20190630 FORM 464B3 - Q3FY19

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Prospectus Supplement No. 1

to Prospectus dated May 16, 2019

 

Filed pursuant to Rule 424(b)(3)

File No. 333-219844

File No. 333-209020

 



Picture 2

SPECTRUM BRANDS, INC.

6.625% Senior Notes due 2022 and Related Guarantees

6.125% Senior Notes due 2024 and Related Guarantees

5.750% Senior Notes due 2025 and Related Guarantees

 

 

This prospectus supplement relates to the prospectus dated May 16, 2019 (for use by our affiliate Jefferies LLC or any of its affiliates (collectively referred to as “Jefferies”) in connection with offers and sales by Jefferies of our 6.625% Senior Notes due 2022 and Related Guarantees, 6.125% Senior Notes due 2024 and Related Guarantees and 5.750% Senior Notes due 2025 and Related Guarantees (the “Notes”) in market-making transactions effected from time to time).

This prospectus supplement is being filed to update, amend and supplement the information previously included in the prospectus with the information contained in SB/RH Holdings, LLC’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 7, 2019 (the “10-Q”). Accordingly, we have attached the 10-Q to this prospectus supplement. You should read this prospectus supplement together with the prospectus, which is to be delivered with this prospectus supplement.

 

 

An investment in the Notes involves risks. Please refer to the section in the prospectus entitled “Risk Factors” commencing on page 8 of the prospectus.

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if the prospectus or this prospectus supplement is truthful or complete. Any representation to the contrary is a criminal offense.

 

 

The date of this prospectus supplement is August 13, 2019.





 

 


 

Table of Contents

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q



QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2019



OR



TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to           





\

 

 

 

 



 

Picture 1

 

 

Commission File No.

 

Name of Registrant, State of Incorporation,

Address of Principal Offices, and Telephone No.

 

IRS Employer Identification No.

1-4219

 

Spectrum Brands Holdings, Inc.

(a Delaware corporation)

3001 Deming Way

Middleton,  WI 53562

(608)  275-3340

www.spectrumbrands.com

 

 

74-1339132

333-192634-03

 

SB/RH Holdings, LLC

(a Delaware limited liability company)

3001 Deming Way

Middleton, WI 53562

(608) 275-3340

 

27-2812840



Indicate by check mark whether the registrants (1) have 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.



 

 

 

 

 

 



Spectrum Brands Holdings, Inc.

Yes

No

 



SB/RH Holdings, LLC

Yes

No

 



Indicate by check mark whether the registrants have submitted electronically every Interactive Data File required to be submitted and posted 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 and post such files). 



 

 

 

 

 

 



Spectrum Brands Holdings, Inc.

Yes

No

 



SB/RH Holdings, LLC

Yes

No

 



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. (Check one):



 

 

 

 

 

 

 

 

 

Registrant

 

Large Accelerated Filer

 

Accelerated Filer

 

Non-accelerated Filer

 

Smaller Reporting Company

Spectrum Brands Holdings, Inc.

 

X

 

 

 

 

 

 

SB/RH Holdings, LLC

 

 

 

 

 

X

 

 



Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

 

 

 

 

 

 

 



Spectrum Brands Holdings, Inc.

Yes

No

 



SB/RH Holdings, LLC

Yes

No

 



Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§232.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter



 

 

 

 

 

 



Spectrum Brands Holdings, Inc.

Yes

No

 



SB/RH Holdings, LLC

Yes

No

 



If an emerging growth company, indicate by checkmark 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.



 

 

 

 

 

 



Spectrum Brands Holdings, Inc.

 

 

 

 



SB/RH Holdings, LLC

 

 

 

 



Securities registered pursuant to Section 12(b) of the Exchange Act:

Registrant

 

Title of Each Class

 

Trading Symbol

 

Name of Exchange On Which Registered

Spectrum Brands Holdings, Inc.

 

Common Stock, $0.01 par value

 

SPB

 

New York Stock Exchange



As of August 5, 2019, there were 48,765,552 shares outstanding of Spectrum Brands Holdings, Inc.’s common stock, par value $0.01 per share.



