acquisitions;
|
•
|
Net proceeds from the issuance of common stock of $205.3 utilized to fund the Auto Care Acquisition;
|
•
|
Net proceeds from the issuance of Mandatory Preferred Convertible Stock of $199.5 utilized to fund the Auto Care Acquisition;
|
•
|
Payments of debt with maturities greater than 90 days of $513.8, primarily related to the repayment of our Term Loan due in 2022 and additional $125.0 of payments on the 2018 Term Loan A and 2018 Term Loan B;
|
•
|
Net decrease in debt with original maturities of 90 days or less of $204.5, primarily related to repayment of borrowings on our 2015 Revolving Facility;
|
•
|
Dividends paid on common stock of $61.7 (see below);
|
•
|
Dividends paid on mandatory convertible preferred stock of $4.0;
|
•
|
Common stock purchased of $45.0 at an average price of $43.46 (see below);
|
•
|
Debt issuance costs of $40.1; and
|
•
|
Taxes paid for withheld share-based payments of $7.2.
|
•
|
Dividends paid on common stock of $52.3;
|
•
|
Common stock repurchases of $50.0 at an average price of $44.41 per share;
|
•
|
Payments of debt with maturities greater than 90 days of $3.0;
|
•
|
|
•
|
Taxes paid for withheld share-based payments of $1.8;
|
•
|
Debt issuance costs of $1.4; and
|
•
|
Net increase in debt with original maturities of 90 days or less of $70.6.
|
|
Total
|
Less than 1 year
|
1 - 3 years
|
3 - 5 years
|
More than 5 years
|
||||||||||
Long-term debt, including current maturities
|
$
|
3,514.2
|
|
$
|
10.0
|
|
$
|
97.5
|
|
$
|
20.0
|
|
$
|
3,386.7
|
|
Interest on long-term debt (1)
|
1,388.5
|
|
194.5
|
|
386.3
|
|
380.8
|
|
426.9
|
|
|||||
Notes payable
|
41.5
|
|
41.5
|
|
—
|
|
—
|
|
|
||||||
Operating leases
|
164.7
|
|
22.3
|
|
29.9
|
|
87.8
|
|
24.7
|
|
|||||
Capital leases (2)
|
95.1
|
|
4.7
|
|
9.4
|
|
10.1
|
|
70.9
|
|
|||||
Pension plans (3)
|
2.8
|
|
2.8
|
|
—
|
|
—
|
|
—
|
|
|||||
Purchase obligations and other (4)
|
22.7
|
|
22.1
|
|
0.6
|
|
—
|
|
—
|
|
|||||
Mandatory transition tax
|
16.7
|
|
—
|
|
—
|
|
3.9
|
|
12.8
|
|
|||||
Total
|
$
|
5,246.2
|
|
$
|
297.9
|
|
$
|
523.7
|
|
$
|
502.6
|
|
$
|
3,922.0
|
|
•
|
failure to effectively transfer liabilities, contracts, operations, facilities and employees to buyers;
|
•
|
requirements that we retain or indemnify buyers against certain liabilities and obligations;
|
•
|
the possibility that we will become subject to third-party claims arising out of such divestiture;
|
•
|
challenges in identifying and separating the intellectual property and data to be divested from the intellectual property and data that we wish to retain;
|
•
|
inability to reduce fixed costs previously associated with the divested assets or business;
|
•
|
challenges in collecting the proceeds from any divestiture;
|
•
|
ability to reduce costs to achieve expected synergies for the rest of our business;
|
•
|
disruption of our ongoing business and distraction of management;
|
•
|
difficulties with transition services following the divestiture that result in material impacts to our ongoing operations;
|
•
|
loss of key employees who leave the Company as a result of a divestiture; and
|
•
|
if customers or partners of the divested business do not receive the same level of service from the new owners, our other businesses may be adversely affected, to the extent that these customers or partners also purchase other products offered by us or otherwise conduct business with our retained business.
|
•
|
requiring a substantial portion of our cash flow from operations to make payments on this debt, thereby limiting the cash we have available to fund future growth opportunities, such as research and development, capital expenditures and acquisitions;
|
•
|
restrictive covenants in our debt arrangements which could limit our operations and borrowing;
|
•
|
the risk of a future credit ratings downgrade of our debt increasing future debt costs and limiting the future availability of debt financing;
|
•
|
increasing our vulnerability to general adverse economic and industry conditions and limiting our flexibility in planning for, or reacting to, changes in our business and industry, due to the need to use our cash to service our outstanding debt;
|
•
|
placing us at a competitive disadvantage relative to our competitors that are not as highly leveraged with debt and that may therefore be more able to invest in their business or use their available cash to pursue other opportunities, including acquisitions; and
|
•
|
limiting our ability to borrow additional funds as needed or take advantage of business opportunities as they arise.
|
Issuer Purchases of Equity Securities
|
|||||||||
Period
|
Total Number of Shares Purchased (1)
|
Average Price Paid Per Share
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)
|
Maximum Number That May Yet Be Purchased Under the Plans or Programs (2)
|
|||||
April 1 - April 30
|
—
|
|
—
|
|
—
|
|
3,838,791
|
|
|
May 1 - May 31
|
—
|
|
$
|
—
|
|
—
|
|
3,838,791
|
|
June 1 - June 30
|
1,036,356
|
|
$
|
43.46
|
|
1,036,000
|
|
3,838,791
|
|
Total
|
1,036,356
|
|
$
|
43.46
|
|
1,036,000
|
|
2,802,791
|
|
Exhibit No.
