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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________
FORM 10-Q
_______________________________

(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2024
Or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                         to
Commission File Number: 001-36837
____________________________________________________________________________________________________________
enrlogoa47.jpg
ENERGIZER HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
Missouri36-4802442
(State or other jurisdiction of(I. R. S. Employer
incorporation or organization)Identification No.)
 
533 Maryville University Drive 
St. Louis,Missouri63141
(Address of principal executive offices)(Zip Code)
(314)985-2000
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $.01 per shareENRNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes No

1



Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
    
Non-accelerated filerSmaller reporting company
    
 Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes No

Indicate the number of shares of Energizer Holdings, Inc. common stock, $.01 par value, outstanding as of the close of business on May 3, 2024: 71,790,434.
2


INDEX
 Page
PART I — FINANCIAL INFORMATION 
  
Item 1. Financial Statements (Unaudited) 
  
Consolidated Statements of Earnings and Comprehensive Income (Condensed) for the Quarters and Six Months Ended March 31, 2024 and 2023
Consolidated Balance Sheets (Condensed) as of March 31, 2024 and September 30, 2023
Consolidated Statements of Cash Flows (Condensed) for the Six Months Ended March 31, 2024 and 2023
Consolidated Statements of Shareholders' Equity (Condensed) for the Six Months Ended March 31, 2024 and 2023

              
Notes to Consolidated (Condensed) Financial Statements
  
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
  
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
  
PART II — OTHER INFORMATION 
  
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
  
EXHIBIT INDEX
SIGNATURES




3



ENERGIZER HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME
(Condensed)
(In millions, except per share data - Unaudited)  

 For the Quarters Ended March 31,For the Six Months Ended March 31,
 2024202320242023
Net sales$663.3 $684.1 $1,379.9 $1,449.2 
Cost of products sold410.0 430.8 859.6 897.6 
Gross profit253.3 253.3 520.3 551.6 
Selling, general and administrative expense122.5 118.3 250.6 238.7 
Advertising and sales promotion expense21.4 18.4 68.4 71.8 
Research and development expense7.9 8.0 15.7 15.6 
Amortization of intangible assets14.5 14.5 29.0 30.5 
Interest expense38.7 42.0 79.4 84.9 
Loss/(gain) on extinguishment of debt0.4 0.9 0.9 (2.0)
Other items, net5.5 0.8 24.5 (0.6)
Earnings before income taxes42.4 50.4 51.8 112.7 
Income tax provision10.0 10.4 17.5 23.7 
Net earnings$32.4 $40.0 $34.3 $89.0 
Basic net earnings per common share$0.45 $0.56 $0.48 $1.25 
Diluted net earnings per common share$0.45 $0.55 $0.47 $1.23 
Weighted average shares of common stock - Basic71.8 71.5 71.7 71.4 
Weighted average shares of common stock - Diluted72.6 72.4 72.6 72.3 
Statements of Comprehensive Income: 
Net earnings$32.4 $40.0 $34.3 $89.0 
Other comprehensive (loss)/income, net of tax (benefit)/expense
Foreign currency translation adjustments(2.5)1.4 (3.6)(17.2)
Pension activity, net of tax of $0.1 and $0.3 for the quarter and six months ended March 31, 2024, respectively, and $0.2 and $1.4 for the quarter and six months ended March 31, 2023, respectively.
1.3 0.7 0.4 3.1 
Deferred loss on hedging activity, net of tax of $1.7 and $(4.8) for the quarter and six months ended March 31, 2024, respectively, and $(3.3) and $(8.0) for the quarter and six months ended March 31, 2023, respectively.
4.7 (10.8)(14.9)(24.2)
Total comprehensive income$35.9 $31.3 $16.2 $50.7 

The above financial statements should be read in conjunction with the Notes to Consolidated (Condensed) Financial Statements (Unaudited).
4


ENERGIZER HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(Condensed)
(In millions - Unaudited)
 
AssetsMarch 31,
2024
September 30,
2023
Current assets 
Cash and cash equivalents$158.1 $223.3 
Trade receivables, less allowance for doubtful accounts of $4.7 and $4.6, respectively
333.9 511.6 
Inventories666.1 649.7 
Other current assets200.2 172.0 
Total current assets1,358.3 1,556.6 
Property, plant and equipment, net386.9 363.7 
Operating lease assets91.8 98.4 
Goodwill1,022.3 1,016.2 
Other intangible assets, net1,209.1 1,237.7 
Deferred tax assets91.9 88.4 
Other assets126.6 148.6 
Total assets$4,286.9 $4,509.6 
Liabilities and Shareholders' Equity
Current liabilities
Current maturities of long-term debt$12.0 $12.0 
Current portion of finance leases0.8 0.3 
Notes payable1.0 8.2 
Accounts payable362.0 370.8 
Current operating lease liabilities17.4 17.3 
Other current liabilities274.9 325.6 
Total current liabilities668.1 734.2 
Long-term debt3,225.8 3,332.1 
Operating lease liabilities77.4 84.7 
Deferred tax liabilities10.6 12.4 
Other liabilities113.7 135.5 
Total liabilities4,095.6 4,298.9 
Shareholders' equity
Common stock0.8 0.8 
Additional paid-in capital702.8 750.5 
Retained losses(131.9)(164.8)
Treasury stock(224.6)(238.1)
Accumulated other comprehensive loss(155.8)(137.7)
Total shareholders' equity191.3 210.7 
Total liabilities and shareholders' equity$4,286.9 $4,509.6 

The above financial statements should be read in conjunction with the Notes to Consolidated (Condensed) Financial Statements (Unaudited).
5


ENERGIZER HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Condensed)
(In millions - Unaudited)

