10q10k10q10k.net

What changed in EDGEWELL PERSONAL CARE Co's 10-K — 2023 vs 2024

vs

Paragraph-level year-over-year comparison of EDGEWELL PERSONAL CARE Co's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+307 added−317 removedSource: 10-K (2024-11-14) vs 10-K (2023-11-28)

Top changes in EDGEWELL PERSONAL CARE Co's 2024 10-K

307 paragraphs added · 317 removed · 219 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

66 edited+17 added−14 removed43 unchanged
Biggest changeDuring 2023, we advanced our focus on DEI through many specific actions including: • Our CEO continued his commitment through the CEO Action for Diversity & Inclusion™, a coalition uniting business leaders to advance DEI in the workplace through education, training, dialogue and action. • We continue with our commitment to a diverse and inclusive Board of Directors.
Biggest changeDuring 2024, we advanced our focus on DEI through many specific actions including: • Our CEO continued his commitment through the CEO Action for Diversity & Inclusion™, a coalition uniting business leaders to advance DEI in the workplace through education, training, dialogue and action. • Our Vice President, DEI is leading and advancing our global DEI strategy as well as supporting our Teammate Resource Groups who remain focused on influencing Edgewell’s inclusive culture for everyone. • Continued with Mitigating Unconscious Bias training, which is delivered globally to our People Leaders, as well as providing opportunities for our teammates to receive mini lessons on issues that are important to them.
Our principal competitors in the global wet shave business are: The Procter & Gamble Company, which owns the Gillette brand and is the leading company in the global wet shave segment; Bic Group, which is expanding beyond its historical strength in the disposable segment; and Dorco, which competes primarily in the private label segment.
Our principal competitors in the global wet shave business are: The Procter & Gamble Company, which owns the Gillette brand and is the leading company in the global wet shave segment; The Bic Group, which is expanding beyond its historical strength in the disposable segment; and Dorco, which competes primarily in the private label segment.
As a result of increased competition through the expansion of online markets, we have established e-commerce operations across several business lines, including global Schick.com websites providing men’s and women’s shaving products, Bulldog, Jack Black and Billie DTC sites, an acceleration of e-commerce sales in China through our partnership with T-Mall.
As a result of increased competition through the expansion of online markets, we have established e-commerce operations across several business lines, including global Schick.com websites providing men’s and women’s shaving products, Bulldog, Jack Black and Billie DTC sites, and an acceleration of e-commerce sales in China through our partnership with T-Mall.
In connection with certain sites, we have received notices from the EPA, state agencies and private parties seeking contribution that we have been identified as a potentially responsible party (“PRP”) under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”) and, as a result, we may be required to share in the cost of cleanup with respect to a number of federal “Superfund” sites.
In connection with certain sites, we have received past notices from the EPA, state agencies and private parties seeking contribution that we have been identified as a potentially responsible party (“PRP”) under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”) and, as a result, we may be required to share in the cost of cleanup with respect to a number of federal “Superfund” sites.
We believe our foundational values of “People First,” “Move Forward,” “Listen Up and Speak Up” and “Own It Together” support a culture of celebration, agility, authenticity, and collaboration. This culture promotes trust and teamwork, which results in bold and aggressive goals, smart risks, and an environment where innovation and ideation thrive.
We believe our foundational values of “People First,” “Move Forward,” “Listen Up and Speak Up” and “Own It Together” support a culture of celebration, agility, authenticity, inclusion and collaboration. This culture promotes trust and teamwork, which results in bold and aggressive goals, smart risks, and an environment where innovation and ideation thrive.
Segment performance is evaluated based on segment profit, exclusive of general corporate expenses, share-based compensation costs, costs associated with restructuring initiatives and other items that are not representative of management’s view on how segment performance is evaluated. Information regarding the product portfolios of these segments is included within the following discussion.
Segment performance is evaluated based on segment operating profit, exclusive of general corporate expenses, share-based compensation costs, costs associated with restructuring initiatives and other items that are not representative of management’s view on how segment performance is evaluated. Information regarding the product portfolios of these segments is included within the following discussion.
In the past, we have avoided significant interruption in the availability of our input materials and believe that our extensive experience and global reach in procurement will continue to allow us to manage these risks effectively.
In the past, we have largely avoided significant interruption in the availability of our input materials and believe that our extensive experience and global reach in procurement will continue to allow us to manage these risks effectively.
We intend to continue to invest in innovation in our feminine care brands. 4 Competition The personal care product categories in which we compete are highly competitive, both in the U.S. and in most international markets, as large manufacturers with global operations and new entrants attempting to disrupt the market compete for consumer acceptance and increasingly limited retail shelf space.
We expect to continue to invest in innovation in our feminine care brands. 4 Competition The personal care product categories in which we compete are highly competitive, both in the U.S. and in most international markets, as large manufacturers with global operations and new entrants attempting to disrupt the market compete for consumer acceptance and increasingly limited retail shelf space.
Our goal is to support our People Managers in taking accountability for their results and to empower them to make changes at a local level to improve the employee experience. 9 Executive Officers Set forth below are the names and ages as of September 30, 2023, and current positions of our executive officers. Name Age Title Rod R.
Our goal is to support our People Managers in taking accountability for their results and to empower them to make changes at a local level to improve the employee experience. 9 Executive Officers Set forth below are the names and ages as of September 30, 2024, and current positions of our executive officers. Name Age Title Rod R.
Sales and Distribution Our products are marketed primarily through a direct sales force and supplemented by strategic exclusive and non-exclusive distributors and wholesalers. In the U.S., Japan and larger markets in Western Europe and Latin America, we have dedicated commercial organizations, reflecting the scale and importance of these businesses to our Company.
Sales and Distribution Our products are marketed primarily through a direct sales force and supplemented by strategic exclusive and non-exclusive distributors and wholesalers. In the U.S., Japan, China, Australia and larger markets in Western Europe and Latin America, we have dedicated commercial organizations, reflecting the scale and importance of these businesses to our Company.
Financial information regarding each of our reportable segments, as well as other geographical information, is included in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and in Note 18 of Notes to Consolidated Financial Statements included within Item 8. Financial Statements and Supplementary Data of this Annual Report on Form 10-K.
Financial information regarding each of our reportable segments, as well as other geographical information, is included in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and in Note 20 of Notes to Consolidated Financial Statements included within Item 8. Financial Statements and Supplementary Data of this Annual Report on Form 10-K.
Sun and Skin Care The markets for sun and skin care are also highly competitive, characterized by the frequent introduction of new products accompanied by major advertising and promotional programs. Our competitors in these markets consist of a large number of domestic and foreign companies, including Bayer AG and Johnson & Johnson.
Sun and Skin Care The markets for sun and skin care are also highly competitive, characterized by the frequent introduction of new products accompanied by major advertising and promotional programs. Our competitors in these markets consist of a large number of domestic and foreign companies, including Bayer AG and Kenvue.
We are making significant progress on our goals, including in priority areas such as sustainable products and packaging, ingredient stewardship and transparency, responsible sourcing, reducing waste, protecting the health and safety of our teammates, and embracing diversity, equity, and inclusion across the organization, among others.
We are making progress on our goals, including in priority areas such as sustainable products and packaging, ingredient stewardship, responsible sourcing, reducing waste, protecting the health and safety of our teammates, and embracing diversity, equity, and inclusion across the organization, among others.
Our ability to compete effectively in the Wet Shave, Sun and Skin Care, and Feminine Care personal care categories depends, in part, on our ability to maintain the proprietary nature of technology and manufacturing processes through a combination of patent and trade secret protection, non-disclosure agreements and licensing agreements.
Our ability to compete effectively in the Wet Shave, Sun and Skin Care, and Feminine Care personal care segments depends, in part, on our ability to maintain the proprietary nature of technology and manufacturing processes through a combination of patent and trade secret protection, non-disclosure agreements and licensing agreements.
We make available to the public on our website, free of charge, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as soon as reasonably practicable after such material is electronically filed with, or furnished to, the U.S.
We make available to the public on our website, free of charge, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as soon as reasonably practicable after such material is electronically filed with, or furnished to, the SEC.
Item 1. Business. Overview Edgewell Personal Care Company, and its subsidiaries, is one of the world’s largest manufacturers and marketers of personal care products in the Wet Shave, Sun and Skin Care, and Feminine Care categories. With operations in over 20 countries, our products are widely available in more than 50 countries.
Item 1. Business. Overview Edgewell Personal Care Company, and its subsidiaries, is one of the world’s largest manufacturers and marketers of personal care products in the Wet Shave, Sun and Skin Care, and Feminine Care segments. With operations in approximately 20 countries, our products are widely available in more than 50 countries.
Total environmental capital expenditures and operating expenses are not expected to have a material adverse effect on our total capital and operating expenditures, cash flows, earnings or competitive position.
Total environmental capital expenditures and operating expenses from known environmental liabilities are not expected to have a material adverse effect on our total capital and operating expenditures, cash flows, earnings or competitive position.
Sullivan served as Executive Vice President and Chief Financial Officer of Party City Holdco Inc. Previously, Mr. Sullivan spent six years, from 2010 to 2016, with Ahold USA Inc., where he held positions of increasing responsibility within their control and finance divisions, ultimately serving as Executive Vice President and Chief Financial Officer from 2013 to 2016. Prior to that, Mr.
Sullivan spent six years, from 2010 to 2016, with Ahold USA Inc., where he held positions of increasing responsibility within their control and finance divisions, ultimately serving as Executive Vice President and Chief Financial Officer from 2013 to 2016. Prior to that, Mr.
With our established brands and product lines and global presence, we believe we compete effectively in this market.
With our established brands and product lines and global presence, we believe we compete effectively in this segment.
Human Capital Employee Profile At Edgewell, we are committed first and foremost to people: our employees, the consumers who use our products, the suppliers and retailers who partner with us, and the communities in which we operate. As of September 30, 2023, we had approximately 6,800 employees, with 2,200 based in the United States.
Human Capital Employee Profile At Edgewell, we are committed first and foremost to people: our employees, the consumers who use our products, the suppliers and retailers who partner with us, and the communities in which we operate. As of September 30, 2024, we had approximately 6,700 employees, with 2,100 based in the United States.
On March 1, 2018, we completed the acquisition of Jack Black, L.L.C. (“Jack Black”), a men’s luxury skincare company based in the U.S. On September 2, 2020, we completed the acquisition of Cremo Holding Company, LLC (“Cremo”), a U.S.-based masstige men’s grooming brand.
On March 1, 2018, we completed the acquisition of Jack Black, L.L.C. (“Jack Black”), a men’s luxury skincare company based in the U.S. On September 2, 2020, we completed the acquisition of Cremo Holding Company, LLC (“Cremo”), a U.S.-based masstige men’s grooming brand. On November 29, 2021, we completed the acquisition of Billie, Inc.
We intend to continue to compete by driving product innovation, building differentiated brand equity and focusing on in-store visibility. The global men’s skin care market is expected to continue to grow, with increased demand for men’s personal care products.
We intend to continue to compete by leveraging our formulation and manufacturing expertise, driving product innovation, building differentiated brand equity and focusing on in-store visibility. The global men’s skin care market is expected to continue to grow, with increased demand for men’s personal care products.
REACH requires manufacturers and importers of chemical substances to register such substances with the European Chemicals Agency, or the ECHA, and enables European and national authorities to track such substances.
REACH requires manufacturers and importers of chemical substances to register such substances with the European Chemicals Agency, (the “ECHA”), and enables European and national authorities to track such substances.
Certain of our employees outside of the U.S. are represented by unions or works councils. We have cultivated a culture that is centered around our guiding purpose of Making Useful Things Joyful, supported by a set of values and behaviors that guide organizational actions and decisions, underpinned by a focus on diversity, equity, and inclusion.
Certain of our employees outside of the U.S. are represented by unions or works councils. We have cultivated a culture that is centered around our guiding purpose of Making Useful Things Joyful, supported by a set of values and behaviors that guide organizational actions and decisions.
We distribute our products to consumers through numerous retail locations worldwide, including mass merchandisers and warehouse clubs, food, drug and convenience stores, and military stores. 5 Although a large percentage of our sales are attributable to a relatively small number of retail customers, only Walmart Inc. and its subsidiaries (“Walmart”), as a group, account for more than 10% of our consolidated annual net sales.
We distribute our products to consumers through numerous retail locations worldwide, including mass merchandisers and warehouse clubs, food, drug and convenience stores, and military stores, and both traditional and modern trade customers outside of the United States. 5 Although a large percentage of our sales are attributable to a relatively small number of retail customers, only Walmart Inc. and its subsidiaries (“Walmart”), as a group, account for more than 10% of our consolidated annual net sales.
We also compete with newer entrants to the Wet Shave market for both DTC online and traditional retail shelf space including Unilever (Dollar Shave Club brand), Harry's, Perio (Barbasol and PureSilk brands), Beiersdorf (Nivea branded women’s wet shave product in Germany) and numerous other online start-ups.
We also compete with newer entrants to the Wet Shave market for both DTC and traditional retail shelf space including Harry's, Flamingos, Estrid, Athena Club, Perio (Barbasol and PureSilk brands), Beiersdorf (Nivea branded women’s wet shave product in Germany) and numerous other online start-ups.
We have seen an increase in registration and reporting requirements concerning the use of certain chemicals in a number of countries, such as the Registration, Evaluation, Authorization and Restriction of Chemicals (“REACH”) regulations in the European Union (the “E.U.”).
We have seen an increase in registration and reporting requirements concerning the use of certain chemicals in a number of countries, such as the Registration, Evaluation, Authorization and Restriction of Chemicals (“REACH”) regulations in the European Union (the “E.U.”), which may impact our products.
As of September 30, 2023, we owned, either directly or beneficially, approximately 370 unexpired U.S. patents, which have a range of expiration dates from October 2023 to February 2040, and we had approximately 55 pending U.S. patent applications. We routinely prepare additional patent applications for filing in the U.S. and actively pursue foreign patent protection in various countries.
As of September 30, 2024, we owned, either directly or beneficially, 301 unexpired U.S. patents, which have a range of expiration dates from October 2024 to February 2040, and we had 73 pending U.S. patent applications. We routinely prepare additional patent applications for filing in the U.S. and actively pursue foreign patent protection in various countries.
These 2030 targets include (i) 100% renewable electricity use and carbon neutrality across our global operations; (ii) reducing use of virgin petroleum-based plastic content in products and packaging; (iii) using 100% recyclable, compostable or reusable plastic packaging; and (iv) reducing waste by 10% and pursuing zero waste to landfill across production facilities.
These 2030 targets include (i) 100% renewable electricity use and carbon neutrality across our global operations; (ii) reducing use of virgin petroleum-based plastic content packaging and select products; (iii) using 100% recyclable, compostable or reusable plastic packaging; and (iv) pursuing zero waste to landfills across manufacturing facilities.
As of September 30, 2023, we owned, either directly or beneficially, approximately 1,187 foreign patents, having a range of expiration dates from October 2023 to August 2048, and we had approximately 125 pending patent applications in foreign countries. We rely on trademark, trade secret, patent and copyright laws to protect our intellectual property rights.
As of September 30, 2024, we owned, either directly or beneficially, 1,220 foreign patents, having a range of expiration dates from October 2024 to August 2049, and we had 145 pending patent applications in foreign countries. We rely on trademark, trade secret, patent and copyright laws to protect our intellectual property rights.
Little also served for five years in the United States Air Force prior to joining Procter & Gamble in 1997. Daniel J. Sullivan has served as Chief Financial Officer since April 1, 2019, and effective October 1, 2022 Mr. Sullivan also serves as President, Europe and Latin America. Prior to joining Edgewell, Mr.
Little also served for five years in the United States Air Force prior to joining Procter & Gamble in 1997. Daniel J. Sullivan has served as Chief Financial Officer (“CFO”) since April 1, 2019, and President, Europe and Latin America since October 1, 2022. Effective August 6, 2024, Mr. Sullivan was also appointed as Chief Operating Officer.
Our competitors in this market include large companies such as Johnson & Johnson, L’Oréal S.A., The Estee Lauder Companies, Inc. and Unilever, as well as smaller companies.
Our competitors in this market include large companies such as Kenvue, L’Oréal S.A., The Estee Lauder Companies, Inc. and Unilever, and numerous other smaller companies.
Little served as Chief Financial Officer of HSNi from January 2017 to December 2017, and as Executive Vice President and Chief Financial Officer of Elizabeth Arden, Inc. from April 2014 to November 2016. Prior to joining Elizabeth Arden, Mr.
Little previously served as our Chief Financial Officer beginning in March 2018. Prior to joining Edgewell, Mr. Little served as Chief Financial Officer of HSNi from January 2017 to December 2017, and as Executive Vice President and Chief Financial Officer of Elizabeth Arden, Inc. from April 2014 to November 2016. Prior to joining Elizabeth Arden, Mr.
Walmart accounted for approximately 19.4% of our net sales in fiscal 2023. Purchases by Walmart included products from all of our segments. Target Corporation represented approximately 9.4% of net sales for our Sun and Skin Care segment and 10.0% for our Feminine Care segment, respectively. Generally, orders are shipped within a month of their order date.
Walmart accounted for approximately 17.2% of our net sales in fiscal 2024. Purchases by Walmart included products from all of our segments. Target Corporation represented approximately 9.5% of net sales for our Sun and Skin Care segment and 9.8% for our Feminine Care segment, respectively. Generally, orders are shipped within a month of their order date.
Our employees have access to several programs related to employee wellness including onsite biometric screening; cancer screening; weight loss programs and education; mental and emotional health awareness and support; and work-life balance through flextime, remote and hybrid working arrangements and parental leave, among others.
Our employees have access to many programs to support their wellbeing including onsite biometric screening; cancer screening; weight loss programs and education; mental and emotional health awareness and support through our global Employee Assistance Program; and work-life balance through flextime, remote and hybrid working arrangements, and parental leave, among others.
Registration of substances with the ECHA imposes significant recordkeeping requirements that can result in significant financial obligations for companies such as ours to import products into Europe. REACH is accompanied by legislation regulating the classification, labeling and packaging of chemical substances and mixtures.
Registration of substances with the ECHA imposes significant recordkeeping requirements that can result in significant financial obligations for companies such as ours to import products into Europe. REACH is accompanied by legislation regulating the classification, labeling and packaging of chemical substances and mixtures. We believe that our facilities and products are in substantial compliance with current applicable laws and regulations.
