Energizer 2014 Annual Report Download

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Energizer Holdings, Inc. 2014 Annual Report

Table of contents

  • Page 1
    Energizer Holdings, Inc. 2014 Annual Report

  • Page 2
    ... recognized Energizer® and Eveready® brands. The company markets its products throughout most of the world. Energizer Holdings, Inc. is traded on the NYSE under the ticker symbol ENR. On April 30, 2014, Energizer announced plans to separate the Personal Care and Household Products divisions into...

  • Page 3
    ...Household Products and Personal Care. Our initiatives were designed to position each company to compete, grow and create value for all stakeholders. Having successfully grown the Personal Care business to more than $2.6 billion in sales, we knew the time was right to launch two strong consumer goods...

  • Page 4
    ... and Personal Care businesses. HOUSEHOLD PRODUCTS Our Household Products business was the foundation for today's Energizer Holdings. Since 2000, the Household Products team has done an excellent job keeping a passionate focus on the needs of the retail customers and consumers. As a separate company...

  • Page 5
    ... ended September 30, 2014 Commission File No. 001-15401 ENERGIZER HOLDINGS, INC. _____ Incorporated in Missouri IRS Employer Identification No. 43-1863181 533 Maryville University Drive, St. Louis, Missouri 63141 Registrant's telephone number, including area code: 314-985-2000 Securities registered...

  • Page 6
    ... directors and executive officers are affiliates, and (ii) no party who has filed a Schedule 13D or 13G is an affiliate. Registrant does not have a class of non-voting equity securities.) Number of shares of Energizer Holdings, Inc. Common Stock ("ENR Stock"), $.01 par value, outstanding as of close...

  • Page 7
    ... About Market Risk Financial Statements and Supplementary Data Changes in and Disagreements With Accountants on Accounting and Financial Disclosure Controls and Procedures Other Information PART III 10 11 12 13 14 Directors, Executive Officers and Corporate Governance Executive Compensation...

  • Page 8
    ... business, the timing of any such spin-off, the future earnings and performance of Energizer Holdings or any of its businesses, including the Household Products and Personal Care businesses on a standalone basis if the spin-off is completed. These statements generally can be identified by the use...

  • Page 9
    ... 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. Energizer...

  • Page 10
    ...distribute and sell a complete line of private label and value-priced wet shaving disposable razors, shaving systems and replacement blades. These wet shave products are sold primarily under a retailer's store name or under value brand names such as Personna and GEM. In skin care, we market sun care...

  • Page 11
    ... 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 under the Energizer and Eveready brands. In...

  • Page 12
    ...U.S., the Household Products and Personal Care segments have separate dedicated commercial organizations, reflecting the scale and importance of these businesses. Outside the U.S., the commercial teams currently market our full portfolio of product offerings. In connection with the proposed spin-off...

  • Page 13
    ...KimberlyClark Corp. in feminine care, Bayer AG and Johnson & Johnson in skin care, and a variety of competitors in the fragmented infant care market. Our principal battery competitors are Duracell, a subsidiary of The Procter & Gamble Company, and Spectrum Brands, Inc. We believe private-label sales...

  • Page 14
    ... primary competitor in batteries, wet shave and feminine care products, The Procter & Gamble Company, and our other competitors, may have substantially greater financial, marketing, research and development and other resources and greater market share in certain segments than Energizer does, which...

  • Page 15
    ... lower prices than our products. Loss of reputation of our leading brands or failure of our marketing plans could have an adverse effect on our business. We depend on the continuing reputation and success of our brands, particularly the Energizer, Eveready, Schick, Wilkinson Sword, Edge, Skintimate...

  • Page 16
    ... may not be completed on the currently contemplated timeline or at all and may negatively impact earnings. In April 2014, we announced a plan to spin-off the Household Products business and thereby create two independent publicly traded companies, which is subject to a number of conditions including...

  • Page 17
    ... and market discount rates may result in an impairment charge, which could have an adverse impact on our operating results. If Energizer cannot continue to develop new products in a timely manner, and at favorable margins, it may not be able to compete effectively. The battery and portable lighting...

  • Page 18
    ... business, results of operations and financial condition. If the proposed spin-off is completed, the two independent companies will be smaller and have less consolidated purchasing scale. As a result, raw material and other goods and services prices may increase. Energizer's manufacturing facilities...

  • Page 19
    ... business. Energizer's current debt level is approximately $2.3 billion. We may be required to dedicate a substantial portion of our cash to debt service, thereby reducing funds available to fund working capital, capital expenditures, acquisitions and investments and other general corporate purposes...

