Energizer 2009 Annual Report Download - page 23

ENERGIZER HOLDINGS INC. 2009 ANNUAL REPORT PAGE 21
the acquired assets and liabilities will impact the determination of
future operating results. The Company uses a variety of informa-
tion sources to determine the value of acquired assets and liabilities
including: third-party appraisers for the values and lives of property,
identifiable intangibles and inventories; actuaries for defined benefit
retirement plans and legal counsel or other experts to assess the
obligations associated with legal, environmental or other claims.
ACCOUNTING STANDARDS
See discussion in Note 2 to the Consolidated Financial Statements
related to recently issued accounting standards.
FORWARD-LOOKING STATEMENTS
This document contains both historical and forward-looking state-
ments. Forward-looking statements are not based on historical facts
but instead reflect our expectations, estimates or projections concern-
ing future results or events, including statements regarding the impact
on battery volume growth and category value resulting from the current
economic downturn, new device trends, migration to private label
brands and other factors; our competitive position and market share
presence in both Household Products and Personal Care categories;
recent battery category decline and the outlook for category recovery;
anticipated advertising and promotional spending, capital expenditures
and other investments during fiscal 2010 and the source of funding for
these expenditures; the impact of favorable currencies and product
costs on segment profit for the year; anticipated favorability of
currencies and commodities, material and other input costs during
fiscal 2010; compliance with our debt covenants, the value of our
debt structure, and the anticipated benefits of reducing leverage and
maintaining a covenant cushion; the anticipated impact of contractual
purchase obligations and adequacy of our cash flows to meet liquidity
requirements; anticipated declines in affiliate operating profit; and the
possibility of material environmental costs in excess of accruals. These
statements are not guarantees of performance and are inherently
subject to known and unknown risks, uncertainties and assumptions
that are difficult to predict and could cause our actual results,
performance or achievements to differ materially from those expressed
in or indicated by those statements. We cannot assure you that any of
our expectations, estimates or projections will be achieved.
The risk factors set forth in our Annual Report on Form 10-K, in the
section entitled “Risk Factors”, could affect future results, causing our
results to differ materially from those expressed in our forward-looking
statements.
Numerous other factors could cause our actual results and events to
differ materially from those expressed or implied by forward-looking
statements, including, without limitation:
■ risks associated with the current economic environment and credit
crisis;
■ failure to generate sufficient cash to service our indebtedness, invest
as desired, and grow our business;
■ limitations imposed by various covenants in our indebtedness;
■ our ability to successfully access capital markets and ensure
adequate liquidity during the current economic environment and
credit crisis;
■ the extent to which our lenders have suffered losses related to the
weakening economy that would impair their ability to fund our
borrowings;
■ our ability to continue to develop new products;
■ our ability to execute our business strategy, achieve profitability, or
maintain relationships with existing customers in our competitive
industries;
■ the impact of economic conditions, changes in technology, and
device trends on demand for our products;
■ the impact of changes in foreign, cultural, political, and financial
market conditions on our international operations;
■ the effect of currency fluctuations;
■ changes in our raw material costs or disruptions in the supply of raw
materials;
■ our ability to generate sufficient cash flow to support carrying values
of our goodwill, trademarks, other intangible assets, and other
long-lived assets;
■ competitive promotional, pricing or product innovation activity,
retailer inventory reductions or product placement decisions, and
loss of significant retailer customers;
■ the effect of regulation on our business in the U.S. and abroad;
■ events that may disrupt our manufacturing facilities or supply
channels;
■ the extent of product liability and other claims against us;
■ changes in the funding obligations for our pension plan;
■ the resolution of our tax contingencies and the extent to which they
result in additional tax liabilities;
■ our ability to adequately protect our intellectual property rights;
■ the impact of cost reduction measures on our competitive position;
■ our ability to continue to make strategic acquisitions and achieve
the desired financial benefits; and
■ the impact of any restructuring and realignment initiatives.
The list of factors above is illustrative, but by no means exhaustive. All
forward-looking statements should be evaluated with the understanding
of their inherent uncertainty. In addition, other risks and uncertainties not
presently known to us or that we consider immaterial could affect the
accuracy of any such forward-looking statements. The forward-looking
statements included in this document are only made as of the date of
this document and we disclaim any obligation to publicly update any
forward-looking statement to reflect subsequent events or circum-
stances. Additional risks and uncertainties include those detailed
from time to time in the Company’s publicly filed documents.