Energizer 2011 Annual Report Download - page 38

ENERGIZER HOLDINGS, INC.
(Dollars in millions, except per share and percentage data)
Exhibit 13
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.
Statements in this Management’s Discussion and Analysis of Financial Condition and Results of Operations that are not
historical may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of
1995. See “Forward-Looking Statements” presented later in this section. The Company reports results in two segments:
Personal Care, which includes wet shave, skin care, feminine care and infant care products and Household Products, which
includes batteries and portable lighting products. This discussion should be read in conjunction with the Consolidated Financial
Statements and related notes.
Non-GAAP Financial Measures
While Energizer Holdings, Inc. reports financial results in accordance with accounting principles generally accepted in the U.S.
("GAAP"), this discussion includes certain non-GAAP financial measures. These non-GAAP measures, such as historic and
estimated future operating results, net sales and segment profit, are adjusted to exclude the impact of certain charges and
recoveries, such as foreign currencies, the results of operations in Venezuela, the acquisition of American Safety Razor (ASR)
and the related integration and transaction costs, the costs associated with restructuring and other realignment activities and
refinancing costs. The Company believes these non-GAAP measures (which are accompanied by reconciliations to the
comparable 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. Further, these non-GAAP
measures may differ from similarly titled measures presented by other companies.
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. Operations for the Company are managed via two segments - Personal Care (Wet
Shave, Skin Care, Feminine Care and Infant Care) and Household Products (Battery and Lighting Products).
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 Quattro, Xtreme 3, and Slim Twin/Exacta disposable razors. 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.
On November 23, 2010, we completed the acquisition of 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. ASR, founded in 1875, is the leading global manufacturer of
private label / value wet shaving razors and blades, and industrial and specialty blades.
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