SB/RH Holdings, LLC meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing this report with a reduced disclosure format as permitted by general instruction H(2).

 

 


 

Table of Contents

 

Forward-Looking Statements



We have made or implied certain forward-looking statements in this report. All statements, other than statements of historical facts included in this report, including the statements under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding our business strategy, future operations, financial condition, estimated revenues, projected costs, projected synergies, prospects, plans and objectives of management, as well as information concerning expected actions of third parties, are forward-looking statements. When used in this report, the words anticipate, pro forma, seeks, intend, plan, estimate,  believe,  expect,  project,  could,  will,  should,  may and similar expressions are also intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words.



Since these forward-looking statements are based upon our current expectations of future events and projections and are subject to a number of risks and uncertainties, many of which are beyond our control and some of which may change rapidly, actual results or outcomes may differ materially from those expressed or implied herein, and you should not place undue reliance on these statements. Important factors that could cause our actual results to differ materially from those expressed or implied herein include, without limitation:



·

the impact of our indebtedness on our business, financial condition and results of operations;

·

the impact of restrictions in our debt instruments on our ability to operate our business, finance our capital needs or pursue or expand business strategies;

·

any failure to comply with financial covenants and other provisions and restrictions of our debt instruments;

·

the impact of actions taken by significant stockholders;

·

the impact of fluctuations in commodity prices, costs or availability of raw materials or terms and conditions available from suppliers, including suppliers’ willingness to advance credit;

·

interest rate and exchange rate fluctuations;

·

the loss of, significant reduction in, or dependence upon, sales to any significant retail customer(s);

·

competitive promotional activity or spending by competitors, or price reductions by competitors;

·

the introduction of new product features or technological developments by competitors and/or the development of new competitors or competitive brands;

·

the effects of general economic conditions, including inflation, recession or fears of a recession, depression or fears of a depression, labor costs and stock market volatility or changes in trade, monetary or fiscal policies in the countries where we do business;

·

changes in consumer spending preferences and demand for our products;

·

our ability to develop and successfully introduce new products, protect our intellectual property and avoid infringing the intellectual property of third parties;

·

our ability to successfully implement, achieve and sustain manufacturing and distribution cost efficiencies and improvements, and fully realize anticipated cost savings;

·

the seasonal nature of sales of certain of our products;

·

the effects of climate change and unusual weather activity;

·

the cost and effect of unanticipated legal, tax or regulatory proceedings or new laws or regulations (including environmental, public health and consumer protection regulations);

·

public perception regarding the safety of products, that we manufacture or sell, including the potential for environmental liabilities, product liability claims, litigation and other claims related to products manufactured by us and third parties;

·

the impact of pending or threatened litigation;

·

the impact of cybersecurity breaches or our actual or perceived failure to protect company and personal data;

·

changes in accounting policies applicable to our business;

·

our ability to utilize our net operating loss carry-forwards to offset tax liabilities from future taxable income;

·

government regulations;

·

the impact of expenses resulting from the implementation of new business strategies, divestitures or current and proposed restructuring activities;

·

our inability to successfully integrate and operate new acquisitions at the level of financial performance anticipated;

·

the unanticipated loss of key members of senior management;

·

the effects of political or economic conditions, terrorist attacks, acts of war or other unrest in international markets; and

·

the transition to a new chief executive officer and such officer’s ability to determine and implement changes at the Company to improve the Company’s business and financial performance.



Some of the above-mentioned factors are described in further detail in the sections entitled “Risk Factors” in our annual and quarterly reports (including this report), as applicable. You should assume the information appearing in this report is accurate only as of the end of the period covered by this report, or as otherwise specified, as our business, financial condition, results of operations and prospects may have changed since that date. Except as required by applicable law, including the securities laws of the United States (“U.S.”) and the rules and regulations of the United States Securities and Exchange Commission (“SEC”), we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, to reflect actual results or changes in factors or assumptions affecting such forward-looking statements.



