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Exhibit 13
ENERGIZER HOLDINGS, INC.
(Dollars in millions, except per share and percentage data)
40
Management’s Discussion and Analysis of Results of Operations and Financial
Condition
The following discussion is a summary of the key factors management considers necessary in
reviewing Energizer Holdings, Inc.'s (the Company) historical basis results of operations,
operating segment results, and liquidity and capital resources. The Company reports results in
two segments: Household Products, which includes batteries and portable lighting products,
and Personal Care, which includes wet shave, skin care, feminine care and infant care
products. This discussion should be read in conjunction with the Consolidated Financial
Statements and related notes.
Non-GAAP Financial Measures
While the Company reports financial results in accordance with accounting principles generally
accepted in the U.S. (“GAAP”), this discussion includes non-GAAP measures. These non-
GAAP measures, such as comparisons excluding the impact of currencies, and excluding the
impact of the devaluation and unfavorable economic conditions in Venezuela, are not in
accordance with, nor are they a substitute for, GAAP measures. The Company believes these
non-GAAP measures provide a meaningful comparison to the corresponding reported period
and assist investors in performing analysis consistent with financial models developed by
research analysts. Investors should consider non-GAAP measures in addition to, not as a
substitute for, or superior to, the comparable GAAP measures.
Recent Developments
American Safety Razor Acquisition
On November 23, 2010, we completed the acquisition of American Safety Razor, LLC, a
Delaware limited liability company ("ASR"), as we acquired substantially all of the assets of
ASR, including the assets of its U.S. subsidiaries and the stock of its non-U.S. subsidiaries, and
assumed substantially all of the liabilities of ASR and its U.S. subsidiaries, for a cash purchase
price of $301. The Company financed this transaction with available cash of approximately
$150 and borrowings from our existing receivable securitization program. ASR will be part of
our Personal Care Segment.
Household Products Restructuring
On November 1, 2010, the Board of Directors (the “Board”) authorized a multi-year program
designed to accelerate investments in both geographic and product growth opportunities,
streamline our worldwide manufacturing operations and improve the efficiency of our
administrative operations.
The Board authorized a broad restructuring plan and has delegated authority to management
to determine the final plan with respect to the initiatives, which are expected to result in pre-tax
charges in the range of $65 to $85 over the next twelve months, with the vast majority
associated with manufacturing capacity rationalization. The remainder relates to overhead
reductions. Although the specific actions to be taken are not yet resolved, annual pre-tax
savings, relating primarily to headcount reduction and manufacturing efficiencies, are expected
to be in the range of $25 to $35, by the end of fiscal 2012.