Energizer 2013 Annual Report Download - page 41

ENERGIZER HOLDINGS, INC.
(Dollars in millions, except per share data)
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 adjusted net
earnings and adjusted net earnings per diluted share, which exclude such items as the costs associated with restructuring
activities, certain tax items including adjustments to prior years' tax accruals, the impact of gains resulting from changes in
pension and post retirement benefits, the devaluation of the Venezuela Bolivar Fuerte, and certain other items as outlined in the
table below are not in accordance with, nor are they a substitute for, GAAP measures. In addition, other non-GAAP
comparatives in this discussion include operating results, organic sales, gross margin and other comparison changes, excluding
the impact of changes in foreign currency rates on a period over period basis versus the U.S. dollar. 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 their analysis. 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 product
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. The Company employed approximately 13,000 colleagues globally at September
30, 2013 and had fiscal 2013 net sales of $4,466.0. The Company manufactures and/or packages products in more than a dozen
countries and sells products throughout the world.
Operations for the Company are managed via two segments - Personal Care (wet shave, skin care, feminine care and infant care
products) and Household Products (battery and portable lighting products).
The Company's two divisions have distinct priorities to enhance the combined enterprise and deliver strategic objectives.
Personal Care is focused on maximizing sales and profit growth through innovation, product line extensions and share gains.
Household Products is focused on stabilizing profitability in a challenging and declining battery category to deliver strong cash
flows from our core battery and portable lights portfolio, while making select investments that provide near-term returns. Both
divisions continue to target improved working capital management as a key business objective.
Personal Care includes wet shave products sold under the Schick, Wilkinson Sword, Edge, Skintimate and Personna brands as
well as value-priced private label razors, skin care products sold under the Banana Boat, Hawaiian Tropic, Wet Ones and
Playtex brands, feminine care products sold under the Playtex brand, and the recently acquired Stayfree, Carefree and o.b.
brands in the U.S., Canada and the Caribbean, which were acquired by the Company from Johnson & Johnson in October 2013,
which is the Company's first fiscal quarter of 2014, and infant care products sold under the Playtex and Diaper Genie brands.
We manufacture and distribute Schick and Wilkinson Sword razor systems (SWS), composed of razor handles and refillable
blades, and disposable shave products for men and women. SWS's primary markets are the U.S., Japan and the larger countries
of Western Europe. We believe SWS holds the #2 global market share position in wet shaving. We also believe that Edge and
Skintimate, which are part of our wet shave portfolio, are U.S. market leading brands in shave preparation products, including
shaving gels and creams.
In skin care, we market sun care products under the Banana Boat and Hawaiian Tropic brands. We believe these brands, on a
combined basis, hold a leading market share position in the U.S. sun care category, and we have experienced meaningful
growth in these product lines in markets outside the U.S. since their acquisition in early fiscal 2008. The sun care category
varies by geographic region, but generally is segmented by product type such as general protection, tanning and babies; as well
as by method of application such as lotions and sprays. We compete across this full spectrum of sun care products. Also in skin
care, we offer Wet Ones hands and face wipes and Playtex household gloves, both of which are leading branded products in
their respective categories in the U.S.
In feminine care, we market products under the Playtex brand, and in the U.S., Canada and the Caribbean, under the Stayfree,
Carefree and o.b. brands. We offer plastic applicator tampons under the Playtex Gentle Glide and Playtex Sport brands. We
also sell Playtex Personal Cleansing Cloths, a pre-moistened wipe for feminine hygiene as well as pads, liners and tampons
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