 For the Six Months Ended March 31,
 20242023
Cash Flow from Operating Activities  
Net earnings$34.3 $89.0 
Adjustments to reconcile net earnings to net cash flow from operations:
Non-cash integration and restructuring charges8.0 0.9 
Depreciation and amortization58.9 62.5 
Deferred income taxes(6.1)(4.1)
Share-based compensation expense13.3 12.9 
Loss/(gain) on extinguishment of debt0.9 (2.0)
Non-cash items included in income, net10.7 8.4 
Exchange loss included in income29.6 3.5 
Other, net(2.6)1.8 
Changes in current assets and liabilities used in operations67.9 37.3 
Net cash from operating activities214.9 210.2 
Cash Flow from Investing Activities
Capital expenditures(52.0)(18.7)
Proceeds from sale of assets 0.7 
Acquisitions, net of cash acquired(11.6) 
Purchase of available-for-sale securities(5.2) 
Proceeds from sale of available-for-sale securities4.2  
Net cash used by investing activities(64.6)(18.0)
  
Cash Flow from Financing Activities  
Payments on debt with maturities greater than 90 days(141.4)(152.9)
Net decrease in debt with original maturities of 90 days or less(3.6)(5.3)
Dividends paid on common stock(44.2)(43.3)
Taxes paid for withheld share-based payments(4.7)(1.9)
Net cash used by financing activities(193.9)(203.4)
Effect of exchange rate changes on cash(21.6)(0.4)
Net decrease in cash, cash equivalents, and restricted cash(65.2)(11.6)
Cash, cash equivalents, and restricted cash, beginning of period223.3 205.3 
Cash, cash equivalents, and restricted cash, end of period$158.1 $193.7 

The above financial statements should be read in conjunction with the Notes to Consolidated (Condensed) Financial Statements (Unaudited).
6



ENERGIZER HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(Condensed)
(Amounts in millions, Shares in thousands - Unaudited)

Number of SharesAmount
Common StockCommon StockAdditional Paid-in CapitalRetained (Losses)/EarningsAccumulated Other Comprehensive (Loss)/IncomeTreasury StockTotal Shareholders' Equity
September 30, 202371,500 $0.8 $750.5 $(164.8)$(137.7)$(238.1)$210.7 
Net earnings— — — 1.9 — — 1.9 
Share-based payments— — 6.4 — — — 6.4 
Activity under stock plans277 — (16.3)(1.4)— 13.0 (4.7)
Dividends to common shareholders ($0.30 per share)
— — (22.1)— — — (22.1)
Other comprehensive loss— — — — (21.6)— (21.6)
December 31, 202371,777 $0.8 $718.5 $(164.3)$(159.3)$(225.1)$170.6 
Net earnings— — — 32.4 — — 32.4 
Share-based payments— — 7.1 — — — 7.1 
Activity under stock plans13 — (0.5)— — 0.5  
Dividends to common shareholders ($0.30 per share)
— — (22.3) — — (22.3)
Other comprehensive income— — — — 3.5 — 3.5 
March 31, 202471,790 $0.8 $702.8 $(131.9)$(155.8)$(224.6)$191.3 

Number of SharesAmount
Common StockCommon StockAdditional Paid-in CapitalRetained (Losses)/EarningsAccumulated Other Comprehensive (Loss)/IncomeTreasury StockTotal Shareholders' Equity
September 30, 202271,270 $0.8 $828.7 $(304.7)$(145.3)$(248.9)$130.6 
Net earnings— — — 49.0 — — 49.0 
Share-based payments— — 4.6 — — — 4.6 
Activity under stock plans142 — (8.5)(0.3)— 6.9 (1.9)
Dividends to common shareholders ($0.30 per share)
— — (21.9)— — — (21.9)
Other comprehensive loss— — — — (29.6)— (29.6)
December 31, 202271,412 $0.8 $802.9 $(256.0)$(174.9)$(242.0)$130.8 
Net earnings— — — 40.0 — — 40.0 
Share-based payments— — 8.3 — — — 8.3 
Activity under stock plans65 — (2.8) — 2.8  
Dividends to common shareholders ($0.30 per share)— — (22.0) — — (22.0)
Other comprehensive loss— — — — (8.7)— (8.7)
March 31, 202371,477 $0.8 $786.4 $(216.0)$(183.6)$(239.2)$148.4 

The above financial statements should be read in conjunction with the Notes to Consolidated (Condensed) Financial Statement (Unaudited).
7

ENERGIZER HOLDINGS, INC.
NOTES TO CONSOLIDATED (CONDENSED) FINANCIAL STATEMENTS
(In millions - Unaudited)



(1) Description of Business and Basis of Presentation
Description of Business - Energizer Holdings, Inc. and its subsidiaries (Energizer or the Company) is a global manufacturer, marketer and distributor of primary batteries, portable lights, and auto care appearance, performance, refrigerants and fragrance products.

Batteries and lights are sold under the Energizer®, Eveready®, Rayovac® and Varta® brand names. Energizer offers batteries using lithium, alkaline, carbon zinc, nickel metal hydride, zinc air and silver oxide constructions.

Automotive appearance, performance, refrigerants and fragrance products are sold under the Armor All®, STP®, A/C PRO® Refresh Your Car!®, California Scents®, Driven®, Bahama & Co.®, LEXOL® and Eagle One® brands.

Basis of Presentation - The accompanying Consolidated (Condensed) Financial Statements include the accounts of Energizer and its subsidiaries. All significant intercompany transactions are eliminated. Energizer has no material equity method investments, variable interests or non-controlling interests.

The accompanying Consolidated (Condensed) Financial Statements have been prepared in accordance with Article 10 of Regulation S-X and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The year-ended September 30, 2023 Consolidated (Condensed) Balance Sheet was derived from the audited financial statements included in Energizer's Report on Form 10-K, but does not include all disclosures required by U.S. GAAP. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair statement of our operations, financial position and cash flows have been included. Certain reclassifications have been made to the prior year financial statements to conform to the current presentation. Operating results for any quarter are not necessarily indicative of the results for any other quarter or for the full year. These statements should be read in conjunction with the financial statements and notes thereto for Energizer for the year ended September 30, 2023 included in the Annual Report on Form 10-K dated November 14, 2023.

Recently Adopted Accounting Pronouncements In September 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2022-04, Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. The new guidance requires qualitative and quantitative disclosure sufficient to enable users of the financial statements to understand the nature, activity during the period, changes from period to period and potential magnitude of such programs. The amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal periods, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. The Company adopted the required guidance in the first quarter of fiscal 2024.

