Energizer 2010 Annual Report Download - page 52

Exhibit 13
ENERGIZER HOLDINGS, INC.
(Dollars in millions, except per share and percentage data)
42
parallel market mechanism. This has eliminated our ability to access the historical parallel
market to pay for imported goods and to most effectively manage our local monetary asset
balances.
Since foreign exchange is no longer available in the historical parallel market, the Company is
now using the Central Bank of Venezuela controlled parallel market rate of 5.30, as the
translation rate for our Venezuela affiliate’s financial statements for the purposes of
consolidation. This includes the translation of monthly operating results (beginning in June
2010) and the valuation of our net monetary assets under highly inflationary accounting. Since
this rate is somewhat favorable to the historical parallel rate, which was previously adopted as
the appropriate rate for translation purposes on December 31, 2009 as noted above, we have
recorded a gain, included in other financing, of approximately $2, pre-tax, to reflect the
improved translation rate for the carrying value of our Venezuela affiliate’s net monetary assets
under highly inflationary accounting. However, due to the level of uncertainty in Venezuela, we
cannot predict the exchange rate that will ultimately be used to convert our local currency
monetary assets to U.S. dollars in the future. As a result, further charges reflecting a less
favorable exchange rate outcome are possible.
Company Overview
General
Energizer Holdings, Inc., incorporated in Missouri in 1999, is one of the world’s largest
manufacturers and marketers of primary batteries, portable lighting and personal care products
in the wet shave, skin care, feminine care and infant care categories. On April 1, 2000, all of
the outstanding shares of common stock of Energizer were distributed in a tax-free spin-off to
shareholders of Ralston Purina Company.
Energizer is the successor to over 100 years of expertise in the battery and portable lighting
products industry. Its brand names Energizer and Eveready have worldwide recognition for
quality and dependability, and are marketed and sold in more than 165 countries.
On March 28, 2003, we completed the acquisition of the Schick-Wilkinson Sword (SWS)
business from Pfizer, Inc. SWS is the second largest manufacturer and marketer of men’s and
women’s wet shave products in the world. Its portfolio of products includes: the Quattro for
Women, Intuition, Lady Protector and Silk Effects Plus women’s shaving systems and the
Hydro, Quattro and Protector men’s shaving systems, as well as the Quattro, Xtreme 3, and
Slim Twin/Exacta disposables. SWS has over 75 years of history in the shaving products
industry with a reputation for high quality and innovation in shaving technology. SWS products
are sold in more than 140 countries. On June 5, 2009, we completed the acquisition of the
Edge and Skintimate shave preparation brands from S.C. Johnson & Son, Inc. (SCJ). This
added U.S. market leading shave preparation brands to our existing wet shave product
portfolio.
At the beginning of fiscal 2008, we completed the acquisition of all of the outstanding stock of
Playtex Products, Inc. (Playtex), a leading manufacturer and marketer of well-recognized
branded consumer products in North America. Its portfolio of products include Playtex feminine
care products, Playtex infant care products, Diaper Genie diaper disposal systems, Wet Ones
pre-moistened wipes, Banana Boat and Hawaiian Tropic sun care products, and Playtex
household gloves.