Energizer 2013 Annual Report Download - page 17

brands. We also sell Playtex Personal Cleansing Cloths, a pre-moistened wipe for feminine hygiene as well as pads, liners and
tampons under the Stayfree, Carefree and o.b. brands.
In Infant Care, we market a broad range of products including bottles, cups, and mealtime products under the Playtex brand
name. We also offer a line of pacifiers, including the Ortho-Pro and Binky pacifiers. We believe our Playtex Diaper Genie
brand of diaper disposal systems leads the U.S. diaper pail category. The Diaper Genie brand consists of the diaper pail unit and
refill liners. The refill liners seal diapers in an odor-proof plastic film. We have recently introduced Litter Genie, a new waste
disposal solution for cat owners originating from our Diaper Genie technology.
Household Products
Energizer's Household Products division manufactures and markets one of the most extensive product portfolios in
household batteries, specialty batteries and lighting products.
In household batteries, we offer batteries using carbon zinc, alkaline, rechargeable and lithium technologies. These products
are marketed and sold in the price, premium and performance segments. This allows us to penetrate a broad range of the market
and meet most consumer needs. In addition, Energizer has a portable lighting products business that has evolved with changes
in consumer tastes and demands. We distribute our portfolio of household and specialty batteries and portable lighting products
through a global distribution network, which also provides a platform for the distribution of our personal care products.
The battery category is highly competitive as brands compete for consumer acceptance and retail shelf space. We
continually engage in ongoing reviews of all of our categories. Recent studies have indicated that an increasing number of
devices are using built-in rechargeable battery systems, particularly in developed markets. We believe this continues to create a
negative impact on the demand for primary batteries. This trend, coupled with aggressive competitive activity in the U.S. and
other markets, has and could continue to put additional pressure on segment results going forward.
2013 Restructuring Initiatives
In November 2012, the Company’s Board of Directors authorized an enterprise-wide restructuring, which included the
following objectives:
• Reduce global workforce by more than 10%, or approximately 1,500 colleagues;
• Rationalize and streamline operations facilities in the Household Products Division;
• Consolidate general and administrative functional support across the organization;
• Streamline the Household Products Division product portfolio to enable increased focus on our core battery and
portable lighting businesses;
• Streamline the marketing organization within our Household Products Division;
• Optimize our go-to-market strategies and organization structures within our international markets;
• Reduce overhead spending, including changes to benefit programs and other targeted spending reductions; and
• Create a center-led purchasing function to drive procurement savings.
The Company estimates that total gross savings from this program will be $225 million, including approximately $103
million realized in fiscal 2013, and will be fully realized in fiscal 2015. In addition, the Company estimates total pre-tax
restructuring related costs needed to execute this program will be near $250 million, including approximately $150 million of
restructuring and related costs incurred in fiscal 2013.
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