The Company has a voluntary Supplier Financing Program (the program) in collaboration with certain financial institutions that offers participating suppliers access to a third-party service which allows them to view scheduled payments online and enables them the ability to request payment of their invoices from the financial institutions earlier than the negotiated terms with the Company. The Company is not a party to the negotiations or agreements reached between participating suppliers and third-party financial institutions. The Company's obligations, including the amounts due and payment terms, remain unaffected by our suppliers’ decision to participate in the program. The Company does not provide any form of guarantee or assume any liability in connection with the agreements between our suppliers and the third-party financial institutions involved in the program. As of March 31, 2024 and September 30, 2023, the Company had $56.1 and $60.9, respectively, of outstanding supplier obligations confirmed as valid under the program which are included within Accounts payable on the Consolidated (Condensed) Balance Sheets.

Recently Issued Accounting Pronouncements - In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures. This guidance requires disclosure of incremental segment information on an annual and interim basis. This amendment is effective for our fiscal year ending September 30, 2025 and our interim periods within the fiscal year ending September 30, 2026. We are currently assessing the impact of this guidance on our disclosures.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes: Improvements to Income Tax Disclosures. This guidance requires consistent categories and greater disaggregation of information in the rate reconciliation and disclosures of income taxes paid by jurisdiction. This amendment is effective for our fiscal year ending September 30, 2026. We are currently assessing the impact of this guidance on our disclosures.


8

ENERGIZER HOLDINGS, INC.
NOTES TO CONSOLIDATED (CONDENSED) FINANCIAL STATEMENTS
(In millions - Unaudited)


(2) Revenue Recognition

The Company, through its operating subsidiaries, is one of the world’s largest manufacturers, marketers and distributors of household batteries, specialty batteries and lighting products, and is a leading designer and marketer of automotive fragrance, appearance, performance and air conditioning recharge products. The Company distributes its products to consumers through numerous retail locations worldwide, including mass merchandisers and warehouse clubs, food, drug and convenience stores, electronics specialty stores and department stores, hardware and automotive centers, e-commerce and military stores. The Company sells to its customers through a combination of a direct sales force and exclusive and non-exclusive third-party distributors and wholesalers.

The Company’s revenue is primarily generated from the sale of finished product to customers. Sales predominantly contain a single delivery element, or performance obligation, and revenue is recognized at a single point in time when title, ownership and risk of loss pass to the customer. This typically occurs when finished goods are delivered to the customer or when finished goods are picked up by the carrier at origin or the customer, depending on contract terms.

North America sales are generally through large retailers with nationally or regionally recognized brands.

Our International sales, which includes Latin America, are comprised of modern trade, developing and distributor market groups. Modern trade, which is most prevalent in Western Europe and more developed economies throughout the world, generally refers to sales through large retailers with nationally or regionally recognized brands. Developing markets generally include sales by wholesalers or small retailers who may not have a national or regional presence. Distributors are utilized in other markets where the Company does not have a direct sales force. Each market's determination is based on the predominant customer type or sales strategy utilized in the market.

Supplemental product and market information is presented below for revenues from external customers for the quarters and six months ended March 31, 2024 and 2023:
 For the Quarters Ended March 31,For the Six Months Ended March 31,
Net Sales by products2024202320242023
Batteries$460.1 $480.1 $1,051.5 $1,119.6 
Auto Care182.3 178.2 281.1 271.7 
Lights20.9 25.8 47.3 57.9 
Total Net Sales$663.3 $684.1 $1,379.9 $1,449.2 

 For the Quarters Ended March 31,For the Six Months Ended March 31,
 2024202320242023
Net Sales by markets 
North America$416.9 $430.9 $833.2 $887.2 
Modern Markets110.4 111.7 265.4 265.3 
Developing Markets89.2 96.3 195.2 204.8 
Distributors Markets46.8 45.2 86.1 91.9 
 Total Net Sales$663.3 $684.1 $1,379.9 $1,449.2 

(3) Acquisitions

Belgium Acquisition - On October 27, 2023, the Company acquired certain battery manufacturing assets in Belgium from Advanced Power Solutions Belgium NV (APS) for a contractual purchase price of EUR3.5 (Belgium Acquisition). The Company also acquired certain raw materials from APS, procured by APS on the Company's behalf to facilitate the transition, for a total acquisition purchase price of $11.6 (including value added taxes). The Company assumed a building lease as part of the acquisition and acquired these assets to provide a battery manufacturing location in Europe. The Company has preliminarily recorded $0.7 of goodwill in the Battery & Lights reporting unit as of March 31, 2024, but is still finalizing income tax considerations associated with the acquisition.
9

ENERGIZER HOLDINGS, INC.
NOTES TO CONSOLIDATED (CONDENSED) FINANCIAL STATEMENTS
(In millions - Unaudited)



The Company recorded $0.7 and $3.3 of acquisition and integration costs associated with the Belgium Acquisition during the quarter and six months ended March 31, 2024, respectively. The costs included $2.9 of operating costs recorded in Costs of good sold for the six months ended March 31, 2024, as the Company was awaiting the receipt of the raw materials procured on the Company's behalf by APS. These costs were offset by $1.0 of income during the six months ended March 31, 2024, recorded in Other items, net, from producing inventory for APS under a transaction services agreement (TSA) entered into at the closing of the transaction. No further income is expected from this TSA. The Company also recorded $0.7 and $1.4 of legal and diligence fees associated with the closing of this acquisition recorded in Selling, general and administrative expenses during the quarter and six months ended March 31, 2024, respectively.

There were no acquisition and integration costs during the six months ended March 31, 2023.

(4) Restructuring

Project Momentum Restructuring - In November 2022, the Board of Directors approved a profit recovery program, Project Momentum, which includes an enterprise-wide restructuring focused on recovering operating margins, optimizing our manufacturing, distribution and global supply chain networks, and enhancing our organizational efficiency throughout the Company. In July 2023, the Company's Board of Directors approved an expansion to the Project Momentum profit recovery program and delegated authority to the Company's management to determine the final actions with respect to the plan. The expansion of this program included an additional year, which will allow for additional optimization of our battery manufacturing, distribution and global supply chain networks, further review of our global real estate footprint and the implementation of IT systems that will allow us to streamline our organization and fully execute the program.

