On February 2, 2026, we closed the sale of our Feminine Care segment to Essity and received proceeds of approximately $340.0 on a cash-free and debt-free basis. In the first quarter of fiscal 2026, the assets and liabilities of the segment were classified as held for sale and the segment’s results are presented as discontinued operations. This change was applied on a retrospective basis. As of the date we determined the Feminine Care segment to be held for sale, we tested the assets within the disposal group, including goodwill, for impairment and recorded a goodwill impairment loss of $37.4. Fair value of the reporting unit was determined under a market approach and based on the offer received to purchase the disposal group, a Level 3 fair value input.

The following table presents the financial results of Feminine Care included in (Loss) earnings from discontinued operations, net of tax for the three and six months ended March 31, 2026 and 2025:


	Three Months Ended March 31,				Six Months Ended March 31,
	2026		2025		2026		2025
Net sales	$	23.3	$	64.1	$	87.3	$	127.4
Cost of products sold	16.1		44.8		64.1		89.0
Gross profit	7.2		19.3		23.2		38.4

Selling, general and administrative expense	2.2		2.9		14.7		6.2
Advertising and sales promotion expense	1.5		5.6		3.5		9.8
Research and development expense	0.3		0.5		0.9		1.0
Restructuring charges	—		0.4		0.2		0.5
Impairment charges	—		—		37.4		—
Operating income (loss)	3.2		9.9		(33.5)		20.9
(Gain) loss on assets held for sale	(1.6)		—		2.2		—
Earnings (loss) from discontinued operations before income taxes	4.8		9.9		(35.7)		20.9
Income tax provision on discontinued operations (1)	19.4		1.7		15.4		4.7
(Loss) earnings from discontinued operations, net of tax	$	(14.6)	$	8.2	$	(51.1)	$	16.2

(1) The income tax provision on discontinued operations differs from the federal statutory rate primarily due to non-deductible goodwill included in the book carrying value used to compute the (gain)/loss of the disposed of business.

The following table reconciles the gross proceeds with the loss on assets held for sale included in (Loss) earnings from discontinued operations, net of tax:

In the second quarter of 2026, upon derecognizing the net assets of the disposal group because of the closing of the transaction, we finalized the calculation of the loss on assets held for sale reflective of a final purchase price adjustment, transaction costs and revised carrying amounts at the sale date.

The following table presents the carrying amounts of assets and liabilities that were classified as held for sale on the Condensed Consolidated Balance Sheet as of September 30, 2025:


	September 30, 2025
Inventories	$	50.9
Other current assets	8.7
Current assets held for sale	59.6

Property, plant and equipment, net	74.3
Goodwill	154.0
Other intangible assets, net	93.1
Other assets	0.4

Non-current assets held for sale	321.8
Total assets held for sale	381.4

Other current liabilities	5.2
Current liabilities held for sale	5.2

Total liabilities held for sale	$	5.2


	Three Months Ended March 31,				Six Months Ended March 31,
	2026		2025		2026		2025
Capital expenditures	$	0.8	$	1.6	$	1.2	$	3.0
Depreciation and amortization	—		3.6		1.3		7.2

The goodwill impairment charge of $37.4 and loss on assets held for sale of $2.2 are the material non-cash amounts included in the Condensed Consolidated Statements of Cash Flows which are included in operating activities for the six months ended March 31, 2026.

In connection with the divestiture, Edgewell entered into a Transition Services Agreement (“TSA”) with Essity. Pursuant to the TSA, Edgewell will provide certain services to Essity, on an interim, transitional basis from and after closing for an initial duration of twelve months. The TSA covers various services such as operations and supply chain, IT, commercial, sales, and finance, controllership and global business support activities. The remuneration of such services is intended to allow the Company to recover a significant portion of its costs and expenses of providing such services.

The costs and reimbursements related to services provided by Edgewell under the TSA are recorded in continuing operations within the Condensed Consolidated Statement of Earnings and Comprehensive Income. During the three and six months ended March 31, 2026 approximately $6.7 of TSA income was recognized in Other (income) expense, net.