  • Page 20
    ... and effectively integrate acquired companies to achieve desired financial benefits. We have completed a number of significant acquisitions since becoming an independent company in 2000, including, most recently, the acquisition of the Stayfree, Carefree and o.b. brands in the U.S., Canada and the...

  • Page 21
    ...list of Energizer's principal plants and facilities as of the date of filing. Management believes that the Company's production facilities are adequate to support the business and the properties and equipment have been well maintained. HOUSEHOLD PRODUCTS North America Asheboro, NC (2) Bennington, VT...

  • Page 22
    ...Middle East from 2008 to 2012; Vice President, North America Household Products Division from 2005 to 2008; Vice President, Sales and Trade Marketing from 1999 to 2005 and Director, Brand Marketing from 1996 to 1999. Age: 53. Daniel J. Sescleifer- Executive Vice President and Chief Financial Officer...

  • Page 23
    ...approximately 9,800 shareholders of record of the the Company's Common Stock. The following table sets forth the range of market prices for ENR Stock for the period from October 1, 2012 to September 30, 2014. Market Price Range First Quarter Second Quarter Third Quarter Fourth Quarter $ $ $ $ FY2014...

  • Page 24
    ... were repurchased on the open market during the fiscal year under this share repurchase authorization. Since the end of fiscal 2014 and through the date of this report, the Company has not repurchased any shares of its common stock, exclusive of a small number of shares related to the net settlement...

  • Page 25
    ...filings under the Exchange Act is recorded, processed, summarized and reported accurately and within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to Energizer's management, including its Chief Executive Officer and Chief Financial...

  • Page 26
    ... set forth in our 2014 Proxy Statement under the caption "Section 16(a) Beneficial Ownership Reporting Compliance" and is incorporated herein by reference. The Company has adopted business practices and standards of conduct that are applicable to all employees, including its Chief Executive Officer...

  • Page 27
    ...Johnson & Son, Inc., a Wisconsin corporation and Energizer (incorporated by reference to Exhibit 2.1 of Energizer's Current Report on Form 8-K filed May 11, 2009).*** Asset Purchase Agreement dated as of October 8, 2010, by and between American Safety Razor, LLC, a Delaware limited liability company...

  • Page 28
    ... of Energizer's Annual Report on Form 10-K for the year ended September 30, 2008).* 10.21 First Amendment to the 2009 Restatement of Energizer Holdings, Inc. Deferred Compensation Plan (incorporated by reference to Exhibit 4.3 to Energizer's Registration Statement on Form S-8 filed November 21, 2012...

  • Page 29
    ... Holdings, Inc. Deferred Compensation Plan (incorporated by reference to Exhibit 4.6 to Energizer's Registration Statement on Form S-8 filed November 21, 2012).* 10.25 Form of 2007 Note Purchase Agreement dated October 15, 2007 (incorporated by reference to Exhibit 10.1 of Energizer's Current Report...

  • Page 30
    ... 10.1 to the Company's Current Report on Form 8-K filed May 2, 2012).* 10.56 Third Amended and Restated Receivables Purchase Agreement, dated as of May 4, 2009, as amended June 25, 2012, among Energizer Receivables Funding Corporation, Energizer Battery, Inc., Energizer Personal Care, LLC, The Bank...

  • Page 31
    ... by reference to Exhibit 10.1 to the 10.69 Company's Current Report on Form 8-K filed November 14, 2014.* 12 13 21 23 31.1 31.2 32.1 32.2 101 Calculation of Earnings to Fixed Charges.** Portions of the Energizer Holdings, Inc. 2014 Annual Report to Shareholders for the year ended September 30, 2013...

  • Page 32
    ...by the undersigned, thereunto duly authorized. ENERGIZER HOLDINGS, INC. By /s/ Ward M. Klein Ward M. Klein Chief Executive Officer Date: November 18, 2014 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the...

  • Page 33
    ...including, without limitation, statements regarding the planned spin-off of the Household Products business, the timing of any such spin-off, future company-wide or segment sales, earnings and earnings per share, investments, initiatives, capital expenditures, product launches, consumer trends, cost...

  • Page 34
    ... 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...

  • Page 35
    ..., Schick, Wilkinson Sword, Playtex, Edge, Skintimate, and, in the U.S. and Canada, Stayfree, Carefree and o.b. logos as our trademarks or those of our subsidiaries. Product names appearing throughout in italics are trademarks of Energizer Holdings, Inc. or its subsidiaries. This Annual Report also...