Following the Belgium Acquisition in the first quarter of fiscal 2024, the Company expanded the Project Momentum program and increased the savings and cost expectations, partially due to the impact the expanded manufacturing capacity will have on the Company's battery network. It is estimated that the Company will incur total pre-tax exit-related cash operating costs associated with the program of approximately $140 to $150, non-cash costs of approximately $20, and capital expenditures of $75 to $85 through the end of fiscal 2025.

The pre-tax expense for charges related to the restructuring for the quarters and six months ended March 31, 2024 and 2023 are noted in the table below, and were reflected in the Consolidated (Condensed) Statement of Earnings and Comprehensive Income:

For the Quarters Ended March 31,For the Six Months Ended March 31,
2024202320242023
Project Momentum Restructuring Program
Costs of products sold
Severance and related benefit costs$0.4 $4.9 $0.9 $4.9 
Accelerated depreciation & asset write-offs3.4 0.9 4.7 0.9 
Other restructuring related costs(1)
11.7 (0.1)22.7 0.2 
Selling, general and administrate expense
Severance and related benefit costs1.0  2.8 0.6 
Accelerated depreciation & asset write-offs0.5  1.0  
Other restructuring related costs(2)
3.1 1.8 6.5 7.5 
Momentum Restructuring Cost Total$20.1 $7.5 $38.6 $14.1 
     IT enablement(3)
3.3  7.2  
Total restructuring and related costs$23.4 $7.5 $45.8 $14.1 
(1) Includes charges primarily related to consulting, relocation, decommissioning, and other facility exit costs.
(2) Primarily includes consulting, real estate rationalization costs, and legal fees for the restructuring program.
(3) Relates to operating expenses for new IT systems, primarily the organizational design and change management costs, which are enabling the Company to complete restructuring initiatives. Costs are included in SG&A in the Consolidated (Condensed) Statement of Earnings and Comprehensive Income.

10

ENERGIZER HOLDINGS, INC.
NOTES TO CONSOLIDATED (CONDENSED) FINANCIAL STATEMENTS
(In millions - Unaudited)


Although the Company's restructuring costs are recorded outside of segment profit, if allocated to the reportable segments, the pre-tax restructuring and related costs for the quarter and six months ended March 31, 2024 would be incurred within the Battery & Lights segment in the amounts of $20.5 and $41.2, respectively, and the Auto Care segment in the amount of $2.9 and $4.6, respectively. For the quarter and six months ended March 31, 2023, the pre-tax restructuring and related costs would have been incurred within the Battery & Lights segment in the amount of $6.8 and $12.6, respectively, and the Auto Care segment in the amount of $0.7 and $1.5, respectively.

The following table summarizes the restructuring and related costs reserve activity related to the Project Momentum restructuring program for the six months ended March 31, 2023 and 2024:
Utilized
September 30, 2022 (1)
Charge to IncomeCashNon-Cash
March 31, 2023 (1)
Severance & termination related costs$ $5.5 $0.6 $ $4.9 
Accelerated depreciation & asset write-offs 0.9  0.9  
Other restructuring related costs0.9 7.7 7.1  1.5 
    Total restructuring and related costs$0.9 $14.1 $7.7 $0.9 $6.4 
Utilized
September 30, 2023 (1)
Charge to IncomeCashNon-Cash
March 31, 2024 (1)
Severance & termination related costs$15.4 $3.7 $8.0 $ $11.1 
Accelerated depreciation & asset write-offs 5.7  5.7  
Other restructuring related costs3.3 29.2 29.1 1.5 1.9 
IT enablement0.9 7.26.4 0.2 1.5 
    Total restructuring and related costs$19.6 $45.8 $43.5 $7.4 $14.5 
(1) The restructuring and related costs reserve is recorded on the Consolidated (Condensed) Balance Sheet in Other current liabilities and Other long term liabilities.

11

ENERGIZER HOLDINGS, INC.
NOTES TO CONSOLIDATED (CONDENSED) FINANCIAL STATEMENTS
(In millions - Unaudited)


(5) Segments

Operations for Energizer are managed via two product segments: Batteries & Lights and Auto Care. Segment performance is evaluated based on segment operating profit, exclusive of general corporate expenses (including share-based compensation costs), amortization of intangibles, acquisition and integration activities, restructuring and related costs, and other items determined to be corporate in nature. Financial items, such as interest income and expense and the (loss)/gain on extinguishment of debt are managed on a global basis at the corporate level. The exclusion of restructuring costs and acquisition and integration costs from segment results reflects management’s view on how it evaluates segment performance.

Energizer’s operating model includes a combination of standalone and shared business functions between the product segments, varying by country and region of the world. Shared functions include the sales and marketing functions, as well as human resources, IT and finance shared service costs. Energizer applies a fully allocated cost basis, in which shared business functions are allocated between segments. Such allocations are estimates, and may not represent the costs of such services if performed on a standalone basis.

Segment sales and profitability for the quarters and six months ended March 31, 2024 and 2023 are presented below:
 For the Quarters Ended March 31,For the Six Months Ended March 31,
2024202320242023
Net Sales  
Batteries & Lights$481.0 $505.9 $1,098.8 $1,177.5 
Auto Care182.3 178.2 281.1 271.7 
Total Net Sales$663.3 $684.1 $1,379.9 $1,449.2 
Segment Profit  
Batteries & Lights$113.5 $114.5 $245.9 $252.8 
Auto Care40.4 29.4 47.3 40.0 
Total segment profit$153.9 $143.9 $293.2 $292.8 
    General corporate and other expenses (1) (28.3)(27.8)(57.5)(53.2)
    Amortization of intangible assets(14.5)(14.5)(29.0)(30.5)
Restructuring and related costs (2)(23.4)(7.5)(45.8)(14.1)
    Acquisition and integration costs (3)(0.7) (3.3) 
Interest expense(38.7)(42.0)(79.4)(84.9)
(Loss)/gain on extinguishment of debt (0.4)(0.9)(0.9)2.0 
December 2023 Argentina Economic Reform (4)(1.0) (22.0) 
Other items - Adjusted (5)(4.5)(0.8)(3.5)0.6 
Total earnings before income taxes$42.4 $50.4 $51.8 $112.7 
Depreciation and amortization
Batteries & Lights$11.3 $13.1 $24.3 $26.5 
Auto Care3.1 2.8 5.6 5.5 
Total segment depreciation and amortization$14.4 $15.9 $29.9 $32.0 
Amortization of intangible assets14.5 14.5 29.0 30.5 
         Total depreciation and amortization$28.9 $30.4 $58.9 $62.5 