 

 

 


 

Table of Contents

 

SPECTRUM BRANDS HOLDINGS, INC.

SB/RH HOLDINGS, LLC

TABLE OF CONTENTS



This report is a combined report of Spectrum Brands Holdings, Inc. and SB/RH Holdings, LLC. The combined notes to the condensed consolidated financial statements include notes representing Spectrum Brands Holdings, Inc. and SB/RH Holdings, LLC and certain notes related specifically to SB/RH Holdings, LLC.







 

 

PART I

FINANCIAL INFORMATION

Page

Item 1.

Financial Statements

Spectrum Brands Holdings, Inc. Condensed Consolidated Financial Statements (Unaudited)



Condensed Consolidated Statements of Financial Position as of June 30, 2019 and September 30, 2018



Condensed Consolidated Statements of Income for the three and nine  month periods ended June 30, 2019 and 2018



Condensed Consolidated Statements of Comprehensive Income for the three and nine month periods ended June 30, 2019 and 2018



Condensed Consolidated Statement of Shareholders’ Equity for the nine month periods ended June 30, 2019 and 2018



Condensed Consolidated Statements of Cash Flows for the nine month periods ended June 30, 2019 and 2018

SB/RH Holdings, LLC Condensed Consolidated Financial Statements (Unaudited)



Condensed Consolidated Statements of Financial Position as of June 30, 2019 and September 30, 2018



Condensed Consolidated Statements of Income for the three and nine month periods ended June 30, 2019 and July 1, 2018



Condensed Consolidated Statements of Comprehensive Income for the three and nine month periods ended June 30, 2019 and July 1, 2018

10 



Condensed Consolidated Statement of Shareholder’s Equity for the nine month periods ended June 30, 2019 and July 1, 2018

11 



Condensed Consolidated Statements of Cash Flows for the nine month periods ended June 30, 2019 and July 1, 2018

12 

Spectrum Brands Holdings, Inc. and SB/RH Holdings, LLC Combined (Unaudited)



Combined Notes to Condensed Consolidated Financial Statements

13 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

43 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

56 

Item 4.

Controls and Procedures

57 

PART II

OTHER INFORMATION

 

Item 1.

Legal Proceedings

58 

Item 1A.

Risk Factors

58 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

60 

Item 5.

Other Information

60 

Item 6.

Exhibits

60 

Signatures

 

61 



1

 


 

Table of Contents

 

PART I. FINANCIAL INFORMATION



Item 1. Financial Statements

SPECTRUM BRANDS HOLDINGS, INC.

Condensed Consolidated Statements of Financial Position

As of June 30, 2019, and September 30, 2018 

(unaudited)





 

 

 

 

 

 



 

 

 

 

 

 

(in millions)

 

June 30, 2019

 

September 30, 2018

Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

161.4 

 

$

552.5 

Trade receivables, net

 

 

568.5 

 

 

317.1 

Other receivables

 

 

62.9 

 

 

51.7 

Inventories

 

 

718.6 

 

 

583.6 

Prepaid expenses and other current assets

 

 

60.4 

 

 

63.2 

Current assets of business held for sale

 

 

 

 

2,402.6 

Total current assets

 

 

1,571.8 

 

 

3,970.7 

Property, plant and equipment, net

 

 

464.9 

 

 

500.0 

Deferred charges and other

 

 

28.5 

 

 

231.8 

Investments

 

 

204.7 

 

 

Goodwill

 

 

1,451.0 

 

 

1,454.7 

Intangible assets, net

 

 

1,567.5 

 

 

1,641.8 

Total assets

 

$

5,288.4 

 

$

7,799.0 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

Current portion of long-term debt

 

$

13.8 

 

$

26.9 

Accounts payable

 

 

452.7 

 

 

584.7 

Accrued wages and salaries

 

 

65.4 

 

 

55.1 

Accrued interest

 

 

34.7 

 

 

65.0 

Other current liabilities

 

 

452.1 

 

 

159.4 

Current liabilities of business held for sale

 

 

 

 

537.6 

Total current liabilities

 

