ENERGIZER HOLDINGS, INC.ENR
ENERGIZER HOLDINGS, INC. Goodwill & Intangibles Disclosure
Goodwill and intangible assets
The following table sets forth goodwill by segment and represents the change in the carrying amount of goodwill at September 30, 2025 and 2024:
Batteries & Lights | Auto Care | Total | ||||||||||||||||||
| Balance at September 30, 2023 | $ | 882.0 | $ | 134.2 | $ | 1,016.2 | ||||||||||||||
| Belgium Acquisition | 0.7 | — | 0.7 | |||||||||||||||||
| Centralsul Acquisition | — | 14.6 | 14.6 | |||||||||||||||||
| Cumulative translation adjustment | 15.2 | (0.7) | 14.5 | |||||||||||||||||
| Balance at September 30, 2024 | $ | 897.9 | $ | 148.1 | $ | 1,046.0 | ||||||||||||||
| APS NV Acquisition | 3.9 | — | 3.9 | |||||||||||||||||
| Centralsul Acquisition | — | 0.1 | 0.1 | |||||||||||||||||
| Cumulative translation adjustment | 0.9 | 0.3 | 1.2 | |||||||||||||||||
| Balance at September 30, 2025 | $ | 902.7 | $ | 148.5 | $ | 1,051.2 | ||||||||||||||
Goodwill Annual Impairment Analysis
Goodwill and intangible assets deemed to have an indefinite life are not amortized, but are reviewed annually for impairment of value or when indicators of a potential impairment are present. As part of our business planning cycle, the Company performs the annual goodwill impairment testing for its reporting units in the fourth quarter each fiscal year. When performing a quantitative analysis, the Company estimates the fair value of each reporting unit under the income approach utilizing a discounted cash flow model which incorporates significant estimates and assumptions, including future cash flows driven by revenue and gross margin projections and discount rates reflecting the risk inherent in future cash flows. The Company uses the three-year strategic plan, the annual budget plan for the following fiscal year, and long-term category projections to determine forecasted cash flows and operating data for the discounted cash flow model. Specifically, revenue growth assumptions are based on historical trends and management’s expectations for future growth by category. Gross margin rate assumptions are based on historical trends and management's cost cutting strategies, as applicable. The discount rates are based on a weighted-average cost of capital utilizing industry market data of similar companies.
During fiscal 2025 and 2024, the Company completed a qualitative analysis over all goodwill reporting units. No impairments were identified.
During fiscal 2023, the Company completed a quantitative analysis on the Auto Care North America reporting unit and a qualitative analysis over the Batteries & Lights reporting units. No impairments were identified and the Auto Care North America reporting unit's fair value exceed its carrying value by more than 20%. There was no goodwill in the Auto Care International reporting unit.
Indefinite-lived Intangible Asset Annual Impairment Analysis
During the fourth quarter of each fiscal year, or more frequently if facts and circumstances indicate impairment, the Company completes impairment testing on indefinite-lived intangible assets other than goodwill, which are trademarks/brand names used in the various battery, auto care and lighting product categories.
For fiscal 2025, a quantitative assessment was performed over the Rayovac trade names due to the prior year impairment, and a qualitative assessment was performed over the Energizer, Eveready and Armor All trade names. No impairments were identified.
For Rayovac, the fair value of the trade name exceeded its carrying value of $337.0 by approximately 17%. The quantitative estimate of fair value for the Rayovac trade name was determined using the multi-period excess earnings method, which requires significant assumptions, including estimates related to revenue growth rates, gross margin rates, forecasted production credits and discount rate. The projections for the Rayovac fair value model were generated using the brand's historical performance and long-term category projections to determine forecasted cash flows and operating data. Specifically, revenue growth assumptions were based on historical trends and management’s expectations for future category trends. Gross margin rate assumptions were based on historical trends and management's cost cutting strategies. The gross margin rate utilized is consistent with rates achieved in fiscal 2025. The production credit assumptions were based on the fiscal 2025 level of production credits achieved. The discount rate used was based on a weighted-average cost of capital utilizing industry market data of similar companies.
