Energizer 2007 Annual Report Download

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Energizer Holdings, Inc.
2007 Annual Report

Table of contents

  • Page 1
    What do you see? Energizer Holdings, Inc. 2007 Annual Report

  • Page 2
    ... Drop-In™ Skin Care Banana Boat® Sport Mist Feminine Care Gentle Glide® Razors & Blades Intuition Plus ® Quattro Trimmer ® Lighting Weather Ready® Hard Case® Inspection Light 6 LED Headlight Batteries Energizer MAX ® ® Energizer e ® 2® Lithium ® Energi To Go ® 2000 2003...

  • Page 3
    Energizer Holdings, Inc. 2007 Annual Report We see growth. Building on a foundation of two universally recognized brands in a single category, Energizer quickly grew to four established brands in two major consumer goods categories. With the strategic addition of Playtex Products, we enter fiscal ...

  • Page 4
    Energizer Holdings, Inc. 2007 Annual Report Financial Highlights Energizer Holdings, Inc. is a consumer goods company operating globally in the broad categories of household and personal care products. We currently offer solutions in the portable power and lighting products domains of household ...

  • Page 5
    ... 2007 was another strong year for Energizer Holdings as we overcame significant challenges, gained momentum and market share, and expanded our consumer products portfolio with the acquisition of market-leading brands - achieving double-digit earnings growth and strengthening our businesses. In just...

  • Page 6
    ... balanced with our household goods business. As such, we are restructuring the company into the Household Products Division (Energizer® and Eveready®) and the Personal Care Division (Schick-Wilkinson Sword and Playtex Products), and going forward, we will report business and financial results in...

  • Page 7
    ... Lithium® batteries are the world's longest-lasting AA and AAA batteries in hightech, high-drain devices - lasting up to seven times longer than Energizer® MAX® in digital cameras. (AA only. Results vary by camera.) Quattro® Titanium The new next-generation Schick® Quattro® Titanium products...

  • Page 8
    ... featuring cutting-edge LED light sources for extreme brightness, extended run-times in cold temperatures, light output control and lightweight design. Compact Charger The space-saving Energizer® Compact Charger easily fits in a pocket, purse or drawer, and slides open to hold two AAs and two AAAs...

  • Page 9
    ...chargers, and the Energizer® Energi To Go® family of products; as well as premium batteries led by our Energizer® MAX® flagship alkaline brand and price batteries with Eveready® carbon zinc and Eveready® Gold® alkaline batteries. Razors and blades. Driven by double-digit growth of our Quattro...

  • Page 10
    ...moderating the impact of raw material expenses on product costs. In our battery manufacturing facilities, for example, lean has helped reduce the time needed to change over a machine from making AAs to AAAs from nine hours to just one hour. Applying lean savings to our U.S. flashlight operations has...

  • Page 11
    ... lithium AA and AAA primary batteries in high-tech devices, plus Energi To Go® chargers and a complete line of battery-powered flashlights and lanterns. Personal Care Energizer's Personal Care Division offers a diversified range of consumer products in the wet shave, skin care, feminine care...

  • Page 12
    ..., Inc. 2007 Annual Report Management's Discussion and Analysis of Results of Operations and Financial Condition (Dollars in millions, except per share and percentage data) The following discussion is a summary of the key factors management considers necessary in reviewing Energizer Holdings, Inc...

  • Page 13
    ... Holdings, Inc. 2007 Annual Report U.S. Playtex is a leading North American manufacturer and marketer in the skin, feminine and infant care industries, with a diversified portfolio of well-recognized branded consumer products. As a result of the Playtex acquisition, the Company's total debt is just...

  • Page 14
    Energizer Holdings, Inc. 2007 Annual Report Management's Discussion and Analysis of Results of Operations and Financial Condition (Dollars in millions, except per share and percentage data) products), International Battery (rest of world battery and lighting products) and Razors and Blades (global...

  • Page 15
    ... the year reflects lower consumer promotions and sampling, partially offset by higher advertising. R&D and marketing and selling spending increased $4.6 and $2.5, respectively. reviews its battery and razors and blades business models to identify potential improvements and cost savings. A project...

  • Page 16
    Energizer Holdings, Inc. 2007 Annual Report Management's Discussion and Analysis of Results of Operations and Financial Condition (Dollars in millions, except per share and percentage data) Other financing expense was favorable $15.8 in 2007 compared to 2006 due to higher interest income of $11.0 ...