 

1,018.7 

 

 

1,428.7 

Long-term debt, net of current portion

 

 

2,275.2 

 

 

4,624.3 

Deferred income taxes

 

 

35.0 

 

 

35.0 

Other long-term liabilities

 

 

75.5 

 

 

121.4 

Total liabilities

 

 

3,404.4 

 

 

6,209.4 

Commitments and contingencies (Note 18)

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

 

 

Common stock

 

 

0.5 

 

 

0.5 

Additional paid-in capital

 

 

2,025.3 

 

 

1,996.7 

Accumulated earnings (deficit)

 

 

340.5 

 

 

(180.1)

Accumulated other comprehensive loss, net of tax

 

 

(228.7)

 

 

(235.8)

Treasury stock

 

 

(263.0)

 

 

Total shareholders' equity

 

 

1,874.6 

 

 

1,581.3 

Noncontrolling interest

 

 

9.4 

 

 

8.3 

Total equity

 

 

1,884.0 

 

 

1,589.6 

Total liabilities and equity

 

$

5,288.4 

 

$

7,799.0 

See accompanying notes to the condensed consolidated financial statements

2

 


 

Table of Contents

 

SPECTRUM BRANDS HOLDINGS, INC.

Condensed Consolidated Statements of Income

For the three and nine month periods ended June 30, 2019 and 2018

(unaudited)





 

 

 

 

 

 

 

 

 

 

 

 



 

Three Month Periods Ended

 

Nine Month Periods Ended

(in millions, except per share)

 

June 30, 2019

 

June 30, 2018

 

June 30, 2019

 

June 30, 2018

Net sales

 

$

1,022.2 

 

$

1,029.4 

 

$

2,809.2 

 

$

2,834.3 

Cost of goods sold

 

 

660.7 

 

 

665.2 

 

 

1,835.3 

 

 

1,843.4 

Restructuring and related charges

 

 

0.5 

 

 

1.5 

 

 

1.5 

 

 

3.5 

Gross profit

 

 

361.0 

 

 

362.7 

 

 

972.4 

 

 

987.4 

Selling

 

 

152.1 

 

 

147.1 

 

 

459.1 

 

 

453.3 

General and administrative

 

 

80.6 

 

 

76.1 

 

 

263.6 

 

 

238.4 

Research and development

 

 

10.5 

 

 

10.8 

 

 

32.7 

 

 

33.8 

Restructuring and related charges

 

 

20.2 

 

 

16.4 

 

 

40.7 

 

 

51.9 

Transaction related charges

 

 

4.8 

 

 

5.5 

 

 

16.4 

 

 

20.4 

Total operating expenses

 

 

268.2 

 

 

255.9 

 

 

812.5 

 

 

797.8 

Operating income

 

 

92.8 

 

 

106.8 

 

 

159.9 

 

 

189.6 

Interest expense

 

 

33.9 

 

 

63.3 

 

 

185.1 

 

 

206.4 

Other non-operating expense (income), net

 

 

39.4 

 

 

(1.2)

 

 

64.2 

 

 

(2.0)

Income (loss) from continuing operations before income taxes

 

 

19.5 

 

 

44.7 

 

 

(89.4)

 

 

(14.8)

Income tax expense (benefit)

 

 

44.2 

 

 

(354.2)

 

 

18.2 

 

 

(476.4)

Net (loss) income from continuing operations

 

 

(24.7)

 

 

398.9 

 

 

(107.6)

 

 

461.6 

(Loss) income from discontinued operations, net of tax

 

 

(1.2)

 

 

33.8 

 

 

699.1 

 

 

526.5 

Net (loss) income

 

 

(25.9)

 

 

432.7 

 

 

591.5 

 

 

988.1 

Net income attributable to non-controlling interest

 

 

 

 

27.1 

 

 

1.2 

 

 

104.1 

Net (loss) income attributable to controlling interest

 

$

(25.9)

 

$

405.6 

 

$

590.3 

 

$

884.0 

Amounts attributable to controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income from continuing operations attributable to controlling interest