We compete across the full spectrum of Sun Care categories: general protection, sport, kids, baby, tanning and after sun. Outside of the U.S., we believe we are also the leading Sun Care manufacturer in Mexico with significant presence in Australia and Canada. We expect to continue to drive our worldwide business through product innovation, increased distribution and geographic expansion.
Outside of the U.S., we believe we are also the leading Sun Care manufacturer in Mexico with significant presence in Australia and Canada. We expect to continue to drive our worldwide Sun and Skin Care business through product innovation, increased distribution and geographic expansion.
Seasonality Customer orders for Sun Care products within our Sun and Skin Care segment are highly seasonal, which has historically resulted in higher sun care sales to retailers during the late winter through mid-summer months. Within our Wet Shave segment, sales of women’s products are moderately seasonal, with increased consumer demand in the spring and summer months.
Seasonality Customer orders for Sun Care products within our Sun and Skin Care segment are highly seasonal, which has historically resulted in higher sun care sales to retailers in the United States during the late winter through mid-summer months.
We offer tampons under the Playtex Gentle Glide® 360°®, Playtex Sport®, Playtex and o.b. brands, including the Playtex Sport compact tampon launched in 2017. We also market pads and liners under the Stayfree and Carefree brands.
Feminine Care In Feminine Care, we market products under the Playtex, Stayfree, Carefree and o.b. brands. We offer tampons under the Playtex Gentle Glide® 360°®, Playtex Sport®, Playtex and o.b. brands. We also market pads and liners under the Stayfree and Carefree brands.
Schmidt 46 Chief Accounting Officer Set forth below is a brief description of the position and business experience of each of our executive officers. Rod R. Little has served as President and Chief Executive Officer since March 1, 2019. Mr. Little previously served as our Chief Financial Officer beginning in March 2018. Prior to joining Edgewell, Mr.
Dunham 46 Chief Accounting Officer Francesca Weissman 49 Chief Financial Officer (effective December 1, 2024) Set forth below is a brief description of the position and business experience of each of our executive officers. Rod R. Little has served as President and Chief Executive Officer since March 1, 2019. Mr.
On November 29, 2021, we completed the acquisition of Billie, a high-quality shaving and premium body care brand which strengthens our women’s Wet Shave and grooming product portfolio (the “Billie Acquisition”).
(“Billie”), a high-quality shaving and premium body care brand which strengthens our women’s Wet Shave and grooming product portfolio (the “Billie Acquisition”).
We offer Wet Ones antibacterial hand wipes and other related products as the leader in the U.S. portable hand wipes category. We expect to utilize our position as market leader to further scale the business and use innovation such as Wet Ones lavender gel, to increase growth.
We offer Wet Ones antibacterial hand wipes and other related products as the leader in the U.S. portable hand wipes category. We expect to utilize our position as market leader to further scale the business and use innovation to increase growth. We have acquired a portfolio of men’s grooming skin care products that have grown under our direction.
Since launch, we have seen over 100,000 recognition moments. Employee Wellness and Safety The wellness of our people remains a primary focus and we believe that the most productive people are those who are at their best, both physically and mentally.
Employee Wellbeing The wellbeing of our people remains a primary focus, and we believe that the most productive people are those who are at their best, both physically and mentally.
Competition is based upon several factors, including brand quality and perception, product formulation and performance, customer service and price and promotion. The continued growth in online sales also puts additional competitive pressure on our Company. Wet Shave The global shaving products category is comprised of wet shave blades and razors, electric shavers and shaving gels and creams.
Competition is based upon several factors, including, but not limited to, brand quality and perception, product formulation and performance, customer service and price and promotion. Wet Shave The global shaving products category is comprised of wet shave blades and razors, electric shavers, and shaving gels and creams.
Schmidt spent the early part of his career in public accounting with PricewaterhouseCoopers LLP and is a certified public accountant. 10 Available Information Our website address is www.edgewell.com. We are not including the information contained on our website as part of, or incorporating it by reference into, this filing.
Ms. Weissman began her career at Ernst & Young and is a Certified Public Accountant. 10 Our website address is www.edgewell.com. We are not including the information contained on our website as part of, or incorporating it by reference into, this filing.
We will build upon the commitments outlined in our Sustainable Care 2030 strategy to promote an open and inclusive culture where everyone is treated fairly and with respect so that we can retain and attract the best talent. Teammate Experience We understand that to attract and retain great people, we must listen to and engage them regularly.
Overall, DEI is an important part of our Sustainable Care 2030 strategy and we will build upon the commitments to promote an open and inclusive culture where everyone is treated fairly and with respect so that we can attract and retain the best talent.
These materials are sourced on a regional or global basis, as applicable, and are generally available from multiple sources. Price and availability of our raw materials fluctuate over time. While we have confidence our supply assurance plans adequately support our current operational needs, we cannot predict the future with certainty.
Price and availability of our raw materials fluctuate over time. While we have confidence our supply assurance plans adequately support our current operational needs, we cannot predict the future with certainty.
We continue to reinforce our foundational values through several key initiatives: • Our performance management process provides for increased accountability to model our values by incorporating a ‘360-degree Values Assessment’ that evaluates each employee’s performance not only on the results achieved, but on how they achieve them. • In 2021, we launched an internal global recognition and service anniversary platform, InspireJOY, an online tool used to recognize service milestones and for those exhibiting our values through recognition awards from managers and peers.
We continue to reinforce these foundational values through several key initiatives such as our performance management process which incorporates a ‘360-degree Values Assessment’ that evaluates each employee’s performance not only on the results achieved, but on how they achieve them and an internal global recognition and service anniversary platform.
In fiscal 2022, we completed the acquisition of Billie, adding the growing woman’s brand to our portfolio of products. Billie’s strong direct-to-consumer and digital capabilities have underpinned its strong growth, which positioned the brand well for its initial expansion into U.S. brick-and-mortar in 2022.
Billie’s strong direct-to-consumer and digital capabilities have underpinned its strong growth, which positioned the brand well for its initial expansion into U.S. brick-and-mortar in 2022. The Billie brand complements and strengthens Edgewell’s position in the women’s shaving category, adding to our portfolio of strong brands such as Schick Intuition, Hydro Silk and Skintimate.
We continually look for ways to support the global workforce, our consumers, and the communities we serve. We recruit the best people for the job regardless of gender, race, ethnicity or other protected traits and it is our policy to comply fully with all domestic, foreign, and local laws relating to discrimination in the workplace.
Diversity, Equity and Inclusion We remain committed to creating a work environment where every individual feels respected, connected, valued, and empowered. We recruit the best people for the job regardless of gender, race, ethnicity or other protected traits and it is our policy to comply fully with all domestic, foreign, and local laws relating to discrimination in the workplace.
See “Our business is subject to seasonal volatility” in Item 1A. Risk Factors. Sources and Availability of Raw Materials The principal raw materials used in our products include steel, various plastic resins, plastic based components, textile fibers and non-woven fabrics, organic and inorganic chemicals, soap-based lubricants and plastic-pulp based packaging.
Sources and Availability of Raw Materials The principal raw materials used in our products include steel, various plastic resins, plastic based components, textile fibers and non-woven fabrics, organic and inorganic chemicals, soap-based lubricants and plastic-pulp based packaging. These materials are sourced on a regional or global basis, as applicable, and are mostly available from multiple sources.
Little 54 Chief Executive Officer Daniel J. Sullivan 54 Chief Financial Officer, President Europe and Latin America Paul R. Hibbert 54 Chief Supply Chain Officer John N. Hill 60 Chief Human Resources Officer LaTanya Langley 48 Chief Legal Officer and Corporate Secretary Eric O’Toole 56 President, North America Robert A.
Little 55 Chief Executive Officer Daniel J. Sullivan 55 Chief Financial Officer (until December 1, 2024), Chief Operating Officer and President Europe and Latin America Paul R. Hibbert 55 Chief Supply Chain Officer LaTanya Langley 49 Chief People Officer, Chief Legal Officer and Corporate Secretary John M.
We have acquired a portfolio of men’s grooming skin care products that have grown under our direction. Our Bulldog skincare products are purpose-built for men and were created to work simply and efficiently while dealing with issues specific to men’s skin.
Our Bulldog skincare products are purpose-built for men and were created to work simply and efficiently while dealing with issues specific to men’s skin. Since acquiring Bulldog, we have expanded sales geographically and we continue to commit resources to further growth and distribution for the brand.
Sun and Skin Care Sun and Skin Care products are sold under the Banana Boat, Hawaiian Tropic, Bulldog®, Jack Black®, Cremo® and Wet Ones brand names. We market Sun Care products under the Banana Boat and Hawaiian Tropic brands and believe these brands, on a combined basis, hold a leading market share position in the U.S. Sun Care category.
We market Sun Care products under the Banana Boat and Hawaiian Tropic brands and believe these brands, on a combined basis, hold a leading market share position in the U.S. Sun Care category. We largely compete across the full spectrum of Sun Care categories: general protection, sport, kids, baby, tanning and after sun.
Our Cremo products compete in the masstige category for men’s grooming, and offer a complete line of “barber quality” beard, hair and skin care products. Feminine Care In Feminine Care, we market products under the Playtex, Stayfree, Carefree and o.b. brands.
We acquired the Jack Black brand and obtained a footprint in the luxury men’s skincare market and continue to use resources at our disposal to grow the Jack Black brand globally. Our Cremo products compete in the masstige category for men’s grooming and offer a complete line of “barber quality” beard, hair and skin care products.
We also manufacture, distribute and sell a complete line of private label and disposable razors, shaving systems and replacement blades. These private label wet shave products including emerging direct-to-consumer (“DTC”) brands are sold primarily under a retailer’s store name or under our value brand names such as Personna.
These private label wet shave products including emerging direct-to-consumer (“DTC”) brands, are sold primarily under a retailer’s store name or under our value brand names such as Edgewell Custom Brands. Sun and Skin Care Sun and Skin Care products are sold under the Banana Boat, Hawaiian Tropic, Bulldog®, Jack Black®, Cremo® and Wet Ones brand names.
Each year, we conduct an anonymous employee experience survey to gauge our progress and identify the areas in the employee experience where we excel and areas for improvement. For the survey conducted in June 2023, our overall positivity score was 76% with 6,186 employees interacting with the survey.
Teammate Experience We understand that to attract and retain great people, we must listen to and engage them regularly. Each year, we conduct an anonymous employee experience survey to gauge our progress and identify the areas in the employee experience where we excel and areas for improvement. Our overall positivity score has continued to increase year-over-year.
Unveiled in 2020, our Sustainable Care 2030 strategy includes clear targets across our brands, operations and supply chain, as well as our workforce and communities.
Sustainability Edgewell’s Sustainable Care 2030 strategy provides a roadmap for delivering on our ambitions and guides us to be a successful and responsible business not just today, but for generations to come. Unveiled in 2020, our Sustainable Care 2030 strategy includes clear targets across our brands, operations and supply chain, as well as our workforce and communities.
In addition to global themes, our employee experience results identified diverse priorities at the functional, country, and team levels.
Specifically, confidence in Edgewell’s future, a sense of belonging, and a belief that Edgewell provides opportunities to achieve a meaningful work-life balance all increased year over year. In addition to global themes, our employee experience survey results identified diverse priorities at the functional, country, and team levels.
Finally, our manufacturing sites have revitalized their “Alive and Well” program and initiatives over the last year with some facilities rolling the program out to other levels in their organization. Ensuring a positive, purposeful working experience for our employees that is reflective of our purpose and values is central to our business operations.
Additionally, facilities have continued an existing machine safety program and assessment initiative, including completing any remaining assessments and implementing fixes for identified items. Finally, our manufacturing sites have revitalized their “Alive and Well” program and initiatives over the last year with some facilities rolling the program out to other levels in their organization.
The Sun Care categories globally are characterized historically by global growth and is impacted by trends in skin care. With our balanced Sun Care portfolio, depth of Sun Care formulation expertise and global presence, we believe we compete effectively and have more than doubled our international sun care business since acquiring the Banana Boat and Hawaiian Tropic brands in 2008.
The Sun Care category is highly regulated and competitive, and increasingly interacts with and is impacted by trends in the skin category. With our balanced Sun Care portfolio, depth of product formulation and manufacturing expertise and global presence, we believe we compete effectively across markets.
The Billie brand complements and strengthens Edgewell’s position in the women’s shaving category, adding to our portfolio of strong brands such as Schick Intuition, Hydro Silk and Skintimate. In the U.S., Canada and Japan, we sell market-leading shave preparation products, including shaving gels and creams under the Edge, Skintimate and Shave Guard brands.
In the U.S., Canada and Japan, we sell market-leading shave preparation products, including shaving gels and creams under the Edge, Skintimate and Shave Guard brands. We also manufacture, distribute and sell a complete line of private label and disposable razors, shaving systems and replacement blades.
We continually monitor employee retention rates and believe our progressive human resources 8 policies, learning and development, talent management, workplace health and safety, and community engagement and support activities enable us to attract and retain key personnel. Diversity, Equity and Inclusion We remain committed to creating a work environment where every individual feels respected, connected, valued, and empowered.
We continually monitor employee retention rates and believe our progressive human resources policies, learning and development, talent management, workplace health and safety, wellbeing programs, and community engagement and support activities enable us to attract and retain key personnel. 2024 saw the launch of a “Be Well” Community of Expertise and a “Be Well” Global Wellbeing Resource Center with the goal of fostering a culture of well-being and caring by supporting employees’ physical, social, financial, and emotional fitness. 8 Safety We believe that developing and maintaining a strong safety culture is one of the major keys to our continued success.
Hill joined our company in 2003 as General Manager Schick Canada following the acquisition of Schick-Wilkinson Sword from Pfizer, Inc. LaTanya Langley has served as Chief Legal Officer and Corporate Secretary since February 28, 2022. From 2015 to 2022, Ms.
LaTanya Langley has served as Chief Legal Officer and Corporate Secretary since February 28, 2022. Ms. Langley has also served as Chief People Officer since November 6, 2023 . Prior to joining Edgewell, Ms.
Langley served in roles of increasing responsibility at Société Bic S.A (commonly known as BIC), most recently as General Counsel, Corporate Secretary and Compliance Officer. Prior to joining BIC, Ms. Langley served as Senior Counsel at Diageo plc from 2008 to 2015. Eric O’Toole has served as President, North America since May 26, 2020. Prior to joining Edgewell, Mr.
Langley served as General Counsel, Corporate Secretary and Compliance Officer of Société Bic S.A (commonly known as BIC), a global manufacturer and distributor of consumer goods products. Prior to becoming General Counsel, Ms. Langley held positions of increasing responsibility within their legal function both in the United States and internationally. Ms.
However, there is no guarantee that we will achieve our environmental sustainability priorities in whole or in part on or before 2030. Additional information related to our social and environmental sustainability matters can be found at www.edgewell.com/pages/sustainability.
However, there is no guarantee that we will achieve all of our sustainability priorities on or before 2030 as our progress towards these priorities may be impacted by various factors beyond our control.
Removed
Since acquiring Bulldog, we have expanded sales geographically and we continue to commit resources to further growth and distribution for the brand. We acquired the Jack Black brand and obtained a footprint in the luxury men’s skincare market and continue to use resources at our disposal to grow the Jack Black brand globally.
Added
Within our Wet Shave segment, sales of women’s products are moderately seasonal, with increased consumer demand in the spring and summer months. See “Our business is subject to seasonal volatility” in Item 1A. Risk Factors.
Removed
We believe that our facilities and products are in substantial compliance with current applicable laws and regulations. 7 Sustainability Edgewell’s Sustainable Care 2030 strategy provides a roadmap for delivering on our ambitions and guides us to ensure that we are a successful and responsible business not just today, but for generations to come.
Added
We also regularly review our key sustainability priority areas to keep them relevant to our business 7 today and a changing sustainability landscape. Our priority areas are defined by where we believe we can have the greatest impact, as well as the areas that might most meaningfully impact our business.
Removed
As we face new variants, we continue to monitor the Novel Coronavirus 2019 (“COVID-19”) infection rates at all our locations and implement protocols such as the use of masks, when necessary, in order to protect our employees. We believe that developing and maintaining a strong safety culture in one of the major keys to our continued success.
Added
Sustainability related disclosures included in this Annual Report, our Proxy Statement and our sustainability reports are informed by standards and guidelines such as the Global Reporting Initiative (“GRI”) and the Task Force on Climate-related Financial Disclosures (“TCFD”).
Removed
To this end, in fiscal 2023, we implemented a multi-year objective for all sites to achieve either OSHA VPP (US sites) or ISO 45001 (Safety & Health Management Systems). Additionally, facilities have continued an existing machine safety program and assessment initiative, including completing any remaining assessments and implementing fixes for identified items.
Added
The materiality thresholds in those standards and guidelines may differ from the concept of materiality for purposes of the federal securities laws and disclosures required by the U.S. Securities and Exchange Commission’s (“SEC”) rules in this Annual Report on Form 10-K. Additional information related to our social and environmental sustainability matters can be found at www.edgewell.com/pages/sustainability.
Removed
Our diversity, equity, and inclusion (“DEI”) principles are also reflected in our values and behaviors, and in particular with our policies against harassment or bullying. We will continue to evolve our DEI policies to support all individuals who make up our teams.
Added
As recognition of the progress we’ve made in living our foundational values, we have received notable recognition in the following ways: • Recognized as one of America's Most Responsible Companies by Newsweek and Statista for the fifth year running.
Removed
Edgewell seeks to maintain a Board comprised of talented and dedicated directors with a mix of experience, skills and backgrounds collectively reflecting the strategic needs of the business and the nature of the environment in which the Company operates. • We have partnered with Out & Equal Workplace advocates to support our organization as we create a culture of belonging for all and to help LGBTQ+ people thrive in the workplace. • Our Director of DEI is leading and advancing our global DEI strategy as well as supporting our Teammate Resource Groups who remain focused on influencing Edgewell’s inclusive culture for everyone. • To continue with the Mitigating Bias training that is delivered to the organization in English, we have offered training globally where teammates could attend in their local language.
Added
In 2024, we rose to #19 overall — and #3 in our industry. • Ranked #2 out of 400 companies listed on Forbes America's Best Midsize Employers in 2024 — our first time being listed and a testament to our commitment to being a people-first employer. • Recognized by USA Today and Statista among their list of America’s Climate Leaders in 2024. • Recipient of the Environmental Protection Agency’s SmartWay Excellence Award as a true industry leader in freight and supply chain environmental performance and energy efficiency, one of only 18 shipper companies to receive the award in 2024.
Removed
In addition, we provide opportunities for our teammates to receive mini lessons on issues that are important to them. Overall, DEI is an important part of our sustainability strategy with a focus on sustaining the safety and well-being of our employees, the people who use our products, the partners with whom we work and the communities we serve.
Added
Ensuring a positive, meaningful working experience for our employees that is reflective of our purpose and values is central to our business operations.

