Energizer 2005 Annual Report Download - page 43

ENR 2005 Annual Report 41
ALLOWANCE FOR DOUBTFUL ACCOUNTS
2005 2004 2003
Balance at beginning of year $15.0 $9.8 $ 6.9
Acquisition of SWS –– 2.0
Provision charged to expense 0.8 3.4 3.7
Write-offs, less recoveries (3.3) (2.5) (4.4)
Special Purpose Entity –4.3 1.6
Balance at end of year $12.5 $ 15.0 $ 9.8
SUPPLEMENTAL CASH FLOW STATEMENT INFORMATION
2005 2004 2003
Interest paid $48.1 $ 32.0 $ 31.6
Income taxes paid 86.4 72.9 75.6
19. Segment Information
The Company’s operations are managed via three major segments –
North America Battery (U.S. and Canada battery and lighting prod-
ucts), International Battery(rest of world batteryand lighting prod-
ucts) and Razors and Blades (global razors, blades and related
products). The Company reports segment results reflecting all profit
derived from each outside customer sale in the region in which
the customer is located. Research and development costs for the
battery segments are combined and included in the Total Battery
segment results. Research and development costs for Razors and
Blades are included in that segment’s results. Segment performance
is evaluated based on segment operating profit exclusive of general
corporate expenses, costs associated with most restructuring,
integration or business realignment and amortization of intangible
assets. Financial items, such as interest income and expense, are
managed on a global basis at the corporate level.
On March 28, 2003, the Company acquired the worldwide SWS
business from Pfizer, Inc. Following the acquisition of SWS, the
Company has adopted an operating model that includes a combi-
nation of stand-alone and combined business functions between
the batteryand razor and blades businesses, varying by country
and region of the world. Shared functions include product ware-
housing and distribution, various transaction processing functions,
legal and environmental activities, and in some countries, combined
sales forces and management. For shared business functions, the
Razors and Blades segment has been charged only the actual incre-
mental cost of assuming additional SWS work. Such amounts are
less than fully allocated costs and do not represent the costs of
such services if performed on a stand-alone basis.
Wal-MartStores, Inc. and its subsidiaries accounted for 17.5%, 16.6%
and 15.8% of total net sales in 2005, 2004 and 2003, respectively,
primarily in North America. Corporate assets shown in the following
table include all cash and cash equivalents, financial instruments,
pension assets and deferred tax assets that are managed outside of
operating segments.