 

$

(24.7)

 

$

382.9 

 

$

(108.8)

 

$

390.3 

Net (loss) income from discontinued operations attributable to controlling interest

 

 

(1.2)

 

 

22.7 

 

 

699.1 

 

 

493.7 

Net (loss) income attributable to controlling interest

 

$

(25.9)

 

$

405.6 

 

$

590.3 

 

$

884.0 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share from continuing operations

 

$

(0.51)

 

$

11.69 

 

$

(2.12)

 

$

12.00 

Basic earnings per share from discontinued operations

 

 

(0.02)

 

 

0.70 

 

 

13.62 

 

 

15.17 

Basic earnings per share

 

$

(0.53)

 

$

12.39 

 

$

11.50 

 

$

27.17 

Diluted earnings per share from continuing operations

 

$

(0.51)

 

$

11.68 

 

$

(2.12)

 

$

11.94 

Diluted earnings per share from discontinued operations

 

 

(0.02)

 

 

0.69 

 

 

13.62 

 

 

15.10 

Diluted earnings per share

 

$

(0.53)

 

$

12.37 

 

$

11.50 

 

$

27.04 

Dividend per share

 

$

0.42 

 

$

 

$

1.26 

 

$

Weighted Average Shares Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

48.8 

 

 

32.7 

 

 

51.3 

 

 

32.5 

Diluted

 

 

48.8 

 

 

32.8 

 

 

51.3 

 

 

32.7 



See accompanying notes to the condensed consolidated financial statements

3

 


 

Table of Contents

 



SPECTRUM BRANDS HOLDINGS, INC

Condensed Consolidated Statements of Comprehensive Income

For the three and nine month periods ended June 30, 2019 and 2018

(unaudited)





 

 

 

 

 

 

 

 

 

 

 

 



 

Three Month Periods Ended

 

Nine Month Periods Ended

(in millions)

 

June 30, 2019

 

June 30, 2018

 

June 30, 2019

 

June 30, 2018

Net (loss) income

 

$

(25.9)

 

$

432.7 

 

$

591.5 

 

$

988.1 

Foreign currency translation loss

 

 

(0.4)

 

 

(61.5)

 

 

(18.6)

 

 

(43.2)

   Deferred tax effect

 

 

0.1 

 

 

2.7 

 

 

(4.8)

 

 

6.6 

   Deferred tax valuation allowance

 

 

 

 

(0.3)

 

 

 

 

 

(0.3)

   Net unrealized loss on foreign currency translation

 

 

(0.3)

 

 

(59.1)

 

 

(23.4)

 

 

(36.9)

Unrealized (loss) gain on derivative instruments

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized (loss) gain on hedging activity before reclassification

 

 

(6.6)

 

 

40.6 

 

 

16.9 

 

 

21.4 

Net reclassification for (gain) loss to income from continuing operations

 

 

(2.5)

 

 

1.8 

 

 

(8.2)

 

 

4.0 

Net reclassification for (gain) loss to income from discontinued operations

 

 

 

 

(0.5)

 

 

0.5 

 

 

3.0 

   Unrealized (loss) gain on hedging instruments after reclassification

 

 

(9.1)

 

 

41.9 

 

 

9.2 

 

 

28.4 

   Deferred tax effect

 

 

2.4 

 

 

(11.5)

 

 

(2.6)

 

 

(7.8)

   Net unrealized (loss) gain on hedging derivative instruments

 

 

(6.7)

 

 

30.4 

 

 

6.6 

 

 

20.6 

Defined benefit pension gain

 

 

 

 

 

 

 

 

 

 

 

 

Defined benefit pension gain before reclassification

 

 

0.1 

 

 

2.8 

 

 

0.9 

 

 

0.6 

Net reclassification for loss to income from continuing operations

 

 

0.5 

 

 

0.6 

 

 

1.5 

 

 

1.9 

Net reclassification for loss to income from discontinued operations

 

 

 

 

0.2 

 

 

0.2 

 

 

0.5 

   Defined benefit pension gain after reclassification

 