During the third quarter of fiscal 2024, the Company determined a triggering event had occurred due to missed branded sales forecasts. As a result, the Company performed an interim impairment analysis. The result of the impairment analysis indicated the carrying values of the Rayovac and Varta trade names were greater than their fair values, resulting in indefinite-lived intangible asset non-cash impairments of $85.2 and $25.4 for the Rayovac and Varta trade names, respectively.
The quantitative estimated fair value of the Rayovac trade name was determined using the multi-period excess earnings method, which requires significant assumptions, including estimates related to revenue growth rates, gross margin rates, operating expenses (SG&A, R&D, and A&P) and discount rate. The projections for the Rayovac fair value model were generated using the brand's historical performance and long-term category projections to determine forecasted cash flows and operating data.
Specifically, revenue growth assumptions were based on historical trends and management’s expectations for future growth of the category. Gross margin rate assumptions were based on historical trends, management's cost cutting strategies, and a market place participant's production capabilities. Operating expenses were based on historical trends. The discount rate used in the trade name fair value estimate was 11.5% and was based on a weighted-average cost of capital utilizing industry market data of
similar companies. The new carrying value for the Rayovac trade name was $337.0 as of the date of the impairment and remained there at September 30, 2025.
The quantitative estimated fair value of the Varta trade name was determined using the relief from royalty model, which requires significant assumptions, including estimates related to revenue growth rates, royalty rates, and discount rate. The revenue projections for the Varta fair value model were based on the brand's historical performance and long-term category projections. Royalty rate assumptions were determined based on branded profit levels and research of external royalty rates by third-party experts. The discount rate used in the trade name fair value estimate was 11% and was based on a weighted-average cost of capital utilizing industry market data of similar companies. The updated carrying value for the Varta trade name was $11.6. Following the impairment, the Varta trade name was converted to a definite lived intangible asset with a 15 year useful life. The conversion increased annual amortization by approximately $0.8.
For fiscal 2024, a qualitative analysis was performed over the Energizer, Eveready and Armor All trade names and no impairments were identified.
For fiscal 2023, a quantitative assessment was performed over the Rayovac and Armor All trade names due to the prior year impairments, and a qualitative assessment was performed over the Energizer, Eveready and Varta trade names. No impairments were identified and the Armor All trade name fair value exceed its carrying value by more than 20%.
For Rayovac, the fair value of the trade name exceeded its carrying value of $422.2 by approximately 5%. The quantitative estimate of fair value for the Rayovac trade name was determined using the multi-period excess earnings method, which requires significant assumptions, including estimates related to revenue growth rates, gross margin rates, operating expenses (SG&A, R&D, and A&P) and discount rate. The projections for the Rayovac fair value model were generated using the Company’s three-year strategic plan, the Company's annual budget plan for fiscal 2024, and long-term category projections, to determine forecasted cash flows and operating data. Specifically, the revenue growth assumption was based on historical trends and management’s expectations for future category trends. The gross margin rate assumption was based on historical trends, management's cost cutting strategies, and a market place participant's production capabilities. The gross margin rate utilized was consistent with rates achieved in fiscal 2023. Operating expenses are based on historical trends and management's annual budget plan for fiscal 2024, as well as long-term operating and advertising strategies. The discount rate used was based on a weighted-average cost of capital utilizing industry market data of similar companies.
Changes in the assumptions used to estimate the fair value of the Company's indefinite-lived intangible assets could result in impairment charges in future periods, which could be material. Additionally, certain factors have the potential to create variances in the estimated fair values of our indefinite-lived intangible assets, which also could result in material impairment charges. These factors include (i) failure to achieve forecasted revenue growth rates, (ii) failure to achieve cost cutting and margin improvement initiatives the Company is implementing, (iii) failure to meet forecasted operating expenses, (iv) increases in the discount rate or (v) changes to production credit regulations impacting the Company's ability to claim these credits.