… 17 more changes not shown on this page.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

42 edited+13 added−9 removed70 unchanged
Biggest changeThe covenants and financial ratio requirements contained in our debt instruments could also: • increase our vulnerability to general adverse economic and industry conditions; • require a substantial portion of our cash flow from operations to make payments on our indebtedness; • reduce the cash flow available or limit our ability to borrow additional funds, to pay dividends, to fund capital expenditures and other corporate purposes and to pursue our business strategies; • limit our flexibility in planning for, or reacting to, changes in our business and the markets in which we operate; and • place us at a competitive disadvantage relative to our competitors that have greater financial flexibility or limit, among other things, our ability to borrow additional funds as needed or take advantage of business opportunities as they arise. 18 Our Revolving Credit Facility (See Liquidity and Capital Resources for details) contains customary representations and warranties, and affirmative and negative covenants, including limitations on additional indebtedness, dividends, and other distributions, entry into new lines of business, use of loan proceeds, restrictions on liens on the assets of the Company and our subsidiaries, transactions with affiliates and dispositions.
Biggest changeThe covenants and financial ratio requirements contained in our debt instruments could also: • increase our vulnerability to general adverse economic and industry conditions; • require a substantial portion of our cash flow from operations to make payments on our indebtedness; • reduce the cash flow available or limit our ability to borrow additional funds, to pay dividends, to fund capital expenditures and other corporate purposes and to pursue our business strategies; • limit our flexibility in planning for, or reacting to, changes in our business and the markets in which we operate; and • place us at a competitive disadvantage relative to our competitors that have greater financial flexibility or limit, among other things, our ability to borrow additional funds as needed or take advantage of business opportunities as they arise.
Each new product launch, including those resulting from our product development process, carries risks, as well as the possibility of unexpected consequences, including: • the acceptance of our new product launches and sales of such new products may not be as high as we anticipate; • our marketing, promotional, advertising and/or pricing strategies for our new products may be less effective than planned and may fail to effectively reach the targeted consumer base or engender the desired consumption of the products by consumers; • we may incur costs exceeding our expectations as a result of the continued development and launch of new products, including, for example, unanticipated levels of research and development costs, advertising, promotional and/or marketing expenses, sales return expenses or other costs related to launching new products; • we may experience a decrease in sales of certain of our existing products as a result of newly-launched products, the impact of which could be exacerbated by shelf space limitations and/or any shelf space loss; 17 • our product pricing strategies for new product launches may not be accepted by customers and/or consumers, which may result in sales being less than we anticipate; and/or • we may experience a decrease in sales of certain of our products as a result of counterfeit products and/or products sold outside of their intended territories.
Each new product launch, including those resulting from our product development process, carries risks, as well as the possibility of unexpected consequences, including: • the acceptance of our new product launches and sales of such new products may not be as high as we anticipate; • our marketing, promotional, advertising and/or pricing strategies for our new products may be less effective than planned and may fail to effectively reach the targeted consumer base or engender the desired consumption of the products by consumers; • we may incur costs exceeding our expectations as a result of the continued development and launch of new products, including, for example, unanticipated levels of research and development costs, advertising, promotional and/or marketing expenses, sales return expenses or other costs related to launching new products; • we may experience a decrease in sales of certain of our existing products as a result of newly-launched products, the impact of which could be exacerbated by shelf space limitations and/or any shelf space loss; • our product pricing strategies for new product launches may not be accepted by customers and/or consumers, which may result in sales being less than we anticipate; and/or • we may experience a decrease in sales of certain of our products as a result of counterfeit products and/or products sold outside of their intended territories.
Consequently, we are subject to a number of risks associated with doing business in foreign countries, including: • sourcing of raw materials from around the world; • reliance on China to source, manufacture, and transport materials and goods; • delays in transportation of goods when shipping globally; • economic conditions impact availability and capacity of key vendors; 15 • the possibility of expropriation, confiscatory taxation or price controls; • the ability to repatriate foreign-based cash effectively for strategic needs in the U.S., as well as the heightened counterparty, internal control and country-specific risks associated with holding cash overseas; • the effect of foreign income taxes, value-added taxes and withholding taxes, including the inability to recover amounts owed to us by a government authority without extended proceedings or at all; • the effect of the U.S. tax treatment of foreign source income and losses, and other restrictions on the flow of capital between countries; • adverse changes in local investment or exchange control regulations; • restrictions on and taxation of international imports and exports; • legal and regulatory constraints, including tariffs and other trade barriers; • currency fluctuations, including the impact of hyper-inflationary conditions, particularly where exchange controls limit or eliminate our ability to convert from local currency; • political or economic instability, government nationalization of business or industries, government corruption and civil unrest, including political or economic instability; and • difficulty in enforcing contractual and intellectual property rights.
Consequently, we are subject to a number of risks associated with doing business in foreign countries, including: • sourcing of raw materials from around the world; • reliance on China to source, assemble, and transport materials and goods; 15 • delays in transportation of goods when shipping globally; • economic conditions impact availability and capacity of key vendors; • the possibility of expropriation, confiscatory taxation or price controls; • the ability to repatriate foreign-based cash effectively for strategic needs in the U.S., as well as the heightened counterparty, internal control and country-specific risks associated with holding cash overseas; • the effect of foreign income taxes, value-added taxes and withholding taxes, including the inability to recover amounts owed to us by a government authority without extended proceedings or at all; • the effect of the U.S. tax treatment of foreign source income and losses, and other restrictions on the flow of capital between countries; • adverse changes in local investment or exchange control regulations; • restrictions on and taxation of international imports and exports; • legal and regulatory constraints, including tariffs and other trade barriers; • currency fluctuations, including the impact of hyper-inflationary conditions, particularly where exchange controls limit or eliminate our ability to convert from local currency; • political or economic instability, government nationalization of business or industries, government corruption and civil unrest, including political or economic instability; and • difficulty in enforcing contractual and intellectual property rights.
The execution of cost savings initiatives may present a number of significant risks, including: • actual or perceived disruption of service or reduction in service standards to customers; • the failure to preserve adequate internal controls as we restructure our general and administrative functions, including our information technology and financial reporting infrastructure; • the failure to preserve supplier relationships and distribution, sales and other important relationships and to resolve conflicts that may arise; • loss of sales as we reduce or eliminate staffing on non-core product lines; • diversion of management attention from ongoing business activities; • the failure to maintain employee morale and retain key employees while implementing benefit changes and reductions in the workforce; and • identification of potential synergies in our manufacturing footprint Because of these and other factors, we cannot predict whether we will realize the purpose and anticipated benefits of these initiatives and, if we do not, our business and results of operations may be adversely affected.
The execution of cost savings initiatives may present a number of significant risks, including: • actual or perceived disruption of service or reduction in service standards to customers; • the failure to preserve adequate internal controls as we restructure our general and administrative functions, including our information technology and financial reporting infrastructure; • the failure to preserve supplier relationships and distribution, sales and other important relationships and to resolve conflicts that may arise; • loss of sales as we reduce or eliminate staffing on non-core product lines; • diversion of management attention from ongoing business activities; • the failure to maintain employee morale and retain key employees while implementing benefit changes and reductions in the workforce; and • identification and implementation of potential synergies in our manufacturing footprint Because of these and other factors, we cannot predict whether we will realize the anticipated benefits of these initiatives and, if we do not, our business and results of operations may be adversely affected.
The unfavorable resolution of any audits or litigation could have an adverse impact on future operating results and our financial condition. More aggressive and assertive tax collection policies, particularly in jurisdictions outside the U.S., may increase the costs of resolving tax issues and enhance the likelihood that we will have increased tax liabilities going forward.
The unfavorable resolution of any audits or litigation could have an adverse impact on future operating results and our financial condition. More aggressive and assertive tax collection policies, particularly in jurisdictions outside the U.S., may 13 increase the costs of resolving tax issues and enhance the likelihood that we will have increased tax liabilities going forward.
Product recalls or product liability claims, and any subsequent remedial actions, could have a material adverse effect on our business, reputation, brand value, results of operations and financial condition. 12 Litigation, in general, and class action and multi-district litigation, in particular, can be expensive and disruptive.
Product recalls or product liability claims, and any subsequent remedial actions, could have a material adverse effect on our business, reputation, brand value, results of operations and financial condition. Litigation, in general, and class action and multi-district litigation, in particular, can be expensive and disruptive.
Such acquisitions may result in potentially dilutive issuances of our equity securities, the incurrence of additional debt, restructuring charges, impairment charges, contingent liabilities, amortization expenses related to intangible assets, and increased operating expenses, which could adversely affect our results of operations and financial condition.
Such acquisitions may result in potentially dilutive issuances of our equity securities, the incurrence of additional 18 debt, restructuring charges, impairment charges, contingent liabilities, amortization expenses related to intangible assets, and increased operating expenses, which could adversely affect our results of operations and financial condition.
In the normal course of business, we may initiate projects which change our manufacturing footprint or our operations in order to gain production efficiencies and reduce costs.
In the normal course of business, we may initiate projects which change our manufacturing footprint or our operations in order to gain production and distribution efficiencies and reduce costs.
There is also a possibility that third-party manufacturers, which produce a significant portion of certain of our products, could discontinue production with little or no advance notice, or experience financial problems or problems with product quality or timeliness of product delivery, resulting in manufacturing delays or disruptions, regulatory sanctions, product liability claims or consumer complaints.
There is also a possibility that third-party manufacturers, which produce a portion of our products, could discontinue production with little or no advance notice, or experience financial problems or problems with product quality or timeliness of product delivery, resulting in manufacturing delays or disruptions, regulatory sanctions, product liability claims or consumer complaints.
Our access to capital markets to raise funds through the sale of debt or equity securities is subject to various factors, including general economic and financial market conditions. Significant reduction in market liquidity conditions could impact access to funding and increase associated borrowing costs, which could reduce our earnings and cash flows.
Our access to capital markets to raise funds through the sale of debt or equity securities is subject to various factors, including general economic and financial market conditions. A significant reduction in market liquidity and general economic conditions 17 could impact access to funding and increase associated borrowing costs, which could reduce our earnings and cash flows.
Pricing and availability of raw materials, energy, shipping, labor and other services needed for our business can be volatile due to general economic conditions, including inflation, supplier capacity restraints, geopolitical developments, changes in supply and demand, natural disasters, energy costs, health epidemics or pandemics (including the COVID-19 pandemic), labor shortages and turnover, production levels, currency fluctuations, governmental actions (including import and export requirements such as new or increased tariffs, sanctions, quotas or trade barriers), port congestions or delays, transport capacity restraints, cybersecurity incidents or other disruptions of key manufacturing sites, acts of terrorism and other factors beyond our control.
Pricing and availability of raw materials, energy, shipping, labor and other services needed for our business can be volatile due to general economic conditions, including inflation, supplier capacity restraints, geopolitical developments, changes in supply and demand, natural disasters, energy costs, health epidemics or pandemics, labor shortages and turnover, production levels, currency fluctuations, governmental actions (including import and export requirements such as new or increased tariffs, sanctions, quotas or trade barriers), port congestions or delays, transport capacity restraints, cybersecurity incidents or other disruptions of key manufacturing sites, acts of terrorism and other factors beyond our control.
Some of our customers, particularly our high-volume retail customers, have sought to obtain pricing and other concessions and better trade terms. To the extent we provide concessions or better trade terms to those customers, our margins are reduced.
Some of our high-volume customers have sought to obtain pricing and other concessions and better trade terms. To the extent we provide concessions or better trade terms to those customers, our margins are reduced.
In addition, even if we increase the prices of our products in response to increases in the cost of commodities or other cost increases, we may not be able to sustain its price increases.
In addition, even if we increase the prices of our products in response to increases in the cost of commodities or other cost increases, we may not be able to sustain such price increases.
Approximately $1.3 billion (90%) of our debt balance as of September 30, 2023 is borrowed at fixed interest rates ranging from 4.125% to 5.50% with maturity dates in 2028 and thereafter. Additionally, certain of our debt instruments are subject to certain financial and other covenants, including debt ratio tests.
Approximately $1.3 billion (98%) of our debt balance as of September 30, 2024, is borrowed at fixed interest rates ranging from 4.125% to 5.50% with maturity dates in 2028 and thereafter. Additionally, certain of our debt instruments are subject to certain financial and other covenants, including debt ratio tests.
We have incurred, and will continue to incur, capital and operating expenses and other costs in complying with environmental laws and regulations, including remediation costs relating to our current and former properties and third-party waste disposal sites.
We have incurred, and will continue to incur, capital and operating expenses and other costs to comply with environmental laws and regulations, including remediation costs relating to our current and former properties and third-party waste disposal sites.
If such cost pressures persist or exceed our estimates and we are not able to increase the prices of our products or achieve cost savings to offset such cost increases, our operating margins would be harmed.
If such cost pressures persist or exceed our estimates and we are not able to increase the prices of our products or achieve cost savings to offset such cost increases, our operating margins would be negatively impacted.
For example, a number of our products are regulated by health authorities both in the U.S. and in the E.U. (such as the U.S. Food and Drug Administration), and by consumer protection organizations (such as the U.S. Consumer Product Safety Commission). These regulatory frameworks focus on our ingredients as well as the safety and efficacy of our products.
For example, a number of our products are regulated by health authorities both in the U.S. and in the E.U. (such as the U.S. FDA), and by consumer protection organizations (such as the U.S. Consumer Product Safety Commission). These regulatory frameworks focus on our ingredients as well as the safety and efficacy of our products.
Our ability to compete effectively may be affected by a number of factors, including: • several of our competitors, including The Procter & Gamble Company, Unilever, Johnson & Johnson and others, may have substantially greater financial, marketing, research and development and other resources and greater market share in certain segments than we do, which could provide them with greater scale and negotiating leverage with retailers 11 and suppliers, and other competitors are newer companies backed by private-equity investors with the goal of expanding revenue instead of profitability; • our competitors may have lower production, sales and distribution costs, and higher profit margins, which may enable them to offer aggressive retail discounts and other promotional incentives; • our competitors may be able to obtain exclusive distribution rights at particular retailers or favorable in-store placement; • our retailers could reduce inventories, shift to different products, or require us to lower our prices to retain shelf placement of our products; and • we may lose market share to private label brands sold by retail chains, or to price brands sold by local and regional competitors, which, in each case, are typically sold at lower prices than our products.
Our ability to compete effectively may be affected by a number of factors, including: • several of our competitors, including The Procter & Gamble Company, Unilever, Kenvue and others, may have substantially greater financial, marketing, research and development and other resources and greater market share in certain segments than we do, which could provide them with greater scale and negotiating leverage with retailers and suppliers; • our competitors may have lower production, sales and distribution costs, and higher profit margins, which may enable them to offer aggressive retail discounts and other promotional incentives; 11 • our competitors may be able to obtain exclusive distribution rights at particular retailers or favorable in-store placement; • our retailers could reduce inventories, shift to different products, or require us to lower our prices to retain shelf placement of our products; and • we may lose market share to private label brands sold by retail chains, or to price brands sold by local and regional competitors, which, in each case, are typically sold at lower prices than our products.
We may not be able to continue to identify and complete strategic acquisitions and effectively integrate acquired companies to achieve desired financial benefits. We have completed a number of acquisitions, and we expect to continue making acquisitions if appropriate opportunities arise. Acquisitions could be a key use of our cash and a potential driver of future growth.
We may not be able to effectively integrate acquired companies to achieve desired financial benefits. We have completed a number of acquisitions, and we expect to continue making acquisitions if appropriate opportunities arise. Acquisitions could be a key use of our cash and a potential driver of future sales and profit growth.
We have a substantial level of indebtedness and are subject to various covenants relating to such indebtedness, which could limit our discretion to operate and grow our business. As of September 30, 2023, our debt level was approximately $1.4 billion.
We have a substantial level of indebtedness and are subject to various covenants relating to such indebtedness, which could limit our discretion to operate and grow our business. As of September 30, 2024, our debt level was $1.3 billion.
As cybersecurity threats rapidly evolve in sophistication and become more prevalent across the industry globally, we are continually increasing our attention to these threats.
As cybersecurity threats rapidly evolve in sophistication and become more prevalent globally, we are continually increasing our attention and efforts to these potential threats.
The loss or a substantial decrease in the volume of purchases by any of our top customers would harm our sales and profitability. Increasing retailer customer concentration could result in reduced sales outlets for our products, as well as greater negotiating pressures and pricing requirements.
As a result, these customers may decrease their level of purchases from us at any time. The loss or a substantial decrease in the volume of purchases by any of our top customers would harm our sales and profitability. Increasing customer concentration could result in reduced sales outlets for our products, as well as greater negotiating pressures and pricing requirements.
Protracted unfavorable market conditions have caused many of our customers to more critically analyze the number of brands they sell, which could lead to the retailer reducing or discontinuing certain of our product lines, particularly those products that were not number one or two in their category.
Protracted unfavorable market conditions have caused many of our customers to more critically analyze the number of brands they sell, which could lead to the retailer reducing or discontinuing certain of our product lines, particularly those products that were not number one or two in their category. We face risks arising from our ongoing efforts to achieve cost savings.
We are subject to risks related to our international operations, including currency fluctuations, which could adversely affect our results of operations. Our businesses are conducted on a worldwide basis, with nearly 41% of our net sales in fiscal 2023 originating outside the U.S., and a significant portion of our production capacity and cash are located overseas.
We are subject to risks related to our international operations, including currency fluctuations, which could adversely affect our results of operations. We conduct business on a global basis, with nearly 44% of our net sales in fiscal 2024 originating outside the U.S., and a significant portion of our production capacity and cash are located overseas.
While certain of our relationships with these third parties are subject to minimum volume commitments, whereby the third-party manufacturer has committed to produce and we have committed to purchase a minimum quantity of product, we may nonetheless experience situations where such manufacturers are unable to fulfill their obligations under our agreements. 16 Our manufacturing facilities, supply channels or other business operations may be subject to disruption from events beyond our control.
While certain of our relationships with these third parties are subject to minimum volume commitments, whereby the third-party manufacturer has committed to produce and we have committed to purchase a minimum quantity of product, we may nonetheless experience situations where such manufacturers are unable to fulfill their obligations under our agreements.
Adverse incidents related to corporate citizenship or sustainability matters could impact the value of our brands, the cost of our operations, and our relationships with existing and future investors, which could have a material adverse effect on our business.
Adverse incidents related to corporate citizenship or sustainability matters could impact the value of our brands, the cost of our operations, and our relationships with existing and future investors, which could have a material adverse effect on our business. In addition, in recent years, investor advocacy groups and certain institutional investors have placed increasing importance on sustainability.
Changes in the policies of our retailer customers and increasing dependence on key retailer customers in developed markets may adversely affect our business. 14 In recent years, retailer consolidation both in the U.S. and internationally has increased.
Changes in the policies of our customers and increasing dependence on an omnichannel strategy in developed markets may adversely affect our business. In recent years, an omnichannel strategy in both in the U.S. and internationally has gained increasing importance.
Although we maintain product liability insurance, this insurance does not cover all types of claims, particularly claims other than those involving personal injury or property damage or claims that exceed the amount of insurance coverage. Further, we may not be able to maintain such insurance in sufficient amounts, on desirable terms, or at all, in the future.
Although we maintain product liability insurance, this insurance does not cover all types of claims, particularly claims other than those involving personal injury or property damage or claims that exceed the amount of insurance coverage.
Because of the highly competitive environment in which we operate, as well as increasing retailer concentration, our retailer customers, including online retailers, frequently seek to obtain pricing concessions or better trade terms, resulting in either reduction of our margins or losses of distribution to lower cost competitors.
Because of the highly competitive environment in which we operate, as well as increasing omni-channel retailer concentration, our customers, frequently seek to obtain pricing concessions or better trade terms, resulting in either reduction of our gross margins or losses of distribution to lower cost competitors. Competition is based upon brand perceptions, product performance and innovation, customer service and price.
Our operating results could be adversely affected if one of our leading brands suffers damage to its reputation due to real or perceived quality issues. Further, the success of our brands can suffer if our marketing plans or new product offerings do not improve or have a negative impact on our brands’ image or ability to attract and retain consumers.
Further, the success of our brands can suffer if our marketing plans or new product offerings do not improve or have a negative impact on our brands’ image or ability to attract and retain consumers.
We rely extensively on information technology systems in order to conduct business, including some that are managed by third-party service providers.
Information Technology and Systems A failure of a key information technology system or a breach of our information security could adversely impact our ability to conduct business. We rely extensively on information technology systems in order to conduct business, including some that are managed by third-party service providers.
In addition, international tax reform remains a priority with the Organization for Economic Cooperation and Development’s Action Plan on Base Erosion & Profit Shifting and other proposed foreign jurisdictional tax law changes.
In addition, international tax reform remains a priority with the Organization for Economic Cooperation and Development’s Action Plan on Base Erosion & Profit Shifting and other proposed foreign jurisdictional tax law changes. Given the uncertainty of the possible changes and their potential interdependency, we are unable to determine the net consolidated impact of changes in global tax legislation, if any.
We may not be able to attract, retain and develop key personnel. Our future performance depends in significant part upon the continued service of our executive officers and other key personnel.
Our projections may not accurately predict the potential negative volume impact of price increases, which could adversely affect our business, financial condition and results of operations. We may not be able to attract, retain and develop key personnel. Our future performance depends in significant part upon the continued service of our executive officers and other key personnel.
Loss of reputation of our leading brands or failure of our marketing plans could have an adverse effect on our business. We depend on the continuing reputation and success of our brands, particularly the Schick, Wilkinson Sword, Billie, Edge, Skintimate, Playtex, Wet Ones, Banana Boat, Hawaiian Tropic, Bulldog, Cremo, Jack Black, Stayfree, Carefree and o.b. brands.
We depend on the continuing reputation and success of our brands, particularly the Schick, Wilkinson Sword, Billie, Edge, Skintimate, Playtex, Wet Ones, Banana Boat, Hawaiian Tropic, Bulldog, Cremo, Jack Black, Stayfree, Carefree and o.b. brands. 16 Our operating results could be adversely affected if one of our leading brands suffers damage to its reputation due to real or perceived quality issues.
Sustained price increases may lead to declines in volume as competitors may not adjust their prices or customers may decide not to pay the higher prices, which could lead to sales declines and loss of market share, and our projections may not accurately predict the volume impact of price increases, which could adversely affect its business, financial condition and results of operations.
Sustained price increases may lead to declines in volume as competitors may not adjust their prices or customers may reduce consumption due to pay the higher prices, which could lead to sales and market share declines.
In addition, our employees frequently access our suppliers’ and customers’ systems and we may be liable if our employees are the source of any breaches in these third-party systems. It could also damage our reputation with retailer customers and consumers and diminish the strength and reputation of our brands or require us to pay monetary penalties.
In addition, our employees frequently access our suppliers’ and customers’ systems and we may be liable if our employees are the source of any breaches in these third-party systems.
The integration process can be complex and time consuming, may be disruptive to our existing and acquired business and may cause an interruption of, or a loss of momentum in, the business.
If we can complete future acquisitions, we may face challenges in consolidating functions and effectively integrating procedures, personnel, product lines, and operations in a timely and efficient manner. The integration process can be complex and time consuming, may be disruptive to our existing and acquired businesses and may cause an interruption of, or a loss of momentum in, the business.
Moreover, the standards by which citizenship and sustainability efforts and related matters are measured are evolving, and certain areas are subject to assumptions which could change over time. In addition, we could be criticized for the scope of such initiatives or goals or perceived as not acting responsibly in connection with these matters.
In addition, we could be criticized for the scope of such initiatives or goals or perceived as not acting responsibly in connection with these matters.
If a major disruption were to occur, it could result in delays in shipments of products to customers or suspension of operations. We maintain business interruption insurance to potentially mitigate the impact of business interruption, but such coverage may not be sufficient to offset the financial or reputational impact of an interruption.
The supply of our raw materials may be similarly disrupted. If a major disruption were to occur, it could result in delays in shipments of products to customers or suspension of operations.
Our business could be negatively impacted by corporate citizenship and sustainability matters. There is an increased focus from certain investors, customers, consumers, employees, and other stakeholders concerning corporate citizenship and sustainability matters. From time to time, we announce certain initiatives, including goals, regarding our focus areas, which include environmental matters, packaging, responsible sourcing, social investments and diversity, equity and inclusion.
From time to time, we announce certain initiatives, including goals, regarding our focus areas, which include environmental matters, packaging, responsible sourcing, social investments and diversity, equity and inclusion. We could fail, or be perceived to have failed, in our achievement of such initiatives or goals, or we could fail in accurately reporting our progress on such initiatives and goals.
Generally, sales to our top customers are made pursuant to purchase orders and we do not have supply agreements or guarantees of minimum purchases from them. As a result, these customers may decrease their level of purchases from us at any time.
Walmart, together with its subsidiaries, is our largest customer, accounting for 17.2% of our net sales in fiscal 2024. Generally, sales to our top customers are made pursuant to purchase orders and we do not have supply agreements or guarantees of minimum purchases from them.
We could fail, or be perceived to have failed, in our achievement of such initiatives or goals, or we could fail in accurately reporting our progress on such initiatives and goals. Such failures could be due to changes in our business (e.g., shifts in business among distribution channels or acquisitions).
Such failures could be due to changes in our business (e.g., shifts in business among distribution channels or acquisitions). Moreover, the standards by which citizenship and sustainability efforts and related matters are measured are evolving, and certain areas are subject to assumptions which could change over time.
Removed
Competition is based upon brand perceptions, product performance and innovation, customer service and price.
Added
Further, we may not be able to maintain such insurance in sufficient amounts, on desirable terms, or at all, in the future. 12 Our business could be negatively impacted by corporate citizenship and sustainability matters. There is increased focus from certain investors, customers, consumers, employees, and other stakeholders concerning corporate citizenship and sustainability matters.
Removed
Given the uncertainty of the possible changes and their potential interdependency, we are unable to determine the net consolidated impact of changes in global tax legislation, if any. 13 Information Technology and Systems A failure of a key information technology system or a breach of our information security could adversely impact our ability to conduct business.
Added
If, as a result of their assessment of our sustainability practices, certain investors are unsatisfied with our actions or progress, they may reconsider their investment in our Company.
Removed
Business and Operational Risk Factors Loss of any of our principal customers could significantly decrease our sales and profitability. Walmart, together with its subsidiaries, is our largest customer, accounting for approximately 19.4% of our net sales in fiscal 2023.
Added
At the same time, there also exists “anti-ESG” sentiment among certain stakeholders and government institutions, and we may face scrutiny, reputational risk, product boycotts, lawsuits or market access restrictions from these parties regarding our sustainability initiatives.
Removed
Our inability to execute a successful e-commerce strategy could have a significant negative impact on our business. Sales of consumer products via e-commerce has gained increasing importance among market participants as more end user customers purchase consumer goods through e-commerce.
Added
Increasing focus on sustainability matters has resulted in, and is expected to continue to result in, evolving legal and regulatory requirements, including mandatory due diligence, disclosure and reporting requirements, as well as a variety of voluntary disclosure frameworks and standards.
Removed
We are engaged in e-commerce sales channels with respect to many of our products; however, if e-commerce and other sales channels were to take significant market share away from traditional brick and mortar retailers, and if we are not successful in achieving sales growth in these sales channels, our business, financial condition and results of operations may be negatively impacted.
Added
We have incurred, and are likely to continue to incur, increased costs complying with such standards and regulations, particularly given the lack of convergence among standards.
Removed
We have invested and continue to invest resources into our e-commerce business to maintain competitiveness in the market. There can be no assurances that these investments and initiatives will be successful. We face risks arising from our ongoing efforts to achieve cost savings.
Added
In addition, our processes and controls may not always comply with evolving standards and regulations for identifying, measuring and reporting sustainability metrics; our interpretation of reporting standards and regulations may differ from those of others; and such standards and regulations may change over time, any of which could result in significant revisions to our goals or reported progress in achieving such goals.
Removed
The supply of our raw materials may be similarly disrupted.
Added
In addition, methodologies for reporting our data may be updated and previously reported data may be adjusted to reflect improvement in availability and quality of third-party data, changing assumptions, changes in the nature and scope of our operations (including from acquisitions and divestitures), and other changes in circumstances.
Removed
However, we may not be able to identify and successfully negotiate suitable strategic acquisitions at attractive valuations, obtain financing for future acquisitions on satisfactory terms or otherwise complete future acquisitions. Our size relative to other companies in our industry may make completing desirable acquisitions more challenging.
Added
Any failure or perceived failure, whether or not valid, to pursue or fulfill our sustainability goals and aspirations or to satisfy various sustainability reporting standards or regulatory requirements within the timelines we announce, or at all, could increase the risk of litigation or result in regulatory actions.
Removed
If we can complete future acquisitions, we may face significant challenges in consolidating functions and effectively integrating procedures, personnel, product lines, and operations in a timely and efficient manner.
Added
It could also damage our reputation with retailer customers and consumers and diminish the strength and reputation of our brands or require us to pay monetary penalties. 14 Business and Operational Risk Factors Loss of any of our principal customers could significantly decrease our sales and profitability.
Added
Our manufacturing facilities, supply channels or other business operations may be subject to disruption from events beyond our control and we may be unable to implement, maintain and ramp efficient and cost-effective manufacturing capabilities at current and any future manufacturing locations.
Added
We maintain business interruption insurance to potentially mitigate the impact of business interruption, but such coverage may not be sufficient to offset the financial or reputational impact of an interruption. Likewise, we will need to implement, maintain and ramp efficient and cost-effective manufacturing capabilities at current and any future manufacturing locations.
Added
Failure to do so may impact our brands, business, prospects, financial condition and operating results. Loss of reputation of our leading brands or failure of our marketing plans could have an adverse effect on our business.
Added
Our Revolving Credit Facility (See Liquidity and Capital Resources for details) contains customary representations and warranties, and affirmative and negative covenants, including limitations on additional indebtedness, dividends, and other distributions, entry into new lines of business, use of loan proceeds, restrictions on liens on the assets of the Company and our subsidiaries, transactions with affiliates and dispositions.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