 

0.6 

 

 

3.6 

 

 

2.6 

 

 

3.0 

   Deferred tax effect

 

 

(0.1)

 

 

(0.7)

 

 

(0.7)

 

 

(0.5)

   Net defined benefit pension gain

 

 

0.5 

 

 

2.9 

 

 

1.9 

 

 

2.5 

Unrealized investment gain

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized investment gain before reclassification

 

 

 

 

 

 

 

 

26.0 

Net reclassification for gain to income from discontinued operations

 

 

 

 

 

 

 

 

(6.3)

   Unrealized gain on investments after reclassification

 

 

 

 

 

 

 

 

19.7 

Adjustments to intangible assets

 

 

 

 

 

 

 

 

(0.9)

Deferred tax effect

 

 

 

 

 

 

 

 

(6.7)

Net unrealized gain on investments

 

 

 

 

 

 

 

 

12.1 

Deconsolidation of discontinued operations

 

 

 

 

 

 

21.9 

 

 

(445.9)

Net change to derive comprehensive (loss) income for the periods

 

 

(6.5)

 

 

(25.8)

 

 

7.0 

 

 

(447.6)

Comprehensive (loss) income

 

 

(32.4)

 

 

406.9 

 

 

598.5 

 

 

540.5 

Comprehensive loss attributable to non-controlling interest

 

 

(0.1)

 

 

(10.1)

 

 

(0.1)

 

 

(2.5)

Comprehensive (loss) income attributable to controlling interest

 

$

(32.3)

 

$

417.0 

 

$

598.6 

 

$

543.0 



See accompanying notes to the condensed consolidated financial statements

4

 


 

Table of Contents

 







SPECTRUM BRANDS HOLDINGS, INC

Condensed Consolidated Statements of Shareholder’s Equity

For the nine month period ended June 30, 2019

(unaudited)











 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

Additional

 

Accumulated

 

Other

 

 

 

Total

 

Non-

 

 

Nine Month Period Ended June 30, 2019

 

Common Stock

 

Paid-in

 

Earnings

 

Comprehensive

 

Treasury

 

Shareholders'

 

controlling

 

Total

(in millions)

 

Shares

 

Amount

 

Capital

 

(Deficit)

 

(Loss) Income

 

Stock

 

Equity

 

Interest

 

Equity

Balances as of September 30, 2018

 

53.4 

 

$

0.5 

 

$

1,996.7 

 

$

(180.1)

 

$

(235.8)

 

$

 

$

1,581.3 

 

$

8.3 

 

$

1,589.6 

Net loss from continuing operations

 

 

 

 

 

 

 

(29.2)

 

 

 

 

 

 

(29.2)

 

 

0.2 

 

 

(29.0)

Loss from discontinued operations, net of tax

 

 

 

 

 

 

 

(83.2)

 

 

 

 

 

 

(83.2)

 

 

 

 

(83.2)

Other comprehensive loss, net of tax

 

 

 

 

 

 

 

 

 

(11.0)

 

 

 

 

(11.0)

 

 

 

 

(11.0)

Treasury stock repurchases

 

(0.3)

 

 

 

 

 

 

 

 

 

 

(18.5)

 

 

(18.5)

 

 

 

 

(18.5)

Restricted stock issued and related tax withholdings

 

0.3 

 

 

 

 

7.5 

 

 

(0.2)

 

 

 

 

3.9 

 

 

11.2 

 

 

 

 

11.2 

Share based compensation

 

 

 

 

 

3.2 

 

 

 

 

 

 

 

 

3.2 

 

 

 

 

3.2 

Dividends declared

 

 

 

 

 

 

 

(22.5)

 

 

 

 

 

 

(22.5)

 

 

 

 

(22.5)

Cumulative adjustment for adoption of new accounting standards (Note 2)

 

 

 

 

 

 

 

(3.2)

 

 

 

 

 

 

(3.2)

 

 

 

 

(3.2)

Balances as of December 30, 2018

 

53.4 

 

 

0.5 

 

 

