Energizer 2011 Annual Report Download - page 19

In addition, the Company undertook certain programs to reduce or eliminate the environmental contamination at the
rechargeable battery facility in Gainesville, Florida, which was divested in November 1999. Responsibility for those programs
was assumed by the buyer at the time of the divestiture. In 2001, the buyer, as well as its operating subsidiary which owned and
operated the Gainesville facility, filed petitions in bankruptcy. In the event that the buyer and its affiliates become unable to
continue the programs to reduce or eliminate contamination, the Company could be required to bear financial responsibility for
such programs as well as for other known and unknown environmental conditions at the site. Under the terms of the
Reorganization Agreement between the Company and Ralston Purina Company, however, which has been assumed by an
affiliate of The Nestle Corporation, Ralston's successor is obligated to indemnify the Company for 50% of any such liabilities
in excess of $3 million.
Under the terms of the Stock and Asset Purchase Agreement between Pfizer, Inc. and the Company, relating to the
acquisition of the SWS business, environmental liabilities related to pre-closing operations of that business, or associated with
properties acquired, are generally retained by Pfizer, subject to time limitations varying from 2 years to 10 years following
closing with respect to various classes or types of liabilities, minimum thresholds for indemnification by Pfizer, and maximum
limitations on Pfizer's liability, which thresholds and limitations also vary with respect to various classes or types of liabilities.
Many European countries, as well as the European Union, have been very active in adopting and enforcing environmental
regulations. In addition, certain regulations have been enacted or are being considered in North America and certain European
and Latin American countries with respect to battery recycling programs. As such economies develop, it is possible that new
regulations may increase the risk and expense of doing business in such countries.
Accruals for environmental remediation are recorded when it is probable that a liability has been incurred and the amount of
the liability can be reasonably estimated, based on current law and existing technologies. These accruals are adjusted
periodically as assessments take place and remediation efforts progress, or as additional technical or legal information becomes
available.
It is difficult to quantify with certainty the potential financial impact of actions regarding expenditures for environmental
matters, particularly remediation, and future capital expenditures for environmental control equipment. Nevertheless, based
upon the information currently available, the Company believes that its ultimate liability arising from such environmental
matters, taking into account established accruals of approximately $20 million for estimated liabilities at September 30, 2011,
should not be material to the business or financial condition of the Company. Total environmental capital expenditures and
operating expenses are not expected to have a material effect on our total capital and operating expenditures, consolidated
earnings or competitive position. However, current environmental spending estimates could be modified as a result of changes
in our plans, changes in legal requirements, including any requirements related to global climate change, or other factors.
Certain of Energizer's products are subject to regulation under the Federal Food, Drug and Cosmetic Act and are regulated
by the U.S. Food and Drug Administration (“FDA”).
The FDA adopted in June 2011 a final rule setting forth testing requirements and labeling standards for sunscreen products.
The rule results in new testing requirements and revised labeling for the Banana Boat and Hawaiian Tropic product lines, as
well as competitors' products by June 19, 2012. Energizer does not expect the costs of complying with these changes to be
material.
Available Information
Energizer regularly files periodic reports with the Securities and Exchange Commission (“SEC”), including annual reports
on Form 10-K and quarterly reports on Form 10-Q, as well as, from time to time, current reports on Form 8-K, and
amendments to those reports. The SEC maintains an Internet site containing these reports, and proxy and information
statements, at www.sec.gov. These filings are also available free of charge on Energizer's website, at www.energizer.com, as
soon as reasonably practicable after their electronic filing with the SEC. Information on Energizer's website does not
constitute part of this Form 10-K.
Other Matters
Additional descriptions of the business of Energizer in response to Item 1, and the summary of selected financial data
appearing under “ENERGIZER HOLDINGS, INC. - MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF
OPERATIONS AND FINANCIAL CONDITION and appearing under “ENERGIZER HOLDINGS, INC. - NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS - Note 19 - Segment Information,” are included in Exhibit 13 attached hereto
and incorporated herein by reference. This information will also appear in the Energizer Holdings, Inc. 2011 Annual Report.
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