0 edited+19 added−2 removed0 unchanged
Removed
Item 1C. Not applicable. 19 Item 2. Properties. 20 Item 3. Legal Proceedings. 20 Item 4. Mine Safety Disclosures. 20 PART II Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. 21 Item 6. [Reserved] 22 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. 23 Item 7A.
Added
Item 1C. Cybersecurity. Risk Management and Strategy We have a cybersecurity program to assess, identify, and manage risks from cybersecurity threats. This includes multiple tools and processes for assessing, identifying, and managing material risks from cybersecurity threats.
Removed
Quantitative and Qualitative Disclosures About Market Risk. 39 Item 8. Financial Statements and Supplementary Data. 40
Added
Our efforts are designed to maintain the confidentiality, integrity, and availability of our information and operational technology systems and the data stored on those systems.
Added
The program includes: • Conduct periodic risk assessments to identify cybersecurity risks in our IT systems • Monitor for external threats and manage incident response • Engage third-party security providers for penetration testing and program reviews based on National Institute of Standards and Technology (“NIST”) standards • Perform internal audit reviews of IT-related controls • Assess cybersecurity risks of third-party vendors • Train employees regularly, including phishing simulations The cyber security program is continually adapting to the evolving threat landscape and technology developments.
Added
A multi-functional enterprise cyber security and Infrastructure team reviews and assesses top cybersecurity risks. This assessment is shared with members of senior management, including the CFO and Senior Vice President (“SVP”), IT, and helps guide the Company's cybersecurity operational priorities and strategy.
Added
In addition, cybersecurity risks are integrated into the Company’s broader Enterprise Risk Management program and, when identified, are reported to relevant business and governance leaders within the Company for appropriate action. To support the ongoing identification and management of cybersecurity issues, the Company provides information security employee training, conducts global and targeted phishing simulation campaigns and conducts tabletop exercises.
Added
The Company also deploys a combination of security tools and experts to help prevent, detect, contain, eradicate and recover from potential cybersecurity issues and cyber-attacks. Further, the Company engages third-party consultants and services for cyber threat intelligence, insights and assessments of its cybersecurity risk posture and governance.
Added
The Company’s third-party intake process incorporates cybersecurity risk into the assessment of our third-party vendors when we engage a new vendor or experience a change in relationship with an existing vendor. Further, the Company’s cybersecurity team conducts reviews of its third-party vendors depending on the vendor’s risk profile as determined by its cybersecurity team.
Added
As a global company, we manage a variety of cybersecurity threats and cannot wholly eliminate the risk of adverse impacts from such incidents. However, as of the date of this Form 10-K, we have not identified any cybersecurity threats that have materially affected or are reasonably likely to materially affect our business strategy, results of our operations or financial condition.
Added
For additional information on the risks from cybersecurity threats that we have faced in the past and expect to continue to face in the future, please refer to the “Risk Factors” in Part I, Item 1A of this Form 10-K. 19 Security Policy and Requirements As part of our overall risk management program, we have adopted our Information Security Policy which details the overall risk-based framework and governance for the management and security of our information technology assets and information.
Added
The policy applies to everyone who accesses our data or information resources and all of our information systems and resources, including third parties we engage. Our program aligns with the NIST 2.0 cybersecurity framework. Governance Our Board of Directors are part of the Company’s Cyber Response Task Force and table top simulations.
Added
Additionally, the Board of Directors have delegated to the Audit Committee oversight responsibility of our risk management program, including cybersecurity, business continuity, IT operational resilience, and data privacy. The Audit Committee has specific responsibility for reviewing the status of the security of the Company’s electronic data processing information systems related to the Company’s people, assets and information systems.
Added
The Audit Committee receives regular updates from the SVP, IT, about information security and systems security programs and plans, including emerging trends and progress on overall enterprise cybersecurity programs and priorities. These updates occur at least two times a year, with interim updates as needed.
Added
Additionally, we have protocols by which certain cybersecurity incidents are reported promptly to the Chief Executive Officer, or the Audit Committee, as appropriate. A Cyber dashboard is also provided to the Board of Directors quarterly. Management is responsible for implementing its strategic plans, including identifying, evaluating, managing and mitigating the risks inherent in them, such as cybersecurity risks.
Added
Internal Cybersecurity Team The Information Security organization reports into the SVP, IT and includes a dedicated team of centralized information security experts with extensive cybersecurity knowledge and experience to manage the cyber risk under the leadership of the Director of Information Security.
Added
The team is responsible for the following: • Implementing Enterprise-wide cybersecurity strategy • Developing and enforcing Cybersecurity Policy • Developing and enforcing Cybersecurity Standards • Approving and reviewing Cybersecurity Architecture • Developing and enforcing Cybersecurity Processes • Developing and testing Cybersecurity Incident response • Performing other Cybersecurity operational activities including but not limited to: ◦ Vulnerability management strategy ◦ Network security configurations ◦ Risk Management and oversight of third parties Incident Response We have adopted a cybersecurity incident response plan that is designed to provide a framework across all functions for a coordinated identification and response to security incidents.
Added
The plan specifies the process for identifying, validating, classifying, documenting, and responding to cybersecurity events as well as determining whether reporting of an event is appropriate under regulatory standards. Internal reporting and escalation protocols are in place to ensure the involvement of the SVP, IT, other senior leaders, and the Audit Committee, as appropriate.
Added
Under the plan, we conduct tabletop exercises to test our preparedness and our incident response process, and we provide ongoing training. Risk Factors As a global company serving customers in multiple countries and territories, we routinely experience a wide variety of cybersecurity incidents.
Added
As of the date of this Form 10-K, we have not experienced a cybersecurity incident that has materially affected or is reasonably likely to materially affect our business strategy, results of operation or financial condition.
Added
Additional information on cybersecurity risks we face is discussed in Item 1A, "Risk Factors,” which should be read in conjunction with the information in this section. 20

Item 2. Properties

Properties — owned and leased real estate

3 edited+0 added−0 removed1 unchanged
Biggest changeItem 2. Properties. As of September 30, 2023, we owned or leased 49 properties, 28 in the U.S. and 21 globally. Ten of these properties are used as production plants consisting of 1.8 million square feet that is owned and 0.6 million square feet that is leased.
Biggest changeItem 2. Properties. As of September 30, 2024, we owned or leased 55 properties, 29 in the U.S. and 26 globally. Eleven of these properties are used as production plants consisting of 1.8 million square feet that is owned and 1.3 million square feet that is leased.
Five of these plants are located in the U.S., and five are in other countries. Six of these plants are used exclusively by our Wet Shave segment, one by our Feminine Care segment, two by our Sun and Skin Care segment and one is shared by our Wet Shave and Sun and Skin Care segments.
Five of these plants are located in the U.S., and six are in other countries. Seven of these plants are used exclusively by our Wet Shave segment, one by our Feminine Care segment, two by our Sun and Skin Care segment and one is shared by our Wet Shave and Sun and Skin Care segments.
We also have 14 warehouses consisting of 0.1 million square feet that is owned and 0.8 million square feet that is leased. We operate from 24 different offices throughout the world, totaling 0.3 million square feet, all of which are leased, and includes our corporate headquarters in Shelton, Connecticut.
We also have 15 warehouses consisting of 0.1 million square feet that is owned and 0.8 million square feet that is leased. We operate from 29 different offices throughout the world, totaling 0.6 million square feet, all of which are leased, and includes our corporate headquarters in Shelton, Connecticut.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

7 edited+0 added−0 removed4 unchanged
Biggest changeThe following table sets forth the purchases of our Company’s securities by our Company and any affiliated purchasers within the meaning of Rule 10b-18(a)(3) (17 CFR 240.10b-18(a)(3)) during the fourth quarter of fiscal 2023: Period Total Number of Shares Purchased (1) Average Price Paid per Share (2) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number that May Yet Be Purchased Under the Plans or Programs July 1, 2023 to July 31, 2023 80,892 $ 39.19 80,892 5,307,071 August 1, 2023 to August 31, 2023 314,622 $ 38.51 314,622 4,992,449 September 1, 2023 to September 30, 2023 381,722 $ 38.50 381,772 4,610,677 (1) There were no shares purchased during the quarter related to the surrender of shares of common stock to our Company to satisfy tax withholding obligations in connection with the vesting of restricted stock equivalents.
Biggest changeThe following table sets forth the purchases of our Company’s securities by our Company and any affiliated purchasers within the meaning of Rule 10b-18(a)(3) (17 CFR 240.10b-18(a)(3)) during the fourth quarter of fiscal 2024: Period Total Number of Shares Purchased (1) Average Price Paid per Share (2) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number that May Yet Be Purchased Under the Plans or Programs July 1, 2024 to July 31, 2024 85,658 $ 40.04 85,658 3,438,790 August 1, 2024 to August 31, 2024 89,185 $ 38.56 89,185 3,349,605 September 1, 2024 to September 30, 2024 309,512 $ 36.84 309,512 3,040,093 (1) There were 3,751 shares purchased during the quarter related to the surrender of shares of common stock to our Company to satisfy tax withholding obligations in connection with the vesting of restricted stock equivalents.
During the quarter ended September 30, 2023, our executive officers and directors had no equity trading arrangements nor were there any adoptions, terminations, or modifications to a Rule 10b5-1 equity trading plan or any non-Rule 10b5-1 equity trading arrangements as defined in Item 408 of Regulation S-K. 21 Performance Graph The following graph compares the cumulative five-year total return provided to shareholders of the Company’s common stock relative to the cumulative total returns of the S&P Midcap 400 index and the S&P Household Products index.
During the quarter ended September 30, 2024, our executive officers and directors had no equity trading arrangements nor were there any adoptions, terminations, or modifications to a Rule 10b5-1 equity trading plan or any non-Rule 10b5-1 equity trading arrangements as defined in Item 408 of Regulation S-K. 22 Performance Graph The following graph compares the cumulative five-year total return provided to shareholders of the Company’s common stock relative to the cumulative total returns of the S&P Midcap 400 index and the S&P Household Products index.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Market Information Edgewell common stock is listed and traded on the New York Stock Exchange (“NYSE”) under the symbol “EPC.” There were approximately 4,540 shareholders of record of our common stock as of October 31, 2023.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Market Information Edgewell common stock is listed and traded on the New York Stock Exchange (“NYSE”) under the symbol “EPC.” There were 4,388 shareholders of record of our common stock as of October 31, 2024.
An investment of $100 (with reinvestment of all dividends and other distributions) is assumed to have been made in our common stock and in each of the indices on September 30, 2018 and its relative performance is tracked through September 30, 2023.
An investment of $100 (with reinvestment of all dividends and other distributions) is assumed to have been made in our common stock and in each of the indices on September 30, 2019 and its relative performance is tracked through September 30, 2024.
During fiscal 2023, we repurchased 227,332 shares related to the surrender of shares of common stock to satisfy tax withholding obligations in connection with the vesting of restricted stock equivalent awards.
During fiscal 2024, we repurchased 210,729 shares related to the surrender of shares of common stock to satisfy tax withholding obligations in connection with the vesting of restricted stock equivalent awards.
(2) Includes $0.02 per share of brokerage fee commissions. During fiscal 2023, we repurchased 1,865,353 shares of common stock under the share repurchase authorization from January 2018 for $75.2 million.
(2) Includes $0.02 per share of brokerage fee commissions. During fiscal 2024, we repurchased 1,570,584 shares of common stock under the share repurchase authorization from January 2018 for $58.5 million.
Fiscal year ending September 30. . 9/18 9/19 9/20 9/21 9/22 9/23 Edgewell Personal Care Company $ 100.00 $ 70.28 $ 60.31 $ 78.52 $ 80.90 $ 79.95 S&P Midcap 400 $ 100.00 $ 95.84 $ 92.16 $ 130.75 $ 109.11 $ 123.89 S&P Household Products $ 100.00 $ 135.46 $ 150.26 $ 151.73 $ 132.47 $ 142.05
Fiscal year ending September 30. . 9/19 9/20 9/21 9/22 9/23 9/24 Edgewell Personal Care Company $ 100.00 $ 85.81 $ 111.73 $ 115.11 $ 113.76 $ 111.85 S&P Midcap 400 $ 100.00 $ 96.17 $ 136.43 $ 113.85 $ 129.28 $ 161.30 S&P Household Products $ 100.00 $ 110.93 $ 112.01 $ 97.79 $ 104.86 $ 124.10