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

(2) Restructuring and related costs were included in the following lines in the Consolidated (Condensed) Statement of Earnings and Comprehensive Income:
12

ENERGIZER HOLDINGS, INC.
NOTES TO CONSOLIDATED (CONDENSED) FINANCIAL STATEMENTS
(In millions - Unaudited)


For the Quarters Ended March 31,For the Six Months Ended March 31,
Restructuring and related costs2024202320242023
Cost of products sold$15.5 $5.7 $28.3 $6.0 
SG&A - Restructuring costs4.6 1.8 10.3 8.1 
SG&A - IT Enablement3.3  7.2  
Total Restructuring and related costs$23.4 $7.5 $45.8 $14.1 

(3) Acquisition and integration costs included $0.7 recorded in SG&A expense for the quarter ended March 31, 2024. Acquisition and integration costs included $2.9 recorded in Cost of products sold, $1.4 recorded in SG&A, and income of $1.0 recorded in Other items, net during the six months ended March 31, 2024. Refer to Note 3, Acquisitions, for further information.

(4) During December 2023, a new president was inaugurated in Argentina bringing significant economic reform to the country including devaluing the Argentine Peso by 50% in the month of December (December 2023 Argentina Reform). As a result of this reform and devaluation, the Company recorded $1.0 and $22.0 of currency exchange and related losses during the quarter and six months ended March 31, 2024, respectively, in Other items, net on the Consolidated (Condensed) Statement of Earnings.

(5) Other items, net on the Consolidated (Condensed) Statement of Earnings and Comprehensive Income included the impact of the December 2023 Argentina Economic Reform discussed above, as well as TSA income of $1.0 from the Belgium Acquisition recorded in the six months ended March 31, 2024.

Corporate assets shown in the following table include cash, all financial instruments, pension assets, amounts indemnified by others per the purchase agreements and tax asset balances that are managed outside of operating segments.

Total AssetsMarch 31, 2024September 30, 2023
Batteries & Lights$1,240.1 $1,362.0 
Auto Care414.6 423.5 
Total segment assets$1,654.7 $1,785.5 
Corporate400.8 470.2 
Goodwill and other intangible assets2,231.4 2,253.9 
Total assets$4,286.9 $4,509.6 

(6) Earnings per share

Basic earnings per share is based on the average number of common shares outstanding during the period. Diluted earnings per share is based on the average number of shares used for the basic earnings per share calculation, adjusted for the dilutive effect of restricted stock unit (RSU) awards, performance share awards and deferred compensation equity plans.

The following table sets forth the computation of basic and diluted earnings per share for the quarters and six months ended March 31, 2024 and 2023:
13

ENERGIZER HOLDINGS, INC.
NOTES TO CONSOLIDATED (CONDENSED) FINANCIAL STATEMENTS
(In millions - Unaudited)


(in millions, except per share data)For the Quarters Ended March 31,For the Six Months Ended March 31,
Basic net earnings per share2024202320242023
Net earnings$32.4 $40.0 $34.3 $89.0 
Weighted average common shares outstanding - Basic71.8 71.5 71.7 71.4 
Basic net earnings per common share$0.45 $0.56 $0.48 $1.25 
Diluted net earnings per share
Weighted average common shares outstanding - Basic71.8 71.5 71.7 71.4 
Dilutive effect of RSU0.3 0.4 0.4 0.3 
Dilutive effect of performance shares0.5 0.5 0.5 0.5 
Dilutive effect of stock based deferred compensation plan   0.1 
Weighted average common shares outstanding - Diluted72.6 72.4 72.6 72.3 
Diluted net earnings per common share$0.45 $0.55 $0.47 $1.23 

For the quarters ended March 31, 2024 and 2023, there were 0.5 million and 0.1 million antidilutive RSU shares, respectively, not included in the diluted net earnings per share calculation. For the six months ended March 31, 2024 and 2023, 0.5 million and 0.2 million RSU, respectively, were antidilutive and not included in the diluted net earnings per share calculation.

Performance based RSU shares of 1.3 million were excluded for the quarters and six months ended March 31, 2024 and 2023 as the performance targets for those awards have not been achieved as of the end of the applicable periods.

(7) Income Taxes    

The effective tax rate for the quarter and six months ended March 31, 2024 was 23.6% and 33.8%, respectively, as compared to 20.6% and 21.0% for the prior year comparative periods, respectively.

The current year rates are higher than prior year as the December 2023 Argentina Reform currency exchange and related losses of $1.0 and $22.0, recorded during the quarter and six months ended March 31, 2024, respectively, were not deductible for tax purposes and did not result in a statutory tax benefit.

(8) Goodwill and intangible assets

Goodwill and intangible assets deemed to have an indefinite life are not amortized, but are evaluated annually for impairment as part of our annual business planning cycle in the fourth fiscal quarter, or when indicators of a potential impairment are present.

The following table sets forth goodwill by segment as of October 1, 2023 and March 31, 2024:

Batteries & LightsAuto CareTotal
Balance at October 1, 2023$882.0 $134.2 $1,016.2 
Belgium Acquisition0.7  0.7 
Cumulative translation adjustment5.4  5.4 
Balance at March 31, 2024$888.1 $134.2 $1,022.3 

Energizer had indefinite-lived intangible assets of $763.0 at March 31, 2024 and $762.8 at September 30, 2023. The difference between the periods is driven by currency adjustments.
14

ENERGIZER HOLDINGS, INC.
NOTES TO CONSOLIDATED (CONDENSED) FINANCIAL STATEMENTS
(In millions - Unaudited)