Total intangible assets at September 30, 2025 are as follows:
| Gross Carrying Amount | Accumulated Amortization | Accumulated Impairment | Net Carrying Amount | ||||||||||||||||||||
| Trademarks and trade names | $ | 155.0 | $ | (46.4) | $ | — | $ | 108.6 | |||||||||||||||
| Customer Relationships | 395.0 | (193.3) | (0.6) | 201.1 | |||||||||||||||||||
| Patents | 34.5 | (23.3) | — | 11.2 | |||||||||||||||||||
| Proprietary technology | 172.5 | (135.0) | — | 37.5 | |||||||||||||||||||
| Proprietary formulas | 29.2 | (17.6) | (5.3) | 6.3 | |||||||||||||||||||
| Total amortizable intangible assets | $ | 786.2 | $ | (415.6) | $ | (5.9) | $ | 364.7 | |||||||||||||||
| Trademarks and trade names - indefinite lived | 640.8 | — | — | 640.8 | |||||||||||||||||||
| Total Other intangible assets, net | $ | 1,427.0 | $ | (415.6) | $ | (5.9) | $ | 1,005.5 | |||||||||||||||
Total intangible assets at September 30, 2024 are as follows:
| Gross Carrying Amount | Accumulated Amortization | Accumulated Impairment | Net Carrying Amount | ||||||||||||||||||||
| Trademarks and trade names | $ | 155.0 | $ | (37.8) | $ | — | $ | 117.2 | |||||||||||||||
| Customer Relationships | 395.0 | (166.8) | — | 228.2 | |||||||||||||||||||
| Patents | 34.5 | (21.0) | — | 13.5 | |||||||||||||||||||
| Proprietary technology | 172.5 | (117.5) | — | 55.0 | |||||||||||||||||||
| Proprietary formulas | 29.2 | (13.8) | — | 15.4 | |||||||||||||||||||
| Total amortizable intangible assets | $ | 786.2 | $ | (356.9) | $ | — | $ | 429.3 | |||||||||||||||
| Trademarks and trade names - indefinite lived | 641.6 | — | — | 641.6 | |||||||||||||||||||
| Total Other intangible assets, net | $ | 1,427.8 | $ | (356.9) | $ | — | $ | 1,070.9 | |||||||||||||||
During the fourth quarter of fiscal 2025, the Company identified an impairment of the definite-lived intangible assets of certain proprietary formulas the Company plans to no longer utilize.
The indefinite lived intangible asset balance difference between the periods is driven by currency adjustments.
Amortizable intangible assets, with a weighted average remaining life of 9.8 years, are amortized on a straight-line basis over expected lives of 4 to 25 years. Amortization expense for intangible assets totaled $58.7, $58.2, and $59.4 for the twelve months ended September 30, 2025, 2024 and 2023, respectively.
Estimated amortization expense for amortizable intangible assets at September 30, 2025 are as follows:
| Estimated amortization expense | |||||
| 2026 | $ | 51.6 | |||
| 2027 | 49.9 | ||||
| 2028 | 47.1 | ||||
| 2029 | 39.9 | ||||
| 2030 | 36.0 | ||||
| Thereafter | 140.2 | ||||
| Estimated future amortization expense | $ | 364.7 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 18, 2025 | Showing above |
| 2024 | Nov 19, 2024 | |
| 2023 | Nov 14, 2023 | |
| 2022 | Nov 15, 2022 | |
| 2021 | Nov 16, 2021 | |
| 2020 | Nov 17, 2020 | |
| 2019 | Nov 19, 2019 | |
| 2018 | Nov 16, 2018 | |
| 2017 | Nov 14, 2017 | |
| 2016 | Nov 15, 2016 | |
| 2015 | Nov 20, 2015 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.