Edgewell Personal Care(EPC) - 2021 Q4 - Annual Report

Business Segments - The company operates in three segments: Wet Shave, Sun and Skin Care, and Feminine Care, with a focus on segment profit excluding certain costs[23] - The Wet Shave segment holds the number two global market share position, with primary markets in the U.S., Canada, Japan, Germany, France, and the U.K.[24] - The Sun and Skin Care segment includes leading brands like Banana Boat and Hawaiian Tropic, which hold a significant market share in the U.S. sun care category[26] - The Feminine Care segment includes well-known brands such as Playtex and Stayfree, positioning the company as one of the top two manufacturers in North America[28] Product Innovation and Growth - In 2021, the company relaunched Schick Hydro Skin Comfort™, introducing four new razors, including a Sensitive Razor and a 4-in-1 Groomer[25] - The company has expanded its men's grooming portfolio through acquisitions, including Bulldog, Jack Black, and Cremo, aiming for global growth in the luxury men's skincare market[26] - The company is committed to product innovation and geographic expansion to drive future growth across all segments[26] - The company has seen significant growth in its international sun care business, more than doubling since acquiring Banana Boat and Hawaiian Tropic in 2008[31] Retail Partnerships - Walmart accounted for approximately 21% of the company's net sales in fiscal 2021, highlighting the importance of key retail partnerships[34] Intellectual Property - The company owns approximately 460 unexpired U.S. patents and 1,313 foreign patents, indicating a strong focus on intellectual property protection[39] Employee Engagement and Workforce - As of September 30, 2021, Edgewell had approximately 6,900 employees, with 2,100 based in the U.S.[43] - Approximately 80% of the U.S. manufacturing team utilized paid pandemic leave due to COVID-19 related issues[44] - The overall employee engagement positivity score was 71% based on a survey conducted in Summer 2021, with 3,800 employees participating[47] - The Spark Growth program has equipped nearly 900 People Managers to better develop employees and maximize performance[47] Financial Risk Management - Edgewell's cash flow hedging program related to foreign currency risk included 64 open foreign currency contracts with a notional value of approximately $129.2 million as of September 30, 2021[189] - The company reported an unrealized pre-tax gain of $3.3 million and an unrealized pre-tax loss of $3.0 million on forward currency contracts accounted for as cash flow hedges at September 30, 2021[189] - There were five open foreign currency derivative contracts not designated as cash flow hedges at September 30, 2021, with a notional value of approximately $42.0 million[190] Debt and Interest Rates - As of September 30, 2021, the outstanding debt included $26.5 million related to international, variable-rate note payable[193] - A one percent increase in applicable interest rates would lead to an annual interest expense increase of approximately $0.3 million[193] - The remaining outstanding debt as of September 30, 2021, consists of fixed-rate debt[193] - Changes in market interest rates affect the fair value of fixed-rate debt but do not impact earnings or cash flows[193] Corporate Responsibility and Diversity - Edgewell's Sustainable Care 2030 strategy includes commitments across brands, operations, and supply chain, focusing on employee safety and well-being[46] - The company has appointed a Director of Diversity, Equity, and Inclusion (DEI) to advance its global DEI strategy[46] - Edgewell's policies against workplace discrimination are guided by its executive leadership team, ensuring compliance with all relevant laws[46]