2,007.4 

 

 

(318.4)

 

 

(246.8)

 

 

(14.6)

 

 

1,428.1 

 

 

8.5 

 

 

1,436.6 

Net loss from continuing operations

 

 

 

 

 

 

 

(55.0)

 

 

 

 

 

 

(55.0)

 

 

1.0 

 

 

(54.0)

Income from discontinued operations, net of tax

 

 

 

 

 

 

 

783.6 

 

 

 

 

 

 

783.6 

 

 

 

 

783.6 

Sale and deconsolidation of discontinued operations

 

 

 

 

 

 

 

 

 

21.9 

 

 

 

 

21.9 

 

 

 

 

21.9 

Other comprehensive income, net of tax

 

 

 

 

 

 

 

 

 

2.6 

 

 

 

 

2.6 

 

 

 

 

2.6 

Treasury stock repurchases

 

(4.6)

 

 

 

 

 

 

 

 

 

 

(250.0)

 

 

(250.0)

 

 

 

 

(250.0)

Restricted stock issued and related tax withholdings

 

 

 

 

 

(0.2)

 

 

 

 

 

 

0.4 

 

 

0.2 

 

 

 

 

0.2 

Share based compensation

 

 

 

 

 

10.3 

 

 

 

 

 

 

 

 

10.3 

 

 

 

 

10.3 

Dividends declared

 

 

 

 

 

 

 

(22.6)

 

 

 

 

 

 

(22.6)

 

 

 

 

(22.6)

Balances as of March 31, 2019

 

48.8 

 

 

0.5 

 

 

2,017.5 

 

 

387.6 

 

 

(222.3)

 

 

(264.2)

 

 

1,919.1 

 

 

9.5 

 

 

1,928.6 

Net loss from continuing operations

 

 

 

 

 

 

 

(24.7)

 

 

 

 

 

 

(24.7)

 

 

 

 

(24.7)

Loss from discontinued operations, net of tax

 

 

 

 

 

 

 

(1.2)

 

 

 

 

 

 

(1.2)

 

 

 

 

(1.2)

Other comprehensive loss, net of tax

 

 

 

 

 

 

 

 

 

(6.4)

 

 

 

 

(6.4)

 

 

(0.1)

 

 

(6.5)

Restricted stock issued and related tax withholdings

 

 

 

 

 

(1.9)

 

 

 

 

 

 

1.2 

 

 

(0.7)

 

 

 

 

(0.7)

Share based compensation

 

 

 

 

 

9.7 

 

 

 

 

 

 

 

 

9.7 

 

 

 

 

9.7 

Dividends declared

 

 

 

 

 

 

 

(21.2)

 

 

 

 

 

 

(21.2)

 

 

 

 

(21.2)

Balances as of June 30, 2019

 

48.8 

 

$

0.5 

 

$

2,025.3 

 

$

340.5 

 

$

(228.7)

 

$

(263.0)

 

$

1,874.6 

 

$

9.4 

 

$

1,884.0 



See accompanying notes to the condensed consolidated financial statements



5

 


 

Table of Contents

 

SPECTRUM BRANDS HOLDINGS, INC

Condensed Consolidated Statements of Shareholder’s Equity

For the nine month period ended June 30, 2018

(unaudited)





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

Additional

 

 

 

Other

 

 

 

Total

 

Non-

 

 

Nine Month Period Ended June 30, 2018

 

Common Stock

 

Paid-in

 

Accumulated

 

Comprehensive

 

Treasury

 

Shareholders'

 

controlling

 

Total

(in millions)

 

Shares

 

Amount

 

Capital

 

Deficit

 

(Loss) Income

 

Stock

 

Equity

 

Interest

 

Equity

Balances as of September 30, 2017

 

200.6 

 

$

2.0 

 

$

1,372.9 

 

$

(925.9)

 

$

309.0 

 

$

 

$

758.0 

 

$

1,188.9 

 

$

1,946.9 

Net income from continuing operations

 

 

 

 

 

 

 

40.0 

 

 

 

 

 

 

