Energizer 2013 Annual Report Download - page 95

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ENERGIZER HOLDINGS, INC.
(Dollars in millions, except per share data)
Allowance for Doubtful Accounts 2013 2012 2011
Balance at beginning of year $ 15.9 $ 15.9 $ 13.2
Impact of acquisition —— 0.8
Provision charged to expense, net of reversals (0.3)2.2 4.6
Write-offs, less recoveries, translation, other 0.4 (2.2)(2.7)
Balance at end of year $ 16.0 $ 15.9 $ 15.9
Income Tax Valuation Allowance 2013 2012 2011
Balance at beginning of year $ 11.9 $ 12.6 $ 11.0
Provision charged to expense 0.5 — 11.4
Reversal of provision charged to expense (0.2)(0.8)(4.6)
Write-offs, translation, other (2.7)0.1 (5.2)
Balance at end of year $ 9.5 $ 11.9 $ 12.6
Supplemental Disclosure of Cash Flow Information 2013 2012 2011
Interest paid, including cost of early debt retirement $ 126.5 $ 117.5 $ 141.8
Income taxes paid $ 142.2 $ 113.0 $ 206.4
(18) Segment Information
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 portable lighting products). Segment performance is evaluated based on segment
operating profit, exclusive of general corporate expenses, share-based compensation costs, costs associated with most
restructuring initiatives including the 2013 restructuring detailed below, acquisition integration or business realignment
activities, and amortization of intangible assets. Financial items, such as interest income and expense, are managed on a global
basis at the corporate level. The exclusion from segment results of charges such as other acquisition transaction and integration
costs, and substantially all restructuring and realignment costs, reflects management's view on how it evaluates segment
performance.
The Company's operating model includes a combination of stand-alone and combined business functions between the Personal
Care and Household Products businesses, varying by country and region of the world. Shared functions include product
warehousing and distribution, various transaction processing functions, and in some countries, a combined sales force and
management. The Company applies a fully allocated cost basis, in which shared business functions are allocated between the
segments. Such allocations are estimates, and also do not represent the costs of such services if performed on a stand-alone
basis.
For the fiscal year ended September 30, 2013, the Company recorded $139.3 in restructuring charges related to its 2013
restructuring. The 2013 restructuring charges were reported on a separate line in the Consolidated Statements of Earnings and
Comprehensive Income. In addition, pre-tax costs of $5.2, for the twelve months ended September 30, 2013, associated with
certain information technology enablement activities related to our restructuring initiatives were included in SG&A on the
Consolidated Statement of Earnings and Comprehensive Income. Also, pre-tax costs of $6.1, for the twelve months ended
September 30, 2013, associated with obsolescence charges related to the exit of certain non-core product lines as part of our
restructuring, were included in Cost of products sold on the Consolidated Statements of Earnings and Comprehensive Income.
The information technology costs and non-core inventory obsolescence charges are considered part of the total project costs
incurred for our restructuring initiative. In fiscal 2012 the Company recored $7.3 of costs associated with consulting activities
related to the 2013 restructuring plan. See Note 3 of the Notes to Consolidated Financial Statements.
In fiscal 2013, the Company approved and communicated changes to certain pension and post-retirement benefits. Effective
January 1, 2014, the pension benefit earned to date by active participants under the legacy Energizer U.S. pension plan will be
frozen and future service benefits will no longer be accrued under this retirement program. Additionally, and also effective on
December 31, 2013, certain post-retirement medical and life insurance benefits will be terminated. As a result of these actions,
the Company recorded pre-tax pension and post-retirement benefit gains of $107.6 for the twelve months ended September 30,
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