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

91 edited+39 added−73 removed40 unchanged
Biggest changeYear Ended September 30, 2023 Gross Profit SG&A Operating Income EBIT Income Taxes Net Earnings Diluted EPS GAAP - Reported $ 940.8 $ 409.6 $ 227.0 $ 147.7 $ 33.0 $ 114.7 $ 2.21 Restructuring and related costs 0.2 0.3 17.1 17.1 4.4 12.7 0.24 Acquisition and integration costs — 7.5 7.5 7.5 1.8 5.7 0.11 SKU rationalization (1.7) — (1.7) (1.7) (0.4) (1.3) (0.03) Sun Care reformulation (1) (1.4) — 1.9 1.9 0.5 1.4 0.03 Legal matters, net income — (6.3) (6.3) (6.3) (1.5) (4.8) (0.09) Pension settlement expense — — — 7.9 2.1 5.8 0.11 Other costs — 0.4 0.4 0.4 0.1 0.3 0.01 Total Adjusted Non-GAAP $ 937.9 $ 407.7 $ 245.9 $ 174.5 $ 40.0 $ 134.5 $ 2.59 GAAP as a percent of net sales 41.8 % 18.2 % 10.1 % GAAP effective tax rate 22.3 % Adjusted as a percent of net sales 41.7 % 18.1 % 10.9 % Adjusted effective tax rate 23.0 % (1) Also includes pre-tax research and development (“R&D) costs of $3.3 related to the reformulation, recall, and destruction of certain Sun Care products 24 Year Ended September 30, 2022 Gross Profit SG&A Operating Income EBIT Income Taxes Net Earnings Diluted EPS GAAP - Reported $ 880.5 $ 389.1 $ 182.3 $ 124.1 $ 24.6 $ 99.5 $ 1.85 Restructuring and related costs 0.1 0.8 16.2 16.2 4.2 12.0 0.23 Acquisition and integration costs 0.8 9.1 9.9 9.9 1.3 8.6 0.16 SKU rationalization 22.5 — 22.5 22.5 5.5 17.0 0.32 Sun Care reformulation 3.5 — 4.6 4.6 1.2 3.4 0.06 Legal matters, net income expense — (7.5) (7.5) (7.5) (1.8) (5.7) (0.11) Value-added tax settlement costs — 3.4 3.4 3.4 1.1 2.3 0.04 Pension settlement expense — — — 1.8 0.4 1.4 0.03 Total Adjusted Non-GAAP $ 907.4 $ 383.3 $ 231.4 $ 175.0 $ 36.5 $ 138.5 $ 2.58 GAAP as a percent of net sales 40.5 % 17.9 % 8.4 % GAAP effective tax rate 19.9 % Adjusted as a percent of net sales 41.8 % 17.6 % 10.7 % Adjusted effective tax rate 20.9 % Year Ended September 30, 2021 Gross Profit SG&A Operating Income EBIT Income Taxes Net Earnings Diluted EPS GAAP — Reported $ 951.2 $ 391.2 $ 239.9 $ 147.1 $ 29.3 $ 117.8 $ 2.13 Restructuring and related charges 0.6 8.7 30.1 30.1 7.5 22.6 0.41 Acquisition and integration costs 1.3 7.1 8.4 8.4 2.1 6.3 0.12 Sun Care reformulation 1.1 — 1.1 1.1 0.3 0.8 0.01 Cost of early retirement of long-term debt — — — 26.1 6.4 19.7 0.36 UK tax rate increase — — — — (0.3) 0.3 — Total Adjusted Non-GAAP $ 954.2 $ 375.4 $ 279.5 $ 212.8 $ 45.3 $ 167.5 $ 3.03 GAAP as a percent of net sales 45.6 % 18.7 % 11.5 % GAAP effective tax rate 19.8 % Adjusted as a percent of net sales 45.7 % 18.0 % 13.4 % Adjusted effective tax rate 21.2 % For further discussion of these items refer to Note 18 of Notes to Consolidated Financial Statements.
Biggest changeYear Ended September 30, 2024 Gross Profit SG&A Operating Income EBIT Income Taxes Net Earnings Diluted EPS GAAP - Reported $ 955.7 $ 430.1 $ 199.3 $ 120.9 $ 22.3 $ 98.6 $ 1.97 Restructuring and repositioning expenses — 0.1 36.0 36.0 8.8 27.2 0.54 Acquisition and integration costs 3.3 2.8 6.1 6.1 1.5 4.6 0.09 Sun Care reformulation — — 4.4 4.4 1.1 3.3 0.07 Wet Ones manufacturing plant fire 12.2 — 12.2 12.2 3.0 9.2 0.18 Legal matters — 3.9 3.9 3.9 1.0 2.9 0.06 Loss on investment — — — 3.1 — 3.1 0.06 Other project costs — 5.3 5.3 5.3 1.2 4.1 0.08 Total Adjusted Non-GAAP $ 971.2 $ 418.0 $ 267.2 $ 191.9 $ 38.9 $ 153.0 $ 3.05 GAAP as a percent of net sales 42.4 % 19.1 % 8.8 % GAAP effective tax rate 18.5 % Adjusted as a percent of net sales 43.1 % 18.5 % 11.9 % Adjusted effective tax rate 20.3 % Year Ended September 30, 2023 Gross Profit SG&A Operating Income EBIT Income Taxes Net Earnings Diluted EPS GAAP - Reported $ 940.8 $ 409.6 $ 227.0 $ 147.7 $ 33.0 $ 114.7 $ 2.21 Restructuring and repositioning expenses 0.2 0.3 17.1 17.1 4.4 12.7 0.24 Acquisition and integration costs — 7.5 7.5 7.5 1.8 5.7 0.11 SKU rationalization (1.7) — (1.7) (1.7) (0.4) (1.3) (0.03) Sun Care reformulation (1) (1.4) — 1.9 1.9 0.5 1.4 0.03 Legal matters — (6.3) (6.3) (6.3) (1.5) (4.8) (0.09) Pension settlement expense — — — 7.9 2.1 5.8 0.11 Other project costs — 0.4 0.4 0.4 0.1 0.3 0.01 Total Adjusted Non-GAAP $ 937.9 $ 407.7 $ 245.9 $ 174.5 $ 40.0 $ 134.5 $ 2.59 GAAP as a percent of net sales 41.8 % 18.2 % 10.1 % GAAP effective tax rate 22.3 % Adjusted as a percent of net sales 41.7 % 18.1 % 10.9 % Adjusted effective tax rate 23.0 % (1) Also includes pre-tax research and development (“R&D) costs of $3.3 related to the reformulation, recall, and destruction of certain Sun Care products 25 Year Ended September 30, 2022 Gross Profit SG&A Operating Income EBIT Income Taxes Net Earnings Diluted EPS GAAP — Reported $ 880.5 $ 389.1 $ 182.3 $ 124.1 $ 24.6 $ 99.5 $ 1.85 Restructuring and repositioning expenses 0.1 0.8 16.2 16.2 4.2 12.0 0.23 Acquisition and integration costs 0.8 9.1 9.9 9.9 1.3 8.6 0.16 SKU rationalization 22.5 — 22.5 22.5 5.5 17.0 0.32 Sun Care reformulation 3.5 — 4.6 4.6 1.2 3.4 0.06 Legal matters, net of income taxes — (7.5) (7.5) (7.5) (1.8) (5.7) (0.11) Value-added tax settlement costs — 3.4 3.4 3.4 1.1 2.3 0.04 Pension settlement expense — — — 1.8 0.4 1.4 0.03 Total Adjusted Non-GAAP $ 907.4 $ 383.3 $ 231.4 $ 175.0 $ 36.5 $ 138.5 $ 2.58 GAAP as a percent of net sales 40.5 % 17.9 % 8.4 % GAAP effective tax rate 19.9 % Adjusted as a percent of net sales 41.8 % 17.6 % 10.7 % Adjusted effective tax rate 20.9 % For further discussion of these items refer to Note 20 of Notes to Consolidated Financial Statements.
Inflation Management recognizes that inflationary pressures may have an adverse effect on our company through higher material, labor and transportation costs, asset replacement costs and related depreciation, healthcare and other costs.
Inflation Management recognizes that inflationary pressures may have an adverse effect on our company through higher material costs, labor and transportation costs, asset replacement costs and related depreciation, healthcare and other costs.
Income Taxes Our annual effective income tax rate is determined based on our income, statutory tax rates and the tax impacts of items treated differently for tax purposes than for financial reporting purposes. Tax law requires certain items to be included in the tax return at different times than the items reflected in the financial statements.
Income Taxes Our annual effective income tax rate is determined based on our income, statutory tax rates and the tax impacts of items treated differently for tax purposes than for financial reporting purposes. Tax law requires certain items to be included in the tax return at different times than the items reflected in our financial statements.
In addition, under the Revolving Credit Facility, the ratio of our EBITDA to total interest expense must exceed 3.0 to 1.0. If we fail to comply with these covenants or with other requirements of the Revolving Credit Facility, the lenders may have the right to accelerate the maturity of the debt.
In addition, under the Revolving Credit Facility, the ratio of our EBITDA to total interest expense must exceed 3.0 to 1.0. If we fail to comply with these covenants or with other requirements of the Revolving Credit Facility, the lenders have the right to accelerate the maturity of the debt.
To the extent the estimates described above change, adjustments to income taxes are made in the period in which the estimate is changed. 36 We operate in multiple jurisdictions with complex tax and regulatory environments, which are subject to differing interpretations by the taxpayer and the taxing authorities.
To the extent the estimates described above change, adjustments to income taxes are made in the period in which the estimate is changed. We operate in multiple jurisdictions with complex tax and regulatory environments, which are subject to differing interpretations by the taxpayer and the taxing authorities.
Some of these differences are permanent, such as expenses that are not deductible in our tax return, and some differences are temporary, reversing over time, such as depreciation expense. These temporary differences create deferred tax assets and liabilities.
Some of these differences are permanent, 36 such as expenses that are not deductible in our tax return, and some differences are temporary, reversing over time, such as depreciation expense. These temporary differences create deferred tax assets and liabilities.
Based upon present information, we believe that its liability, if any, arising from such pending legal proceedings, asserted legal claims, and known potential legal claims which are likely to be asserted, is not reasonably likely to be material to its financial position, results of operations or cash flows, when taking into account established accruals for estimated liabilities.
Based upon present information, we believe that the Company’s liability, if any, arising from such pending legal proceedings, asserted legal claims, and known potential legal claims which are likely to be asserted, is not reasonably likely to be material to its financial position, results of operations or cash flows, when taking into account established accruals for estimated liabilities.
On an ongoing basis, we evaluate our estimates, but actual results could differ materially from those estimates. Our most critical accounting policies are revenue recognition, pension and other postretirement benefits, the valuation of long-lived assets (including property, plant and equipment), income taxes (including uncertain tax positions) and valuation related to acquisitions, goodwill and intangible assets.
On an ongoing basis, we evaluate our estimates, but actual results could differ materially from those estimates. Our most critical accounting estimates are revenue recognition, pension and other postretirement benefits, the valuation of long-lived assets (including property, plant and equipment), income taxes (including uncertain tax positions) and valuation related to goodwill and intangible assets.
We are subject to a number of legal proceedings in various jurisdictions arising out of our operations during the ordinary course of business. Many of these legal matters are in preliminary stages and involve complex issues of law and fact and may proceed for protracted periods of time.
Commitments and Contingencies Legal Proceedings We are subject to a number of legal proceedings in various jurisdictions arising out of our operations during the ordinary course of business. Many of these legal matters are in preliminary stages and involve complex issues of law and fact and may proceed for protracted periods of time.
Specific areas, among others, requiring the application of management’s estimates and judgment include assumptions pertaining to accruals for consumer and trade promotion programs, pension and postretirement benefit costs, share-based compensation, future cash flows associated with impairment testing of goodwill and other long-lived assets, uncertain tax positions, the reinvestment of undistributed foreign earnings and tax valuation allowances.
Specific areas, among others, requiring the application of management’s estimates and judgment include assumptions pertaining to accruals for consumer and trade promotion programs, pension and postretirement benefit costs, future cash flows associated with impairment testing of goodwill and other long-lived assets, uncertain tax positions, the reinvestment of undistributed foreign earnings and tax valuation allowances.
Given our extensive international operations, a significant portion of our cash is denominated in foreign currencies. Refer to Note 16 of Notes to Consolidated Financial Statements for a discussion of the primary currencies to which the Company is exposed .
Given our extensive international operations, a significant portion of our cash is denominated in foreign currencies. Refer to Note 18 of Notes to Consolidated Financial Statements for a discussion of the primary currencies to which the Company is exposed.
As of September 30, 2023, we do not believe such purchase arrangements or termination penalties will have a significant effect on our results of operations, financial position or liquidity position in the future.
As of September 30, 2024, we do not believe such purchase arrangements or termination penalties will have a significant effect on our results of operations, financial position or liquidity position in the future.
The multiples are adjusted given the specific characteristics of the reporting unit including its position in the market relative to the guideline companies and applied to the reporting unit’s operating data to arrive at an 37 indication of value.
The multiples are adjusted given the specific characteristics of the reporting unit including its position in the market relative to the guideline companies and applied to the reporting unit’s operating data to arrive at an indication of fair value.
Actual results that differ from assumptions made are recognized on the balance sheet and subsequently amortized to earnings over future periods. Significant differences in actual experience or significant changes in macroeconomic conditions resulting in changes to assumptions may materially affect pension and other postretirement obligations.
Actual results that differ from assumptions made are recognized on the balance sheet and subsequently amortized to earnings over future periods. Significant differences in actual experience or significant changes in macroeconomic conditions resulting in changes to assumptions may materially affect pension and other post-retirement obligations.
Based on plan assets at September 30, 2023, a one percentage point decrease or increase in expected asset returns would increase or decrease our pension expense by approximately $4.0. In addition, it may increase and accelerate the rate of required pension contributions in the future.
Based on plan assets at September 30, 2024, a one percentage point decrease or increase in expected asset returns would increase or decrease our pension expense by approximately $4.2. In addition, it may increase and accelerate the rate of required pension contributions in the future.
A one percentage point decrease in the discount rate would increase pension obligations by approximately $41.8 at September 30, 2023. As allowed under GAAP, our U.S. qualified pension plan uses market related value, which recognizes market appreciation or depreciation in the portfolio over five years, thereby reducing the short-term impact of market fluctuations.
A one percentage point decrease in the discount rate would increase pension obligations by approximately $49.5 at September 30, 2024. As allowed under GAAP, our U.S. qualified pension plan uses market related value, which recognizes market appreciation or depreciation in the portfolio over five years, thereby reducing the short-term impact of market fluctuations.
The level of returns may fluctuate from our estimates due to several factors, including, but not limited to, weather conditions, customer inventory levels and competitive activity. Based on our fiscal 2023 Sun Care shipments, each percentage point change in our returns rate would have impacted our reported net sales by $2.5 and our reported operating income by $2.4.
The level of returns may fluctuate from our estimates due to several factors, including, but not limited to, weather conditions, customer inventory levels and competitive 35 activity. Based on our fiscal 2024 Sun Care shipments, each percentage point change in our returns rate would have impacted our reported net sales by $4.7 and our reported operating income by $4.8.
Dividends The following is a summary of cash dividends paid and declared per share on the Company’s Common Stock during the year ended September 30, 2023 Date Declared Record Date Payable Date Amount Per Share July 29, 2022 September 2, 2022 October 5, 2022 $ 0.15 November 3, 2022 November 29, 2022 January 4, 2023 $ 0.15 February 3, 2023 March 8, 2023 April 5, 2023 $ 0.15 May 8, 2023 June 7, 2023 July 6, 2023 $ 0.15 August 1, 2023 September 7, 2023 October 4, 2023 $ 0.15 On November 2, 2023, the Board declared a quarterly cash dividend of $0.15 per common share for the third fiscal quarter of 2023.
Dividends The following is a summary of cash dividends paid and declared per share on the Company’s Common Stock during the year ended September 30, 2024 Date Declared Record Date Payable Date Amount Per Share August 1, 2023 September 7, 2023 October 4, 2023 $ 0.15 November 2, 2023 December 6, 2023 January 4, 2024 $ 0.15 February 1, 2024 March 7, 2024 April 4, 2024 $ 0.15 May 8, 2024 June 6, 2024 July 9, 2024 $ 0.15 August 6, 2024 September 4, 2024 October 3, 2024 $ 0.15 On October 31, 2024, the Board declared a quarterly cash dividend of $0.15 per common share for the fourth fiscal quarter of 2024.
Our total borrowings as of September 30, 2023 and 2022 were as follows: Interest Type Currency September 30, 2023 September 30, 2022 Long-term notes fixed USD $ 1,250.0 $ 1,250.0 Revolver loans borrowed under credit facility variable USD 122.0 155.0 Short-term notes payable variable various 19.5 19.0 Total borrowings $ 1,391.5 $ 1,424.0 Our Revolver utilization is summarized below.
Our total borrowings as of September 30, 2024 and 2023 were as follows: Interest Type Currency September 30, 2024 September 30, 2023 Long-term notes fixed USD $ 1,250.0 $ 1,250.0 Revolver loans borrowed under credit facility variable USD 34.0 122.0 Short-term notes payable variable various 24.5 19.5 Total borrowings $ 1,308.5 $ 1,391.5 Our Revolver utilization is summarized below.
Given the various significant events, including restructuring projects and recent acquisitions, we view the use of non-GAAP measures that take into account the impact of these unique events as particularly valuable in understanding our underlying operational results and providing insights into future performance.
Given certain significant events, we view the use of non-GAAP measures that take into account the impact of these unique events as particularly valuable in understanding our underlying operational results and providing insights into future performance.
Environmental Matters Our operations, like those of other companies, are subject to various federal, state, local and foreign laws and regulations intended to protect public health and the environment. These regulations relate primarily to worker safety, air and water quality, underground fuel storage tanks, and waste handling and disposal. Accrued environmental costs at September 30, 2023 were $9.3.
Environmental Matters Our operations, like those of other companies, are subject to various federal, state, local and foreign laws and regulations intended to protect public health and the environment. These regulations relate primarily to worker safety, air and water quality, underground fuel storage tanks, and waste handling and disposal.