40.0 

 

 

57.2 

 

 

97.2 

Income from discontinued operations, net of tax

 

 

 

 

 

 

 

467.4 

 

 

 

 

 

 

467.4 

 

 

14.2 

 

 

481.6 

Other comprehensive income, net of tax

 

 

 

 

 

 

 

 

 

9.5 

 

 

 

 

9.5 

 

 

2.5 

 

 

12.0 

Sale and deconsolidation of HRG - Insurance Operations

 

 

 

 

 

 

 

 

 

(445.9)

 

 

 

 

(445.9)

 

 

(446.4)

 

 

(892.3)

Purchase of subsidiary stock

 

 

 

 

 

(10.3)

 

 

 

 

0.6 

 

 

 

 

(9.7)

 

 

1.7 

 

 

(8.0)

Excess of stock options and warrants

 

0.1 

 

 

 

 

1.4 

 

 

 

 

 

 

 

 

1.4 

 

 

 

 

1.4 

Restricted stock issued and related tax withholdings

 

 

 

 

 

(3.6)

 

 

 

 

 

 

 

 

(3.6)

 

 

(2.2)

 

 

(5.8)

Share based compensation

 

 

 

 

 

3.3 

 

 

 

 

 

 

 

 

3.3 

 

 

2.0 

 

 

5.3 

Dividend paid by subsidiary to noncontrolling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10.7)

 

 

(10.7)

Balances as of December 31, 2017

 

200.7 

 

 

2.0 

 

 

1,363.7 

 

 

(418.5)

 

 

(126.8)

 

 

 

 

820.4 

 

 

807.2 

 

 

1,627.6 

Net loss from continuing operations

 

 

 

 

 

 

 

(32.6)

 

 

 

 

 

 

(32.6)

 

 

(2.1)

 

 

(34.7)

Income from discontinued operations, net of tax

 

 

 

 

 

 

 

3.7 

 

 

 

 

 

 

3.7 

 

 

7.6 

 

 

11.3 

Other comprehensive income, net of tax

 

 

 

 

 

 

 

 

 

7.0 

 

 

 

 

7.0 

 

 

5.1 

 

 

12.1 

Purchase of subsidiary stock

 

 

 

 

 

(96.3)

 

 

 

 

(5.5)

 

 

 

 

(101.8)

 

 

(148.5)

 

 

(250.3)

Excess of stock options and warrants

 

1.5 

 

 

0.1 

 

 

8.6 

 

 

 

 

 

 

 

 

8.7 

 

 

 

 

8.7 

Restricted stock issued and related tax withholdings

 

 

 

 

 

(0.7)

 

 

 

 

 

 

 

 

(0.7)

 

 

 

 

(0.7)

Share based compensation

 

 

 

 

 

(4.9)

 

 

 

 

 

 

 

 

(4.9)

 

 

(3.1)

 

 

(8.0)

Dividend paid by subsidiary to noncontrolling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9.1)

 

 

(9.1)

Balances as of March 31, 2018

 

202.2 

 

 

2.1 

 

 

1,270.4 

 

 

(447.4)

 

 

(125.3)

 

 

 

 

699.8 

 

 

657.1 

 

 

1,356.9 

Net income from continuing operations

 

 

 

 

 

 

 

382.9 

 

 

 

 

 

 

382.9 

 

 

16.0 

 

 

398.9 

Income from discontinued operations, net of tax

 

 

 

 

 

 

 

22.7 

 

 

 

 

 

 

22.7 

 

 

11.1 

 

 

33.8 

Other comprehensive loss, net of tax

 

 

 

 

 

 

 

 

 

(15.7)

 

 

 

 

(15.7)

 

 

(10.1)

 

 

(25.8)

Purchase of subsidiary stock

 

 

 

 

 

(10.9)

 

 

 

 

(0.8)

 

 

 

 

(11.7)

 

 

(18.3)

 

 

(30.0)

Excess of stock options and warrants

 

1.0 

 

 

 

 

10.6 

 

 

 

 

 

 

 

 

10.6