|
|
Description of Exhibit
|
2.1**
|
|
Separation and Distribution Agreement by and between Energizer Holdings, Inc. (f/k/a Energizer SpinCo, Inc.) and Edgewell Personal Care Company (f/k/a Energizer Holdings, Inc.) dated as of June 25, 2015 (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed June 29, 2015).
|
|
|
|
2.2**
|
|
Tax Matters Agreement by and between Energizer Holdings, Inc. (f/k/a Energizer SpinCo, Inc.) and Edgewell Personal Care Company (f/k/a Energizer Holdings, Inc.) dated as of June 26, 2015 (incorporated by reference to Exhibit 2.2 to the Company’s Current Report on Form 8-K filed June 29, 2015).
|
|
|
|
2.3**
|
|
Employee Matters Agreement by and between Energizer Holdings, Inc. (f/k/a Energizer SpinCo, Inc.) and Edgewell Personal Care Company (f/k/a Energizer Holdings, Inc.) dated as of June 25, 2015 (incorporated by reference to Exhibit 2.3 to the Company’s Current Report on Form 8-K filed June 29, 2015).
|
|
|
|
2.4**
|
|
Transition Services Agreement by and between Energizer Holdings, Inc. (f/k/a Energizer SpinCo, Inc.) and Edgewell Personal Care Company (f/k/a Energizer Holdings, Inc.) dated as of June 25, 2015 (incorporated by reference to Exhibit 2.4 to the Company’s Current Report on Form 8-K filed June 29, 2015).
|
|
|
|
|
Contribution Agreement by and between the Company and Edgewell Personal Care Company (f/k/a Energizer Holdings, Inc.) dated June 30, 2015 (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed June 30, 2015).
|
|
|
|
|
2.6**
|
|
Agreement and Plan of Merger, dated as of May 24, 2016, by and among the Company, Energizer Reliance, Inc., Trivest Partners V, L.P., and HandStands Holding Corporation (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed May 27, 2016).
|
|
|
|
2.7**
|
|
Acquisition Agreement, dated as of January 15, 2018, by and among the Company and Spectrum Brands Holdings, Inc. (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed January 16, 2018).
|
|
|
|
2.8**
|
|
Amended and Restated Acquisition Agreement, dated as of November 15, 2018, by and between Energizer Holdings, Inc. and Spectrum Brands Holdings, Inc. (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed November 15, 2018).
|
|
|
|
2.9**
|
|
Acquisition Agreement, dated as of November 15, 2018, by and between Energizer Holdings, Inc. and Spectrum Brands Holdings, Inc. (incorporated by reference to Exhibit 2.2 to the Company’s Current Report on Form 8-K filed November 15, 2018).
|
|
|
|
|
Acquisition Agreement, dated May 29, 2019, between Energizer Holdings, Inc. and VARTA Aktiengesellschaft (Disclosure Letter and certain schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company agrees to furnish supplementally to the SEC a copy of the omitted Disclosure Letter and certain schedules and exhibits upon request) (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed on May 29, 2019).
|
|
|
|
|
|
Third Amended and Restated Articles of Incorporation of Energizer Holdings, Inc. (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed January 29, 2018).
|
|
|
|
|
|
Third Amended and Restated Bylaws of Energizer Holdings, Inc. (incorporated by reference to Exhibit 3.2 to the Company's Current Report on Form 8-K filed January 29, 2018).
|
|
|
|
|
|
Certificate of Designations of the 7.50% Series A Mandatory Convertible Preferred Stock of Energizer Holdings, Inc., filed with the Secretary of State of the State of Missouri and effective January 17, 2019 (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed January 18, 2019).
|
|
|
|
|
|
Amendment No. 1 to Credit Agreement, dated as of June 10, 2019, by and among Energizer Holdings, Inc., JPMorgan Chase Bank, N.A., as administrative agent, and the lenders party thereto.
|
|
|
|
|
|
Certification of periodic financial report by the Chief Executive Officer of Energizer Holdings, Inc. pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
Certification of periodic financial report by the Chief Financial Officer of Energizer Holdings, Inc. pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
Certification of periodic financial report pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, by the Chief Executive Officer of Energizer Holdings, Inc.
|
|
|
|
|
|
Certification of periodic financial report pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, by the Chief Financial Officer of Energizer Holdings, Inc.
|
|
|
|
|
101.INS*
|
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
|
|
101.SCH*
|
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
101.CAL*
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
101.DEF*
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
|
101.LAB*
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
|
101.PRE*
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
|
ENERGIZER HOLDINGS, INC.
|
|
|
|
|
|
|
|
Registrant
|
|
|
|
|
|
|
|
By:
|
/s/ Timothy W. Gorman
|
|
|
|
Timothy W. Gorman
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
|
|
|
|
|
|
|
|
|
Date:
|
August 7, 2019
|
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Energizer Holdings, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Alan R. Hoskins
|
Alan R. Hoskins
|
Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Energizer Holdings, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting
|
/s/ Timothy W. Gorman
|
Timothy W. Gorman
|
Executive Vice President and Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Alan R. Hoskins
|
Alan R. Hoskins
|
Chief Executive Officer
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Timothy W. Gorman
|
Timothy W. Gorman
|
Executive Vice President and Chief Financial Officer
|