Total intangible assets at March 31, 2024 are as follows:
Gross Carrying AmountAccumulated AmortizationNet Carrying Amount
Trademarks and trade names$142.6 $(33.4)$109.2 
Customer relationships394.5 (153.2)241.3 
Patents34.1 (19.4)14.7 
Proprietary technology172.5 (108.8)63.7 
Proprietary formulas29.2 (12.0)17.2 
    Total Amortizable intangible assets772.9 (326.8)446.1 
Trademarks and trade names - indefinite lived763.0 — 763.0 
     Total Other intangible assets, net$1,535.9 $(326.8)$1,209.1 

Total intangible assets at September 30, 2023 were as follows:
Gross Carrying AmountAccumulated AmortizationNet Carrying Amount
Trademarks and trade names$142.4 $(29.4)$113.0 
Customer relationships394.2 (139.7)254.5 
Patents33.9 (18.2)15.7 
Proprietary technology172.5 (100.0)72.5 
Proprietary formulas29.2 (10.0)19.2 
    Total Amortizable intangible assets772.2 (297.3)474.9 
Trademarks and trade names - indefinite lived762.8 — 762.8 
    Total Other intangible assets, net$1,535.0 $(297.3)$1,237.7 


(9) Debt

The detail of long-term debt was as follows:
March 31, 2024September 30, 2023
Senior Secured Term Loan Facility due 2027$841.0 $982.0 
6.500% Senior Notes due 2027300.0 300.0 
4.750% Senior Notes due 2028583.7 583.7 
4.375% Senior Notes due 2029791.3 791.3 
3.50% Senior Notes due 2029 (Euro Notes of €650.0)(1)
701.4 687.2 
Finance lease obligations(2)
49.0 32.0 
Total long-term debt, including current maturities$3,266.4 $3,376.2 
Less current portion(12.8)(12.3)
Less unamortized debt premium and debt issuance fees(27.8)(31.8)
Total long-term debt$3,225.8 $3,332.1 
(1) Changes in the USD balance of the Euro denominated 3.50% Senior Notes due in 2029 is due to movements in the currency rate year-over-year.
(2) The increase in finance lease obligations is due to the acquisition of a finance lease associated with the Belgium Acquisition.

15

ENERGIZER HOLDINGS, INC.
NOTES TO CONSOLIDATED (CONDENSED) FINANCIAL STATEMENTS
(In millions - Unaudited)


Credit Agreement - During the first and second quarter of fiscal 2024, the Company pre-paid $75.0 and $60.0, respectively, of the Senior Secured Term Loan due in 2027. During the first and second quarter of fiscal 2023, the Company pre-paid $25.0 and $100.0, respectively, of the Senior Term Loan. The Company wrote off $0.4 and $0.9 of deferred financing fees as a result of these early payments for the quarter and six months ended March 31, 2024, respectively, and $0.9 and $1.1 for the quarter and six months ended March 31, 2023, respectively.

Borrowings under the Term Loan require quarterly principal payments at a rate of 0.25% of the original principal balance, or $3.0. Borrowings under the Revolving Facility bear interest at a rate per annum equal to, at the option of the Company, Secured Overnight Finance Rate (SOFR) or the Base Rate (as defined) plus the applicable margin. The Term Loan bears interest at a rate per annum equal to SOFR plus the applicable margin. The Credit Agreement also contains customary affirmative and restrictive covenants.

The Company has an interest rate swap that fixes the variable benchmark component (SOFR) at an interest rate of 1.042% on variable rate debt of $700.0. The notional value of the swap will stay at this value through December 22, 2024 and then will decrease by $100.0 on December 22, 2024 and by $100.0 each year thereafter until its termination date on December 22, 2027. Refer to Note 11, Financial Instruments and Risk Management, for additional information on the Company's interest rate swap transactions.

As of March 31, 2024, the Company had no outstanding borrowings under the Revolving Facility and $7.6 of outstanding letters of credit. Taking into account outstanding letters of credit, $492.4 remained available under the Revolving Facility as of March 31, 2024. At March 31, 2024 and September 30, 2023, the Company's weighted average interest rate on short-term borrowings was 7.8% and 7.7%, respectively.

Senior Notes - During the first quarter of fiscal 2023, the Company retired $16.3 of the 4.750% Senior Notes due in 2028 and $8.7 of the 4.375% Senior Notes due in 2029 for a cash cost of $21.6. The Company wrote off $0.3 of deferred financing fees as a result of these transactions.

The prepayments of the Term Loan during fiscal 2024 resulted in a net Loss on extinguishment of debt for the quarter and six months ended March 31, 2024 of $0.4 and $0.9, respectively, recorded on the Consolidated (Condensed) Statement of Earnings and Comprehensive Income. The transactions associated with both the retirement of Senior Notes and prepayment of the Term Loan resulted in a net Loss on extinguishment of debt of $0.9 and a net Gain on extinguishment of debt of $2.0 for the quarter and six months ended March 31, 2023, respectively.

Notes payable - The Company had $1.0 in Notes payable at March 31, 2024 and $8.2 at September 30, 2023. The balances are comprised of other borrowings, including those from foreign affiliates. At March 31, 2024 and September 30, 2023, the Company had no outstanding borrowings on the Revolving Facility.

Debt Covenants - The agreements governing the Company's debt contain certain customary representations and warranties, affirmative, negative and financial covenants and provisions relating to events of default. If the Company fails to comply with these covenants or with other requirements of these debt agreements, the lenders may have the right to accelerate the maturity of the debt. Acceleration under one of these debt agreements would trigger cross defaults to other borrowings. As of March 31, 2024, the Company was in compliance with the provisions and covenants associated with its debt agreements.

The counterparties to long-term committed borrowings consist of a number of major financial institutions. The Company consistently monitors positions with, and credit ratings of, counterparties both internally and by using outside ratings agencies.

