Energizer 2008 Annual Report Download - page 44

Download and view the complete annual report

Please find page 44 of the 2008 Energizer annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 48

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48

42 ENERGIZER HOLDINGS, INC. 2008 Annual Report
ALLOWANCE FOR DOUBTFUL ACCOUNTS
2008 2007 2006
Balance at beginning of year $ 9.8 $10.9 $12.5
Impact of Playtex acquisition 4.0 – –
Provision charged to expense, net of reversals (0.2) (0.2) –
Write-offs, less recoveries, translation, other (2.4) (0.9) (1.6)
Balance at end of year $ 11.2 $ 9.8 $10.9
INCOME TAX VALUATION ALLOWANCE
2008 2007 2006
Balance at beginning of year $ 4.9 $10.7 $15.1
Impact of Playtex acquisition 5.0 – –
Provision charged to expense 0.1 0.5 1.8
Reversal of provision charged to expense (0.4) (4.3) (5.7)
Write-offs, translation, other (0.5) (2.0) (0.5)
Balance at end of year $ 9.1 $ 4.9 $10.7
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
2008 2007 2006
Interest paid $143.6 $90.4 $66.7
Income taxes paid 90.6 108.5 113.3
18. SEGMENT INFORMATION
In the first quarter of fiscal 2008, the Company revised its operating
segment presentation. Operations for the Company are managed via
two segments - Household Products (Battery and Lighting Products)
and Personal Care (wet shave, skin, feminine and infant care). Segment
performance is evaluated based on segment operating profit, exclusive
of general corporate expenses, share-based compensation costs,
costs associated with most restructuring, integration or business
realignment activities and amortization of intangible assets. Financial
items, such as interest income and expense, are managed on a global
basis at the corporate level.
The reduction in gross profit associated with the write-up and subse-
quent sale of the inventory acquired in the Playtex acquisition and the
acquisition integration costs for the Playtex acquisition are not reflected
in the Personal Care segment, but rather presented as a separate
line item below segment profit, as it is a non-recurring item directly
associated with the Playtex acquisition. Such presentation reflects
management’s view on how it evaluates segment performance.
The Company’s operating model includes a combination of stand-alone
and combined business functions between the Household Products and
Personal Care businesses, varying by country and region of the world.
Shared functions include product warehousing and distribution, various
transaction processing functions, and in some countries, combined
sales forces and management. The Company applies a fully allocated
cost basis, in which shared business functions are allocated between
the businesses. Such allocations do not represent the costs of such
services if performed on a stand-alone basis. The Company applies a
fully allocated cost basis in which shared business functions are
allocated between the businesses.
Wal-Mart Stores, Inc. and its subsidiaries accounted for 20.8%, 18.8%
and 18.5% of total net sales in 2008, 2007 and 2006, 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.