  • Page 17
    ..., subject to corporate objectives and the discretion of management. A summary of the Company's significant contractual obligations at September 30, 2007 is shown below, and excludes the impact of the Playtex acquisition: Less Than Total 1 Year 1-3 Years 3-5 Years More Than 5 Years Long-term debt...

  • Page 18
    Energizer Holdings, Inc. 2007 Annual Report Management's Discussion and Analysis of Results of Operations and Financial Condition (Dollars in millions, except per share and percentage data) During the current fiscal year, the Company discontinued hedge accounting treatment for some of its ...

  • Page 19
    .... 2007 Annual Report those related to customer programs and incentives, product returns, inventories, intangible assets and other long-lived assets, income taxes, financing, pensions and other postretirement benefits, and contingencies. Actual results could differ from those estimates. This listing...

  • Page 20
    ... data) Forward-Looking Information Statements in the Management's Discussion and Analysis of Results of Operations and Financial Condition and other sections of this Annual Report to Shareholders that are not historical, particularly statements regarding the Company's positioning to meet consumer...

  • Page 21
    Energizer Holdings, Inc. 2007 Annual Report Summary Selected Historical Financial Information (Dollars in millions, except per share data) Statement of Earnings Data FOR THE YEAR ENDED SEPTEMBER 30, 2007 2006 2005 2004 2003(a) Net sales Depreciation and amortization Earnings before income taxes ...

  • Page 22
    ... management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company's assets that could have a material effect on the financial statements. Internal control over financial reporting...

  • Page 23
    ..., the Company adopted Statement of Financial Accounting Standard No. 158, Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans - an Amendment to FASB Statements No. 87, 88, 106, and 132(R), as of September 30, 2007. A company's internal control over financial reporting is...

  • Page 24
    Energizer Holdings, Inc. 2007 Annual Report Consolidated Statements of Earnings and Comprehensive Income (Dollars in millions, except per share data) Statement of Earnings YEAR ENDED SEPTEMBER 30, 2007 2006 2005 Net sales Cost of products sold Gross profit Selling, general and administrative ...

  • Page 25
    Energizer Holdings, Inc. 2007 Annual Report Consolidated Balance Sheets (Dollars in millions) SEPTEMBER 30, 2007 2006 Assets Current assets Cash and cash equivalents Trade receivables, net Inventories Other current assets Total current assets Property, plant and equipment, net Goodwill Other ...

  • Page 26
    Energizer Holdings, Inc. 2007 Annual Report Consolidated Statements of Cash Flows (Dollars in millions) YEAR ENDED SEPTEMBER 30, 2007 2006 2005 Cash Flow from Operations Net earnings Adjustments to reconcile net earnings to net cash flow from operations: Depreciation and amortization Deferred ...

  • Page 27
    Energizer Holdings, Inc. 2007 Annual Report Consolidated Statements of Shareholders Equity (Dollars in millions, shares in thousands) DOLLARS 2007 2006 2005 2007 SHARES 2006 2005 Common stock: Balance at beginning of year Activity under stock plans Ending balance 1.0 - 1.0 1.0 - 1.0 1.0 - 1.0 97...

  • Page 28
    ...Inc. 2007 Annual Report Notes to Consolidated Financial Statements (Dollars in millions, except per share and percentage data) 1. Basis of Presentation Preparation of the financial statements in conformity with generally accepted accounting principles in the U.S. (GAAP) requires Energizer Holdings...

  • Page 29
    Energizer Holdings, Inc. 2007 Annual Report Impairment of Long-Lived Assets The Company reviews longlived assets, other than goodwill and other intangible assets for impairment, when events or changes in business circumstances indicate that the remaining useful life may warrant revision or that the...

  • Page 30
    ... customer-related assets with lives ranging from five to 15 years. Goodwill and intangible assets deemed to have an indefinite life are not amortized, but reviewed annually for impairment of value. The Company monitors changing business conditions, which may indicate that the remaining useful life...

  • Page 31
    Energizer Holdings, Inc. 2007 Annual Report 4. Income Taxes The provisions for income taxes consisted of the following for the years ended September 30: 2007 2007 2006 2005 2006 2005 The source of pre-tax earnings was: United States Foreign $183.1 251.1 $434.2 $160.2 196.4 $356.6 $150.6 238.1 ...