At September 30, 2023 and 2022, our reserve on the Consolidated Balance Sheet for returns was $53.5 and $47.5 respectively. 34 We offer a variety of programs, primarily to our retail customers, designed to promote sales of our products.
At September 30, 2024 and 2023, our reserve on the Consolidated Balance Sheet for returns was $50.3 and $53.5, respectively. We offer a variety of trade promotional programs, primarily to our retail customers, designed to promote sales of our products.
Contractual Obligations We have significant contractual obligations to fulfill our business operations including the repayment of short and long term debt, periodic interest payments, minimum levels of pension funding, and other obligations including payments for various leases of real estate, vehicles, and equipment, and minimum fixed costs to be paid to third party logistics vendors.
Refer to Note 19 in Notes to Consolidated Financial Statements for more information. 34 Contractual Obligations We have significant contractual obligations to fulfill our business operations including the repayment of short- and long-term debt, periodic interest payments, minimum levels of pension funding, and other obligations including payments for various leases of real estate, vehicles, and equipment, and minimum fixed costs to be paid to third party logistics vendors.
Segment Profit - Sun and Skin Care For the Years Ended September 30, 2023 %Chg 2022 %Chg Segment profit - prior year $ 108.8 $ 99.0 Organic 28.7 26.4 % 11.4 11.5 % Impact of currency (0.1) (0.1) % (1.6) (1.6) % Segment profit - current year $ 137.4 26.3 % $ 108.8 9.9 % Sun and Skin Care segment profit for fiscal 2023 was $137.4, an increase of $28.6, or 26.3%.
Segment Profit - Sun and Skin Care For the Years Ended September 30, 2024 %Chg 2023 %Chg Segment profit - prior year $ 137.4 $ 108.8 Organic (7.3) (5.3) % 28.7 26.4 % Impact of currency 1.2 0.9 % (0.1) (0.1) % Segment profit - current year $ 131.3 (4.4) % $ 137.4 26.3 % Sun and Skin Care segment profit for fiscal 2024 was $131.3, a decrease of $6.1, or 4.4%.
The increase in fiscal 2023 was driven by favorable changes in working capital and increased earnings. Investing Activities Cash flow used by investing activities was $50.5 in fiscal 2023 as compared to $355.4 in fiscal 2022. Capital expenditures were $49.5 during fiscal 2023, compared to $56.4 in the prior year period.
The increase in fiscal 2024 was driven by favorable changes in working capital, partially offset by decreased earnings. Investing Activities Cash flow used by investing activities was $62.4 in fiscal 2024 as compared to $50.5 in fiscal 2023. Capital expenditures were $56.5 during fiscal 2024, compared to $49.5 in the prior year period.
Net Sales Net Sales - Total Company For the Years Ended September 30, 2023 %Chg 2022 %Chg Net sales - prior year $ 2,171.7 $ 2,087.3 Organic 94.0 4.3 % 80.4 3.9 % Impact of Billie acquisition, net 12.0 0.6 % 74.9 3.6 % Impact of currency (26.1) (1.2) % (70.9) (3.5) % Net sales - current year $ 2,251.6 3.7 % $ 2,171.7 4.0 % For fiscal 2023, net sales were $2,251.6, an increase of $79.9, or 3.7%, including a net benefit of $12.0 or 0.6% from the acquisition of Billie and a $26.1, or 1.2% unfavorable impact due to currency movements.
Net Sales Net Sales - Total Company For the Years Ended September 30, 2024 %Chg 2023 %Chg Net sales - prior year $ 2,251.6 $ 2,171.7 Organic 4.3 0.2 % 94.0 4.3 % Impact of Billie acquisition, net — — % 12.0 0.6 % Impact of currency (2.2) (0.1) % (26.1) (1.2) % Net sales - current year $ 2,253.7 0.1 % $ 2,251.6 3.7 % For fiscal 2024, net sales were $2,253.7, an increase of $2.1, or 0.1%, including a $2.2, or 0.1%, unfavorable impact due to currency movements.
Debt Covenants The Revolving Credit Facility governing our outstanding debt at September 30, 2023 contains certain customary representations and warranties, financial covenants, covenants restricting our ability to take certain actions, affirmative covenants, and provisions relating to events of default.
The Company may also elect to make discretionary contributions. Debt Covenants The Revolving Credit Facility governing our outstanding debt at September 30, 2024 contains certain customary representations and warranties, financial covenants, covenants restricting our ability to take certain actions, affirmative covenants, and provisions relating to events of default.
The dividend will be paid on January 4, 2024 to shareholders of record as the close of business on December 6, 2023. Dividends declared during fiscal 2023 totaled $31.7. Payments made for dividends during fiscal 2023 totaled $31.5.
The dividend will be paid on January 8, 2025 to shareholders of record as the close of business on December 3, 2024. Dividends declared during fiscal 2024 totaled $30.6. Payments made for dividends during fiscal 2024 totaled $30.7.
A summary of our significant accounting policies is contained in Note 2 of Notes to Consolidated Financial Statements. This listing is not intended to be a comprehensive list of all of our accounting policies. Revenue Recognition We derive revenue from the sale of our products.
A summary of our significant accounting policies is contained in Note 2 of Notes to Consolidated Financial Statements. This listing is not intended to be a comprehensive list of all of our accounting policies. Revenue Recognition Our revenue is generated by the sales of finished products to customers.
During the fiscal 2023, we had net repayments of $33.0 under the Revolving Credit Facility, compared to net borrowings of $155.0 in the prior year 31 period. During fiscal 2023, we repurchased $75.2 of our common stock under our 2018 Board authorization to repurchase our common stock (the “Repurchase Plan”) compared to $125.3 in the prior year period.
During fiscal 2024, we had net borrowings of $88.0 under the Revolving Credit Facility, compared to $33.0 in the prior year period. During fiscal 2024, we repurchased $58.5 of our common stock under our 2018 Board authorization to repurchase our common stock (the “Repurchase Plan”) compared to $75.2 in the prior year period.
Operating Results The following table presents changes in net sales for fiscal 2023 and 2022, as compared to the corresponding prior year period, and provides a reconciliation of organic net sales to reported amounts.
Operating Results The following table presents changes in net sales for fiscal 2024 and 2023 and provides a reconciliation of organic net sales to reported amounts.
We continued to navigate the challenging and uncertain inflationary environment and resultant cost pressure with a combination of productivity efforts to achieve efficiencies and lower costs to our Cost of products sold and SG&A expenses and increase focus on revenue management. We can provide no assurance that such mitigation will be available in the future.
We continued to navigate the challenging and uncertain inflationary environment and resultant cost pressure with a combination of productivity efforts to achieve efficiencies and lower costs to our Cost of products sold and SG&A expenses and increase focus on revenue management.
Other Expense (income), Net Other expense (income), net was income of $0.8 in fiscal 2023 compared to income of $13.2 in fiscal 2022, which included currency hedge and remeasurement gains of $12.7 in fiscal 2023 compared to $11.5 in fiscal 2022.
Other Expense (income), Net Other expense (income), net was expense of $1.9 in fiscal 2024 compared to expense of $0.8 in fiscal 2023, which included currency hedge and remeasurement gains of $8.3 in fiscal 2024 compared to $12.7 in fiscal 2023.
Wet Shave Net Sales - Wet Shave For the Years Ended September 30, 2023 %Chg 2022 %Chg Net sales - prior year $ 1,242.5 $ 1,215.9 Organic 0.6 — % 14.3 1.2 % Impact of Billie acquisition, net 12.0 1.0 % 74.9 6.2 % Impact of currency (24.2) (1.9) % (62.6) (5.2) % Net sales - current year $ 1,230.9 (0.9) % $ 1,242.5 2.2 % Wet Shave net sales for fiscal 2023 was $1,230.9, a decrease of $11.6, or 0.9%, as compared to the prior year period, including $24.2 or 1.9% decline due to unfavorable impact from currency, partially offset by an increase of $12.0, or 1.0%, from the Billie Acquisition.
Wet Shave Net Sales - Wet Shave For the Years Ended September 30, 2024 %Chg 2023 %Chg Net sales - prior year $ 1,230.9 $ 1,242.5 Organic 3.0 0.2 % 0.6 — % Impact of Billie acquisition, net — — % 12.0 1.0 % Impact of currency (4.6) (0.3) % (24.2) (1.9) % Net sales - current year $ 1,229.3 (0.1) % $ 1,230.9 (0.9) % Wet Shave net sales for fiscal 2024 were $1,229.3, a decrease of $1.6, or 0.1%, as compared to the prior year period, including $4.6, or 0.3%, unfavorable impact from currency.
We have historically provided defined benefit pension plans to our eligible employees, former employees and retirees. We fund our pension plans in compliance with the Employee Retirement Income Security Act of 1974 or local funding requirements.
We have historically provided defined benefit pension plans to our eligible employees, former employees and retirees. We fund our pension plans in compliance with the Employee Retirement Income Security Act of 1974 or local funding requirements. Further detail on our pension and other post-retirement benefit plans is included in Note 14 of Notes to Consolidated Financial Statements.
Our long-term liquidity may be influenced by our ability to borrow additional funds, renegotiate existing debt, and raise equity under terms that are favorable to us. We may, from time-to-time, seek to repurchase shares of our common stock.
Our long-term liquidity may be influenced by our ability to borrow additional funds, renegotiate existing debt, and raise equity under terms that are favorable to us. We may, from time to time, seek to repurchase shares of our common stock. Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors.
The impact of currency was applied to segments using management’s best estimate. • We utilize “adjusted” non-GAAP measures including gross profit, SG&A, operating income, income taxes, net earnings, and diluted earnings per share internally to make operating decisions.
The impact of currency was applied to segments using management’s best estimate. • Additionally, we utilize “adjusted” non-GAAP measures, including adjusted gross margin, adjusted selling general and administrative (“SG&A”), adjusted operating income, adjusted effective tax rate, adjusted net earnings, and adjusted diluted net earnings per share internally to make operating decisions.
Risk Factors and “Forward-Looking Statements” included within this Annual Report on Form 10-K. Non-GAAP Financial Measures While we report financial results in accordance with GAAP, this discussion also includes non-GAAP measures. These non-GAAP measures are referred to as “adjusted” or “organic” and exclude certain costs deemed non-recurring in nature.
Risk Factors and “Forward-Looking Statements” included within this Annual Report on Form 10-K. Non-GAAP Financial Measures While we report financial results in accordance with GAAP, this discussion also includes non-GAAP measures.
Cash Flows A summary of our cash flow from operating, investing and financing activities is provided in the following table: Fiscal Year 2023 2022 Net cash from (used by): Operating activities $ 216.1 $ 102.0 Investing activities (50.5) (355.4) Financing activities (146.5) (17.6) Effect of exchange rate changes on cash 8.6 (19.5) Net increase (decrease) in cash and cash equivalents $ 27.7 $ (290.5) Operating Activities Cash flow from operating activities was $216.1 in fiscal 2023, as compared to $102.0 in fiscal 2022.
As of September 30, 2024, we were in compliance with the provisions and covenants associated with the Revolving Credit Facility. 32 Cash Flows A summary of our cash flow from operating, investing and financing activities is provided in the following table: Fiscal Year 2024 2023 Net cash from (used by): Operating activities $ 231.0 $ 216.1 Investing activities (62.4) (50.5) Financing activities (179.4) (146.5) Effect of exchange rate changes on cash 3.5 8.6 Net (decrease) increase in cash and cash equivalents $ (7.3) $ 27.7 Operating Activities Cash flow from operating activities was $231.0 in fiscal 2024, as compared to $216.1 in fiscal 2023.
Selling, General and Administrative Expense SG&A was $409.6, or 18.2%, of net sales in fiscal 2023 compared to $389.1, or 17.9%, of net sales in the prior year period primarily due to higher people costs and travel expenses.
Selling, General and Administrative Expense SG&A was $430.1, or 19.1%, of net sales in fiscal 2024 compared to $409.6, or 18.2%, of net sales in the prior year period.
Due to the election of certain terms of the American Rescue Plan Act, we were not required to make any cash contributions to our pension and postretirement plans in fiscal 2023. Pension contributions required beyond fiscal 2024 represent future pension payments to comply with local funding requirements in the U.S. only.
During fiscal 2024, we did not make any contributions to our pension and post-retirement plans. Due to the election of certain terms of the American Rescue Plan Act, we were not required to make any cash contributions to our pension and postretirement plans in fiscal 2023.
Interest Expense Associated with Debt Interest expense associated with debt for fiscal 2023 was $78.5, an increase of $7.1, or 9.9%, as compared to $71.4 in fiscal 2022. The increase in interest expense was the result of higher interest rates and a higher overall debt balance on the Company’s Revolving Credit Facility compared to fiscal 2022.
Interest Expense Associated with Debt Interest expense associated with debt for fiscal 2024 was $76.5, a decrease of $2.0, or 2.5%, as compared to $78.5 in fiscal 2023. The decrease in interest expense was the result of a lower overall debt balance on the Company’s Revolving Credit Facility, partially offset by higher interest rates.
For the Wet Shave and Skin Care reporting units, we elected to perform a quantitative impairment test in fiscal 2023. As part of the quantitative goodwill impairment test, we estimated the fair value of each reporting unit using both market and income approaches of valuation.
Goodwill The Company elected to perform a qualitative assessment of goodwill impairment for the Sun Care reporting unit and a quantitative assessment for the Wet Shave, Skin Care and Fem Care reporting units. In performing a quantitative assessment, we estimated the fair value of each reporting unit by using a weighted income and market approach.
Adjusted net earnings decreased primarily due to unfavorable currency movements. • Diluted net earnings per share during fiscal 2023 was $2.21 compared to earnings of $1.85 in the prior fiscal year. On an adjusted basis, as illustrated in the table below, net earnings per diluted share during fiscal 2023 were $2.59 compared to $2.58 in the prior year.
On an adjusted basis, as illustrated in the table below, net earnings per diluted share during fiscal 2024 were $3.05 compared to $2.59 in the prior year.
Feminine Care Net Sales - Feminine Care For the Years Ended September 30, 2023 %Chg 2022 %Chg Net sales - prior year $ 290.7 $ 286.1 Organic 25.3 8.7 % 4.7 1.6 % Impact of currency (0.8) (0.3) % (0.1) — % Net sales - current year $ 315.2 8.4 % $ 290.7 1.6 % Feminine Care net sales for fiscal 2023 was $315.2, an increase of $24.5, or 8.4%.
Feminine Care Net Sales - Feminine Care For the Years Ended September 30, 2024 %Chg 2023 %Chg Net sales - prior year $ 315.2 $ 290.7 Organic (31.5) (10.0) % 25.3 8.7 % Impact of currency (0.1) — % (0.8) (0.3) % Net sales - current year $ 283.6 (10.0) % $ 315.2 8.4 % Feminine Care net sales for fiscal 2024 were $283.6, a decrease of $31.6, or 10.0%, primarily related to volume decline in Tampons and Pads.
However, current environmental spending estimates could be modified as a result of changes in our plans or our understanding of underlying facts, changes in legal requirements, including any requirements related to global climate change, or other factors. 33 Critical Accounting Policies The methods, estimates and judgments we use in applying our most critical accounting policies have a significant impact on the results we report in our consolidated financial statements.
However, current environmental spending estimates could be modified as a result of changes in our plans or our understanding of underlying facts, changes in legal requirements, including any requirements related to global climate change, or other factors.
The assigned receivables will be discounted using the funding rate from the Tokyo Interbank Market plus 1.1%. Historically, we have generated, and expect to continue to generate, favorable cash flows from operations.
The terms of the agreement expire one year after the date of execution and will be renewed annually unless either party notifies of its intent not to renew. The assigned receivables will be discounted using the funding rate from the Tokyo Interbank Market plus 1.1%. Historically, we have generated, and expect to continue to generate, favorable cash flows from operations.
Effective February 7, 2022, we increased the maximum receivables sold facility amount under the Sixth Amendment to Master Accounts Receivable Purchase Agreement to $180.0 from $150.0.
Effective February 7, 2022, we increased the maximum receivables sold facility amount under the Sixth Amendment to the Accounts Receivable Facility to $180.0 from $150.0. Refer to Note 11 of Notes to the Consolidated Financial Statements for further discussion on the Accounts Receivable Facility.
Current year expense includes higher accounts receivable factoring costs, higher pension expense in the current year, including the loss on the settlement of the Canada Plan of $7.9 compared to a pension benefit in the prior year.
Current year expense reflects lower pension expense compared to the prior period, a loss on investment, and higher interest income. Prior year expense includes the loss on the settlement of the Canada defined benefit pension plan of $7.9.
For further discussion regarding net sales, including a summary of reported versus organic changes, see “Segment Results.” Gross Profit Gross profit was $940.8 in fiscal 2023, as compared to $880.5 in fiscal 2022, an increase of $60.3, or 6.8%, including a $33.7 unfavorable impact from currency movements.
For further discussion regarding net sales, including a summary of reported versus organic changes, see “Segment Results.” Gross Profit Gross profit was $955.7 in fiscal 2024, as compared to $940.8 in fiscal 2023, an increase of $14.9, or 1.6%. Gross margin for fiscal 2024 was 42.4% of net sales compared to 41.8% in the prior year period.