16

ENERGIZER HOLDINGS, INC.
NOTES TO CONSOLIDATED (CONDENSED) FINANCIAL STATEMENTS
(In millions - Unaudited)


Debt Maturities - Aggregate maturities of long-term debt as of March 31, 2024 are as follows:
Long-term debt
One year$12.0 
Two year12.0 
Three year12.0 
Four year1,105.0 
Five year1,375.0 
Thereafter701.4 
Total long-term debt payments due$3,217.4 

(10) Pension Plans

The Company has several defined benefit pension plans covering many of its employees in the U.S. and certain employees in other countries. The plans provide retirement benefits based on various factors including years of service and in certain circumstances, earnings. Most plans are now frozen to new entrants and for additional service.
The Company’s net periodic pension cost for these plans are as follows:
For the Quarters Ended March 31,
U.S.International
2024202320242023
Service cost$ $ $0.1 $0.1 
Interest cost3.6 5.1 0.9 0.9 
Expected return on plan assets(3.3)(5.3)(0.9)(0.7)
Amortization of unrecognized net losses0.4 0.5 0.3 0.1 
Net periodic cost$0.7 $0.3 $0.4 $0.4 
For the Six Months Ended March 31,
U.S.International
2024202320242023
Service cost$ $ $0.2 $0.2 
Interest cost7.2 10.2 1.7 1.7 
Expected return on plan assets(6.6)(10.5)(1.7)(1.4)
Amortization of unrecognized net losses0.9 1.1 0.5 0.2 
Net periodic cost$1.5 $0.8 $0.7 $0.7 

The service cost component of the net periodic cost above is recorded in Selling, general and administrative expense on the Consolidated (Condensed) Statement of Earnings and Comprehensive Income, while the remaining components are recorded to Other items, net.

During the quarter ended March 31, 2024, the Company completed a buy-in of an insurance contract for its UK Pension Plan. As of the date of the last pension remeasurement at September 30, 2023, the pension plan had a projected benefit obligation of $40.3 and the fair value of the plan assets were $49.0, resulting in a net asset position of $8.7 recorded on the Consolidated (Condensed) Balance Sheet. The pension plan also included an unrealized loss in Accumulated Other Comprehensive Loss of $20.4. No cash contribution was required to be made by the Company for the insurance contract. The pension plan liabilities remain with the Company until a buy-out of the pension plan is completed, which is expected to occur in fiscal year 2025 or 2026.

The Company also sponsors or participates in a number of other non-U.S. pension arrangements, including various retirement and termination benefit plans, some of which are required by local law or coordinated with government-sponsored plans, which are not significant in the aggregate and, therefore, are not included in the information presented above.
17

ENERGIZER HOLDINGS, INC.
NOTES TO CONSOLIDATED (CONDENSED) FINANCIAL STATEMENTS
(In millions - Unaudited)



(11) Financial Instruments and Risk Management

The market risk inherent in the Company's operations creates potential earnings volatility arising from changes in currency rates, interest rates and commodity prices. The Company's policy allows derivatives to be used only for identifiable exposures and, therefore, the Company does not enter into hedges for trading or speculative purposes where the sole objective is to generate profits.

Concentration of Credit Risk—The counterparties to derivative contracts consist of a number of major financial institutions and are generally institutions with which the Company maintains lines of credit. The Company does not enter into derivative contracts through brokers nor does it trade derivative contracts on any other exchange or over-the-counter markets. Risk of currency positions and mark-to-market valuation of positions are strictly monitored at all times.

The Company continually monitors positions with, and credit ratings of, counterparties both internally and by using outside rating agencies. While nonperformance by these counterparties exposes Energizer to potential credit losses, such losses are not anticipated.

In the ordinary course of business, the Company may enter into contractual arrangements (derivatives) to reduce its exposure to commodity price and foreign currency risks. The section below outlines the types of derivatives that existed at March 31, 2024 and September 30, 2023, as well as the Company's objectives and strategies for holding these derivative instruments.

Commodity Price Risk—The Company uses raw materials that are subject to price volatility. At times, the Company uses hedging instruments to reduce exposure to variability in cash flows associated with future purchases of certain materials and commodities.

Foreign Currency Risk—A significant portion of Energizer’s product cost is more closely tied to the U.S. dollar than to the local currencies in which the product is sold. As such, a weakening of currencies relative to the U.S. dollar results in margin declines unless mitigated through pricing actions, which are not always available due to the economic or competitive environment. Conversely, a strengthening of currencies relative to the U.S. dollar can improve margins. The primary currencies to which Energizer is exposed include the Euro, the British pound, the Canadian dollar and the Australian dollar. However, the Company also has significant exposures in many other currencies which, in the aggregate, may have a material impact on the Company's operations.

Additionally, Energizer’s foreign subsidiaries enter into internal and external transactions that create nonfunctional currency balance sheet positions at the foreign subsidiary level. These exposures are generally the result of intercompany purchases, intercompany loans and, to a lesser extent, external purchases, and are revalued in the foreign subsidiary’s local currency at the end of each period. Changes in the value of the non-functional currency balance sheet positions in relation to the foreign subsidiary’s local currency results in a transaction gain or loss recorded in Other items, net on the Consolidated (Condensed) Statement of Earnings and Comprehensive Income. The primary currency to which Energizer’s foreign subsidiaries are exposed is the U.S. dollar.

Interest Rate Risk—The Company has interest rate risk with respect to interest expense on variable rate debt. At March 31, 2024, the Company had variable rate debt outstanding of $841.0 under the Term Loan.

The Company has an interest rate swap that fixes the variable benchmark component (SOFR) at an interest rate of 1.042% on variable rate debt of $700.0. The notional value of the swap will stay at this value through December 22, 2024 and then will decrease by $100.0 on December 22, 2024 and by $100.0 each year thereafter until its termination date on December 22, 2027. The notional value of the swap was $700.0 at March 31, 2024.

Derivatives Designated as Cash Flow Hedging Relationships—The Company has entered into a series of forward currency contracts to hedge the cash flow uncertainty of the forecasted payment of inventory purchases due to short term currency fluctuations. Energizer’s foreign affiliates, which have the largest exposure to U.S. dollar purchases, have the Euro, the British pound, the Canadian dollar and the Australian dollar as their local currencies. These foreign currencies represent a significant portion of Energizer's foreign currency exposure. At March 31, 2024 and September 30, 2023, Energizer had an unrealized pre-tax gain of $0.6 and $3.3, respectively, on these forward currency contracts accounted for as cash flow hedges included in Accumulated other comprehensive loss on the Consolidated (Condensed) Balance Sheets. Assuming foreign exchange rates versus the U.S. dollar remain at March 31, 2024 levels, over the next 12 months $0.6 of the pre-tax gain included in
18

ENERGIZER HOLDINGS, INC.
NOTES TO CONSOLIDATED (CONDENSED) FINANCIAL STATEMENTS
(In millions - Unaudited)


Accumulated other comprehensive loss is expected to be recognized in earnings. Contract maturities for these hedges extend into fiscal year 2025. There were 64 open foreign currency contracts at March 31, 2024, with a total notional value of approximately $166.