  • Page 32
    ... reviews its battery and razors and blades business models to identify potential improvements and cost savings. A project commenced in 2006 to improve effectiveness and reduce costs of European packaging, warehouse and distribution activities, including the closing of the Company's battery packaging...

  • Page 33
    ... to future awards which may be granted under the Plan, at the 2001 Annual Meeting of Shareholders. Under the Plan, awards of restricted stock, restricted stock equivalents or options to purchase the Company's common stock (ENR stock) may be granted to directors, officers and key employees. A maximum...

  • Page 34
    Energizer Holdings, Inc. 2007 Annual Report Notes to Consolidated Financial Statements (Dollars in millions, except per share and percentage data) September 30, 2007 or September 30, 2006. The weighted-average fair value of options granted in fiscal 2005 was $15.27 per option. This was estimated ...

  • Page 35
    ..., Inc. 2007 Annual Report 8. Pension Plans and Other Postretirement Benefits The Company has several defined benefit pension plans covering substantially all of its employees in the U.S. and certain employees in other countries. The plans provide retirement benefits based on years of service and...

  • Page 36
    Energizer Holdings, Inc. 2007 Annual Report Notes to Consolidated Financial Statements (Dollars in millions, except per share and percentage data) The following tables present the benefit obligation, plan assets and funded status of the plans: Pension September 30, 2007 2006 2007 Postretirement ...

  • Page 37
    ... expense: Pension September 30, 2007 2006 2005 2007 Postretirement 2006 2005 35 Service cost Interest cost Expected return on plan assets Amortization of unrecognized prior service cost Amortization of unrecognized transition asset Recognized net actuarial loss Net periodic benefit cost $ 29...

  • Page 38
    Energizer Holdings, Inc. 2007 Annual Report Notes to Consolidated Financial Statements (Dollars in millions, except per share and percentage data) The following table presents assumptions, which reflect weighted-averages for the component plans, used in determining the above information: Pension ...

  • Page 39
    Energizer Holdings, Inc. 2007 Annual Report Rights, however, may only be exercised if a person or group has acquired, or commenced a public tender for 20% or more of the outstanding ENR stock, unless the acquisition is pursuant to a tender or exchange offer for all outstanding shares of ENR stock ...

  • Page 40
    Energizer Holdings, Inc. 2007 Annual Report Notes to Consolidated Financial Statements (Dollars in millions, except per share and percentage data) September 30, 2007 and 2006 resulted in income of $23.2 and $10.8, respectively. Concentration of Credit Risk The counterparties to foreign currency ...

  • Page 41
    ...Holdings, Inc. 2007 Annual Report 16. Supplemental Financial Statement Information Supplemental Balance Sheet Information 2007 2006 Inventories Raw materials and supplies Work in process Finished products Total inventories Other Current Assets Miscellaneous receivables Deferred income tax benefits...

  • Page 42
    ... Operations for the Company are managed via three major segments - North America Battery (U.S. and Canada battery and lighting products), International Battery (rest of world battery and lighting products) and Razors and Blades (global razors, blades, and related products). The Company reports...

  • Page 43
    ..., Inc. 2007 Annual Report 2007 2006 2005 Net Sales North America Battery International Battery Total Battery Razors and Blades Total net sales Profitability North America Battery International Battery R&D Battery Total Battery Razors and Blades Total segment profitability General corporate and...

  • Page 44
    Energizer Holdings, Inc. 2007 Annual Report Notes to Consolidated Financial Statements (Dollars in millions, except per share and percentage data) Geographic segment information on a legal entity basis: 2007 2006 2005 18. Presentation of Statements of Cash Flows The Statement of Cash Flows for ...

  • Page 45
    ... Inc. 2007 Annual Report 19. Quarterly Financial Information - (Unaudited) The results of any single quarter are not necessarily indicative of the Company's results for the full year. Net earnings of the Company are significantly impacted in the first quarter by the additional battery product sales...

  • Page 46
    ...as reported on the New York Stock Exchange. Fiscal 2007 High Low Code of Ethics The Company has adopted a code of ethics that is applicable to all of its directors and employees, including the Chief Executive Officer, Executive Vice President and Chief Financial Officer, and Controller. The Company...

  • Page 47
    Energizer Holdings, Inc. 533 Maryville University Drive St. Louis, Missouri 63141 314.985.2000 www.energizer.com © 2007 Energizer Energizer, the Energizer Bunny design and other marks are trademarks of Energizer. iPod is a registered trademark of Apple Computer, Inc.