Seasonality Customer orders for sun care products within our Sun and Skin Care segment are highly seasonal. This has historically resulted in higher sun care sales to retailers during the late winter through mid-summer months. Within our Wet Shave segment, sales of women’s products are moderately seasonal, with increased consumer demand in the spring and summer months.
We can provide no assurance that such mitigation will be available in the future. 33 Seasonality Customer orders for sun care products within our Sun and Skin Care segment are highly seasonal. This has historically resulted in higher sun care sales to retailers during the late winter through mid-summer months.
Segment Profit - Wet Shave For the Years Ended September 30, 2023 %Chg 2022 Segment profit - prior year $ 174.5 $ 221.5 Organic 9.3 5.3 % (21.2) (9.5) % Impact of Billie acquisition, net — — % (6.8) (3.1) % Impact of currency (25.5) (14.6) % (19.0) (8.6) % Segment profit - current year $ 158.3 (9.3) % $ 174.5 (21.2) % Wet Shave segment profit for fiscal 2023 was $158.3, a decrease of $16.2, or 9.3%.
Segment Profit - Wet Shave For the Years Ended September 30, 2024 %Chg 2023 Segment profit - prior year $ 158.3 $ 174.5 Organic 47.4 29.9 % 9.3 5.3 % Impact of currency (1.8) (1.1) % (25.5) (14.6) % Segment profit - current year $ 203.9 28.8 % $ 158.3 (9.3) % Wet Shave segment profit for fiscal 2024 was $203.9, an increase of $45.6, or 28.8%, and inclusive of a $1.8, or 1.1%, unfavorable impact from currency.
Research and Development Expense Research and development expense (“R&D”) was $58.5 in fiscal 2023, an increase of $3.0, or 5.4%, compared to the prior year. As a percent of net sales, R&D remained flat at 2.6%.
Research and Development Expense Research and development expense (“R&D”) in fiscal 2024 was $58.4, a decrease of $0.1, or 0.2%, compared to $58.5 in the prior year. R&D remained flat at 2.6% of net sales. Restructuring Charges We incurred $36.0 in restructuring charges in fiscal 2024, consisting largely of severance, project implementation and other exit costs.
Dividend payments totaled $31.5 in fiscal 2023, compared to $32.6 in the prior year period. We had financing outflows for employee equity awards held for taxes totaling $9.0 in fiscal 2023, compared to $10.7 in the prior year period. In January 2018, our Board approved an authorization to repurchase up to 10.0 shares of our common stock.
Dividend payments totaled $30.7 in fiscal 2024, compared to $31.5 in the prior year period. We had financing outflows for employee equity awards held for taxes totaling $7.3 in fiscal 2024, compared to $9.0 in the prior year period.
Under certain circumstances, we allow customers to return Sun Care products that have not been sold by the end of the Sun Care season, which is normal practice in the Sun Care industry. The timing of returns of Sun Care products can vary in different regions, based on climate and other factors.
Customers are required to pay for the Sun Care product purchased during the season under the required terms. Under certain circumstances, we allow customers to return Sun Care products that have not been sold by the end of the Sun Care season, which is normal practice in the Sun Care industry.
Financial items, such as interest income and expense, are managed on a global basis at the corporate level. Our operating model includes some shared business functions across the segments, including product warehousing and distribution, transaction processing functions and, in most cases, a combined sales force and management teams.
Our operating model includes some shared business functions across segments, including product warehousing and distribution, transaction processing functions and, in most cases, a combined sales force and management teams. We apply a fully allocated cost basis in which shared business functions are allocated between segments.
In an effort to mitigate the impact of currency exchange rate effects, we may hedge certain operational and intercompany transactions; however, our hedging strategies may not fully offset gains and losses recognized in our results of operations. 32 Commitments and Contingencies Legal Proceedings During fiscal 2023, the Company settled a legal matter which resulted in a gain of $4.9 related to an intellectual property claim against a third party.
In an effort to mitigate the impact of currency exchange rate effects, we may hedge certain operational and intercompany transactions; however, our hedging strategies may not fully offset gains and losses recognized in our results of operations.
It is difficult to quantify with reasonable certainty the cost of environmental matters, particularly remediation and future capital expenditures for environmental control equipment. Total environmental capital expenditures and operating expenses are not expected to have a material effect on our total capital and operating expenditures, consolidated earnings or competitive position.
Total environmental capital expenditures and operating expenses are not expected to have a material effect on our total capital and operating expenditures, consolidated earnings or competitive position.
The impact of these items on reported net earnings and EPS are provided below as a reconciliation of net earnings and EPS to adjusted net earnings and adjusted diluted EPS, which are non-GAAP measures.
The impact of these items on reported net earnings and EPS are provided as a reconciliation of net earnings and EPS to adjusted net earnings and adjusted diluted EPS, both of which are non-GAAP measures. Fiscal 2024 • Net sales in fiscal 2024 increased $2.1, or 0.1%, to $2,253.7, including a $2.2, or 0.1%, unfavorable impact due to currency movements.
Organic segment profit increased $9.3, or 5.3% primarily driven by growth in International markets and was partially offset by unfavorable impact from currency. 27 Sun and Skin Care Net Sales - Sun and Skin Care For the Years Ended September 30, 2023 %Chg 2022 %Chg Net sales - prior year $ 638.5 $ 585.3 Organic 68.1 10.7 % 61.4 10.5 % Impact of currency (1.1) (0.2) % (8.2) (1.4) % Net sales - current year $ 705.5 10.5 % $ 638.5 9.1 % Sun and Skin Care net sales for fiscal 2023 was $705.5, an increase of $67.0, or 10.5%.
Organic segment profit increased $47.4, or 29.9%, reflecting higher gross margin and lower marketing expense. 28 Sun and Skin Care Net Sales - Sun and Skin Care For the Years Ended September 30, 2024 %Chg 2023 %Chg Net sales - prior year $ 705.5 $ 638.5 Organic 32.8 4.6 % 68.1 10.7 % Impact of currency 2.5 0.4 % (1.1) (0.2) % Net sales - current year $ 740.8 5.0 % $ 705.5 10.5 % Sun and Skin Care net sales for fiscal 2024 were $740.8, an increase of $35.3, or 5.0%.
While we believe that the estimates and assumptions underlying the valuation methodology are reasonable, these estimates and assumptions could have a significant impact on whether an impairment charge is recognized, and also on the magnitude of any such charge. The results of an impairment analysis are as of a point in time.
Determining the fair value of a reporting unit and indefinite-lived intangible assets requires the use of significant judgment, estimates and assumptions. While we believe that the estimates and assumptions underlying the valuation methodologies are reasonable, these estimates and assumptions could have a significant impact on whether an impairment charge is recognized and the magnitude of the charge.
In fiscal 2022, we recorded a charge of $22.5 relating to the write-off of inventory and related contract termination charges associated with a third-party co-manufacturer. During fiscal 2023, the Company released a reserve of $1.7 related to certain accrued expenses associated with the write-off of inventory for certain Wet Ones SKUs.
During fiscal 2023, the Company released a reserve of $1.7 related to certain accrued expenses associated with the write-off of inventory for certain Wet Ones SKUs. This charge was included in Cost of products sold in the Consolidated Statements of Earnings and Comprehensive Income.
The Japan Agreement allows for the sale of up to ¥3,000 (approximately $20.0 using the exchange rate as of September 30, 2023) with limits set between individual customers. The terms of the agreement expire one year after the date of execution and will be renewed annually unless either party notifies of its intent not to renew.
The Japan Agreement allows us to assign third party accounts receivable to the 31 Purchaser and allows for the sale of up to ¥3,000 (approximately $20.0 using the exchange rate as of September 30, 2023) with limits set between individual customers.
The discount rates were based on a weighted-average cost of capital utilizing industry market data of similar companies, in addition to estimated returns on the assets utilized in the operations of the applicable reporting unit, including net working capital, fixed assets and intangible assets. We estimated royalty rates based on operating profits of the brand.
The discount rates were based on a weighted-average cost of capital utilizing industry market data of similar publicly traded companies. Terminal growth rates are based on industry market data. We estimated royalty rates based on the operating profits of the brand.
September 30, 2023 September 30, 2022 Total Revolver Capacity $ 425.0 $ 425.0 Less: Revolver Borrowings 122.0 155.0 Less: Outstanding Letters of Credit 5.9 6.5 Revolver Balance Available $ 297.1 $ 263.5 On February 6, 2023, we amended our Revolving Credit Facility to transition from using the London Interbank Offered Rate (“LIBOR”) to the Secured Overnight Financing Rate (“SOFR”) as LIBOR is no longer available as of June 30, 2023.
Refer to Note 13 of Notes to Consolidated Financial Statement for additional discussion. On February 6, 2023, we amended our Revolving Credit Facility to transition from using the London Interbank Offered Rate (“LIBOR”) to the Secured Overnight Financing Rate (“SOFR”) as LIBOR is no longer available as of June 30, 2023.
The projected contributions for the U.S. pension plans total $7.0 in fiscal 2024, $9.2 in fiscal 2025, $10.4 in fiscal 2026, $10.2 in fiscal 2027, and $10.1 in fiscal 2028. Estimated contributions beyond fiscal 2028 are not determinable. The Company may also elect to make discretionary contributions.
Pension contributions required beyond fiscal 2025 represent future pension payments to comply with local funding requirements in the U.S. only. The projected contributions for the U.S. pension plans total $6.5 in fiscal 2025, $7.0 in fiscal 2026, $5.0 in fiscal 2027, $4.5 in fiscal 2028, and $4.2 in fiscal 2029. Estimated contributions beyond fiscal 2029 are not determinable.
The following tables present changes in segment net sales and segment profit for fiscal 2023 and 2022, as compared to the corresponding prior year periods, and also provide a reconciliation of organic segment net sales and organic segment profit to reported amounts.
The following tables present changes in segment net sales and segment profit for fiscal 2024 and 2023, and also provides a reconciliation of organic segment net sales and organic segment profit to reported amounts. For a reconciliation of Segment profit to Earnings before income taxes, see Note 20 of Notes to Consolidated Financial Statements.
There is no assurance that actual future earnings or cash flows of the reporting units will not decline significantly from these projections. We will monitor any changes to these assumptions and will evaluate goodwill as deemed warranted during future periods.
The results of an impairment analysis are as of a point in time. There is no assurance that actual future earnings or cash flows of the reporting units will not decline significantly from these projections.
Organic net sales increased $94.0, or 4.3%, reflecting growth in all segments, as increased pricing was only partly offset by a slight decrease in volumes. International markets increased 6.2%, reflecting both volume and price gains and were driven by strong double digit growth in Sun and Skin Care, and low single digit growth in Wet Shave.
Organic net sales increased $4.3, or 0.2%, as 7.3% growth in international markets, reflecting both increased volumes and price, was partially offset by a 3.8% decrease in North America organic net sales, primarily reflecting volume declines in Feminine Care, Wet Shave and Wet Ones, partially offset by organic growth across Sun Care and Grooming.
In fiscal 2022, we completed the Billie acquisition for $309.4, net of cash acquired. Financing Activities Net cash used by financing activities was $146.5 in fiscal 2023 as compared to $17.6 in fiscal 2022.
The increase in cash used by investing activities is also due to an outflow of $6.5 for an investment in a business. Financing Activities Net cash used by financing activities was $179.4 in fiscal 2024 as compared to $146.5 in fiscal 2023.
This charge was included in Cost of products sold in the Consolidated Statements of Earnings and Comprehensive Income. In fiscal 2023, the Company recorded a charge of $7.9 related to the wind-up of its Canadian defined benefit pension plan. For further information see Note 12 of Notes to Consolidated Financial Statements.
Also, during fiscal 2023, the Company recorded a charge of $7.9 related to the wind-up of its Canadian defined benefit pension plan. For further information see Note 14 of Notes to Consolidated Financial Statements. 30 Liquidity and Capital Resources At September 30, 2024, we had cash of $209.1, a significant portion of which was located outside the U.S.
See “Our business is subject to seasonal volatility” in Item 1A. Risk Factors. Foreign Currency Certain net sales and costs of our international operations are denominated in the local currency of the respective countries. As such, sales and profits from these subsidiaries may be impacted by fluctuations in the value of these local currencies relative to the U.S. dollar.
Within our Wet Shave segment, sales of women’s products are moderately seasonal, with increased consumer demand in the spring and summer months. See “Our business is subject to seasonal volatility” in Item 1A. Risk Factors. Foreign Currency Certain net sales and costs of our international operations are denominated in the local currency of the respective countries.
Declines in earnings in lower tax rate jurisdictions, earnings increases in higher tax rate jurisdictions, or repatriation of foreign earnings or operating losses in the future could increase future tax rates.
Declines in earnings in lower tax rate jurisdictions, earnings increases in higher tax rate jurisdictions, or repatriation of foreign earnings or operating losses in the future could increase future tax rates. Additionally, adjustments to prior year tax provision estimates could increase or decrease future tax provisions. 27 Segment Results Segment performance is evaluated based on segment profit, excluding certain U.S.
Promotions which reduce the ultimate consumer sale prices are recorded as a reduction of net sales at the time the promotional offer is made, generally using estimated redemption and participation levels. Taxes we collect on behalf of governmental authorities, which are generally included in the price to the customer, are also recorded as a reduction of net sales.
Promotions which reduce the ultimate consumer sale prices are recorded as a reduction of net sales at the time the promotional offer is made, generally using estimated redemption and participation levels. The actual amounts paid may be different from such estimates. These differences, which have historically not been significant, are recognized as a change in estimate in a subsequent period.
We also have significant intercompany financing arrangements that may result in gains and losses in our results of operations.
As such, sales and profits from these subsidiaries may be impacted by fluctuations in the value of these local currencies relative to the U.S. dollar. We also have significant intercompany financing arrangements that may result in gains and losses in our results of operations.
Advertising and Sales Promotion Expense For fiscal 2023, A&P was $229.1, down $9.2, or 3.9%, compared to fiscal 2022. A&P as a percent of net sales was 10.2% for fiscal 2023, compared with 11.0% in fiscal 2022. The decrease in A&P was primarily due to lower media spend and agency fees partially offset by higher investment in Feminine Care.
A&P was 10.3% of net sales for fiscal 2024, compared with 10.2% in fiscal 2023. The increase in A&P was primarily due to incremental investment in Women’s grooming and Sun Care, partially offset by Wet Shave.
Income Tax Provision Income taxes, which include federal, state and foreign taxes, were 22.3% and 19.9% of Earnings before income taxes in fiscal 2023 and 2022, respectively. On an adjusted basis, the effective tax rate for fiscal 2023 was 23.0% compared to 20.9% in the prior year.
Income Tax Provision Income taxes, which include federal, state and foreign taxes, were 18.5% and 22.3% of Earnings before income taxes in fiscal 2024 and 2023, respectively. The fiscal 2024 effective tax rate reflects a favorable mix of earnings in lower tax rate jurisdictions and the impact of a change in the Company’s prior estimates.
Subsequent to the acquisition of Billie, profit previously earned on sales to Billie was deferred until Billie sold to a third party. ◦ Segment profit will be impacted by fluctuations in translation and transactional foreign currency.
Organic net sales and organic segment profit exclude the impact of changes in foreign currency translation. • Segment profit will be impacted by fluctuations in translation and transactional foreign currency.
The Japan Agreement was between Schick Japan K.K. and Concerto Receivables Corporation (the “Purchaser”), Tokyo Branch, a subsidiary of MUFG Bank, LTD., which allows us to assign third party accounts receivable to the Purchaser.
On August 5, 2022, we entered into that certain Master Receivable Assignment Agreement between the Company’s wholly-owned subsidiary Schick Japan K.K. and Concerto Receivables Corporation (the “Purchaser”), Tokyo Branch, a subsidiary of MUFG Bank, LTD. (the "Japan Agreement").
Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. 30 In fiscal 2024, we expect our total capital expenditures to be in the range of $55 to $65 primarily on maintenance and productivity efforts across manufacturing facilities, new product development and information technology system enhancements.
In fiscal 2025, we expect our total capital expenditures to be in the range of $60 to $70 primarily on maintenance and productivity efforts across manufacturing facilities, new product development and information technology system enhancements. While we intend to fund these capital expenditures with cash generated from operations, we may also utilize our borrowing facilities.