The Company has entered into hedging contracts on future zinc purchases to reduce exposure to variability in cash flows associated with price volatility. The contracts are determined to be cash flow hedges and qualify for hedge accounting. The contract maturities for these hedges extend into fiscal 2025. There were 19 open contracts at March 31, 2024, with a total notional value of approximately $29. The Company had an unrealized pre-tax loss of $0.5 and $0.7 on these hedges at March 31, 2024 and September 30, 2023, respectively, and was included in Accumulated other comprehensive loss on the Consolidated (Condensed) Balance Sheet.

At March 31, 2024 and September 30, 2023, Energizer recorded an unrealized pre-tax gain of $62.7 and $79.8, respectively, on the Interest rate swap agreement, both of which were included in Accumulated other comprehensive loss on the Consolidated (Condensed) Balance Sheet.

Derivatives not Designated in Hedging Relationships—Energizer enters into foreign currency derivative contracts, which are not designated as cash flow hedges for accounting purposes, to hedge existing balance sheet exposures. Any gains or losses on these contracts are expected to be offset by corresponding exchange losses or gains on the underlying exposures, and as such are not subject to significant market risk. There were three open foreign currency derivative contracts which are not designated as cash flow hedges at March 31, 2024, with a total notional value of approximately $78.

The following table provides the Company's estimated fair values as of March 31, 2024 and September 30, 2023, and the amounts of gains and losses on derivative instruments classified as cash flow hedges for the six months ended March 31, 2024 and 2023, respectively:

At March 31, 2024
For the Quarter Ended March 31, 2024
For the Six Months Ended March 31, 2024
Derivatives designated as Cash Flow Hedging RelationshipsEstimated Fair Value Asset / (Liability) (1)Gain/(Loss) Recognized in OCI (2)(Loss)/Gain Reclassified From OCI into Income (3) (4)Loss Recognized in OCI (2)Gain/(Loss) Reclassified From OCI into Income (3) (4)
Foreign currency contracts$0.6 $4.0 $(0.3)$(2.1)$0.6 
Interest rate swap62.7 11.3 7.8 (1.3)15.8 
Zinc contracts(0.5)(3.3)(2.1)(5.1)(5.3)
Total$62.8 $12.0 $5.4 $(8.5)$11.1 
At September 30, 2023
For the Quarter Ended March 31, 2023
For the Six Months Ended March 31, 2023
Derivatives designated as Cash Flow Hedging RelationshipsEstimated Fair Value Asset / (Liability) (1)Loss Recognized in OCI (2)Gain/(Loss) Reclassified From OCI into Income (3) (4)(Loss)/Gain Recognized in OCI (2)Gain Reclassified From OCI into Income (3) (4)
Foreign currency contracts$3.3 $(0.2)$1.1 $(9.4)$7.6 
Interest rate swap79.8 (6.7)6.3 (6.7)11.2 
Zinc contracts(0.7)(0.6)(0.8)2.9 0.3 
Total$82.4 $(7.5)$6.6 $(13.2)$19.1 
(1) All derivative assets are presented in Other current assets or Other assets. All derivative liabilities are presented in Other current liabilities or Other liabilities.
(2) OCI is defined as other comprehensive income.
(3) Gain/(Loss) reclassified to Income was recorded as follows: Foreign currency contracts in Cost of products sold, interest rate contracts in Interest expense, and commodity contracts in Cost of products sold.
(4) Each of these hedging relationships has derivative instruments with a high correlation to the underlying exposure being hedged and has been deemed highly effective in offsetting the underlying risk.

19

ENERGIZER HOLDINGS, INC.
NOTES TO CONSOLIDATED (CONDENSED) FINANCIAL STATEMENTS
(In millions - Unaudited)


The following table provides estimated fair values as of March 31, 2024 and September 30, 2023 and the gains and losses on derivative instruments not classified as cash flow hedges for the six months ended March 31, 2024 and 2023, respectively:
At March 31, 2024
For the Quarter Ended March 31, 2024
For the Six Months Ended March 31, 2024
Estimated Fair Value Liability (1)Loss Recognized in Income (2)Gain Recognized in Income (2)
Foreign currency contracts$(0.5)$(2.7)$0.5 
 At September 30, 2023
For the Quarter Ended March 31, 2023
For the Six Months Ended March 31, 2023
Estimated Fair Value Liability (1)Gain Recognized in Income (2)Gain Recognized in Income (2)
Foreign currency contracts$(1.3)$0.1 $0.6 
(1) All derivative assets and liabilities are presented in Other current assets or Other assets and Other current liabilities or Other liabilities, respectively.
(2) Gain / (Loss) recognized in Income was recorded as foreign currency in Other items, net.


Energizer has the following recognized financial assets resulting from those transactions that meet the scope of the disclosure requirements as necessitated by applicable accounting guidance for balance sheet offsetting.
Offsetting of derivative assets
At March 31, 2024At September 30, 2023
DescriptionBalance Sheet locationGross amounts of recognized assetsGross amounts offset in the Balance SheetNet amounts of assets presented in the Balance SheetGross amounts of recognized assetsGross amounts offset in the Balance SheetNet amounts of assets presented in the Balance Sheet
Foreign Currency ContractsOther Current Assets, Other Assets$1.3 $(0.4)$0.9 $4.4 $(1.0)$3.4 
Offsetting of derivative liabilities
At March 31, 2024At September 30, 2023
DescriptionBalance Sheet locationGross amounts of recognized liabilitiesGross amounts offset in the Balance SheetNet amounts of liabilities presented in the Balance SheetGross amounts of recognized liabilitiesGross amounts offset in the Balance SheetNet amounts of liabilities presented in the Balance Sheet
Foreign Currency ContractsOther Current Liabilities, Other Liabilities$(1.2)$0.4 $