… 123 more changes not shown on this page.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

10 edited+0 added−0 removed9 unchanged
Biggest changeThere were five open foreign currency derivative contracts which were not designated as cash flow hedges at September 30, 2023, with a notional value of approximately $34.5.
Biggest changeThere was one open foreign currency derivative contract with a notional value of $9.0. which was not designated as a cash flow hedge at September 30, 2024.
Derivatives Designated as Cash Flow Hedging Relationships At September 30, 2023, we maintained a cash flow hedging program related to foreign currency risk. These derivative instruments have a high correlation to the underlying exposure being hedged and have been deemed highly effective by the Company for accounting purposes in offsetting the associated risk.
Derivatives Designated as Cash Flow Hedging Relationships At September 30, 2024, we maintained a cash flow hedging program related to foreign currency risk. These derivative instruments have a high correlation to the underlying exposure being hedged and have been deemed highly effective by the Company for accounting purposes in offsetting the associated risk.
At times, we have used, and may in the future, use hedging instruments to reduce exposure to variability in cash flows associated with future purchases of certain materials and commodities. At September 30, 2023, there were no open derivative or hedging instruments for future purchases of raw materials or commodities.
At times, we have used, and may in the future, use hedging instruments to reduce exposure to variability in cash flows associated with future purchases of certain materials and commodities. At September 30, 2024, there were no open derivative or hedging instruments for future purchases of raw materials or commodities.
For further information on our derivatives not designated as cash flow hedging relationships, see Note 16 of Notes to Consolidated Financial Statements. 39 Commodity Price Exposure We use raw materials that are subject to price volatility.
For further information on our derivatives not designated as cash flow hedging relationships, see Note 18 of Notes to Consolidated Financial Statements. 39 Commodity Price Exposure We use raw materials that are subject to price volatility.
Assuming foreign exchange rates versus the U.S. dollar remain at September 30, 2023 levels over the next 12 months, the majority of the pre-tax gain included in AOCI at September 30, 2023 is expected to be included in Other expense (income), net. Contract maturities for these hedges extend into fiscal year 2025.
Assuming foreign exchange rates versus the U.S. dollar remain at September 30, 2024 levels over the next 12 months, the majority of the pre-tax gain included in AOCI at September 30, 2024 is expected to be included in Other expense (income), net. Contract maturities for these hedges extend into fiscal year 2026.
Interest Rate Exposure Our exposure to interest rate risk relates primarily to our variable-rate debt instruments, which currently bear interest based on LIBOR plus margin. As of September 30, 2023, our outstanding debt included $122.0 related to our Revolving Credit Facility and international, variable-rate note payable.
Interest Rate Exposure Our exposure to interest rate risk relates primarily to our variable-rate debt instruments, which currently bear interest based on LIBOR plus margin. As of September 30, 2024, our outstanding debt included $34.0 related to our Revolving Credit Facility and international, variable-rate note payable.
We enter into forward currency contracts to hedge the cash flow uncertainty associated with currency fluctuations. These transactions are accounted for as cash flow hedges. We had an unrealized pre-tax gains of $4.4 and $11.3 at September 30, 2023 and 2022, respectively, on these forward currency contracts accounted for as cash flow hedges included in Accumulated other comprehensive loss (“AOCI”).
We enter into forward currency contracts to hedge the cash flow uncertainty associated with currency fluctuations. These transactions are accounted for as cash flow hedges. We had unrealized pre-tax gains of $2.4 and $4.4 at September 30, 2024 and 2023, respectively, on these forward currency contracts accounted for as cash flow hedges included in Accumulated other comprehensive loss (“AOCI”).
Assuming a one percent increase in the applicable interest rates, annual interest expense would increase by approximately $1.2. The remaining outstanding debt as of September 30, 2023 is fixed-rate debt. Changes in market interest rates generally affect the fair value of fixed-rate debt, but do not impact earnings or cash flows.
Assuming a one percent increase in the applicable interest rates, annual interest expense would increase by approximately $0.3. The remaining outstanding debt as of September 30, 2024 is fixed-rate debt. Changes in market interest rates generally affect the fair value of fixed-rate debt, but do not impact earnings or cash flows.
The change in the estimated fair value of the foreign currency contracts resulted in a gains of $3.0 and $8.2 for fiscal 2023 and 2022, respectively, which were recorded in Other expense (income), net in the Consolidated Statements of Earnings and Comprehensive Income.
The change in the estimated fair value of the foreign currency contracts resulted in gains of $0.4 and $3.0 for fiscal 2024 and 2023, respectively, which were recorded in Other expense (income), net in the Consolidated Statements of Earnings and Comprehensive Income.
There were 64 open foreign currency contracts at September 30, 2023 with a notional value of approximately $105.4. For further information on our derivatives designated as cash flow hedging relationships, see Note 16 of Notes to Consolidated Financial Statements.
There were 64 open foreign currency contracts at September 30, 2024 with a notional value of $106.5. For further information on our derivatives designated as cash flow hedging relationships, see Note 18 of Notes to Consolidated Financial Statements.

Other EPC 10-K year-over-year comparisons