  • Page 36
    ...Developments Acquisition of Feminine Care Brands In October 2013, which is the first fiscal quarter of 2014, the Company acquired the Stayfree pad, Carefree liner and o.b. tampon feminine care brands in the U.S., Canada and the Caribbean from Johnson & Johnson for an aggregate cash purchase price of...

  • Page 37
    ... On April 28, 2014, the Board of Directors authorized management to pursue a plan to separate the Company's Household Products and Personal Care divisions into two independent, publicly traded companies. The spin-off is planned as a tax-free spin-off to the Company's shareholders and is expected to...

  • Page 38
    ... of September 30, 2014 (at the 6.30 bolivars per U.S. dollar rate) for household and personal care products imported in accordance with the second CNP executed between the Company and the Venezuela government. Depending on the ultimate transparency and liquidity of the SICAD I and II markets, it is...

  • Page 39
    ... Net Earnings/Diluted EPS - GAAP Impacts, net of tax: expense (income) 2013 restructuring and related costs (1) One time spin-off costs Feminine care acquisition/integration costs Acquisition inventory valuation Net pension / post retirement benefit gains 2011 Household Products restructuring Other...

  • Page 40
    ENERGIZER HOLDINGS, INC. (Dollars in millions, except per share data) For further discussion regarding net sales in Personal Care and Household Products, including a summary of reported versus organic changes, please see the section titled "Segment Results" provided below. Gross Profit Gross profit ...

  • Page 41
    ...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...

  • Page 42
    ...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 plans was frozen and future service benefits are no longer being...

  • Page 43
    ...Hydro men's systems, Hydro Silk women's systems, and the launch of Hydro Disposable razors. These gains were partially offset by lower sales of legacy branded men's and women's systems and shave preparations; Skin Care net sales were essentially flat on a reported and organic basis as sun care sales...

  • Page 44
    ... the impact of currency movements, organic sales declined 2.6% due primarily to the loss of distribution within two U.S. retail customers (which occurred in the fourth fiscal quarter of fiscal 2013), continued household battery category declines and the exiting of certain non-core product lines...

  • Page 45
    ... Financial Statements. In connection with the feminine care brands acquisition, the Company recorded a pre-tax inventory valuation adjustment of $8.0 representing the increased fair value of the inventory based on the estimated selling price of the finished goods acquired at the close date...

  • Page 46
    ... sale of inventory acquired in the feminine care acquisition. Additionally, the Company also recorded pre-tax acquisition/integration costs of $9.5 for the twelve months ended September 30, 2014. See Note 4 of the Notes to Consolidated Financial Statements. For fiscal 2013, general corporate...

  • Page 47
    ... than fiscal 2013 due to less of an impact from our working capital improvement initiative and lower net earnings. Investing Activities Net cash used by investing activities was $263.4, $89.1 and $94.9 in fiscal years 2014, 2013 and 2012, respectively. The primary driver of the change in net cash...

  • Page 48
    ... stock, exclusive of a small number of shares related to the net settlement of certain stock awards for tax withholding purposes, for a total cost of approximately $94.4. All shares were purchased in the open market under the Company's current authorization from its Board of Directors. The Company...

  • Page 49
    ENERGIZER HOLDINGS, INC. (Dollars in millions, except per share data) Market Risk Sensitive Instruments and Positions The market risk inherent in the Company's financial instruments and positions represents the potential loss arising from adverse changes in currency rates, commodity prices, interest...

  • Page 50
    ... increase in battery and lighting products sales. This was recently evident as the Company estimates that incremental volume in response to Hurricane Sandy added approximately $18 to sales in the first fiscal quarter of 2013. Customer orders for the Company's sun care products are highly seasonal...

  • Page 51
    ... have an impact on the timing and amounts of sales, operating income, working capital and cash flows such as the timing of new product launches by competitors or by the Company; the timing of advertising, promotional, merchandising or other marketing activities by competitors or by the Company; and...

  • Page 52
    ...of sales, and reserve amounts on our consolidated balance sheet for anticipated returns based upon an estimated return level, in accordance with GAAP. Customers are required to pay for the sun care product purchased during the season under the required terms. We generally receive returns of U.S. sun...

  • Page 53
    .... Effective January 1, 2014, the pension benefit earned to date by active participants under the legacy Energizer U.S. pension plan was frozen and future service benefits are no longer being accrued under this retirement program. Retirement benefits for the impacted colleagues were supplemented to...

  • Page 54
    ... a determinable life is based on a number of factors including the competitive environment, market share, brand history, underlying product life cycles, operating plans and the macroeconomic environment. Our estimates of the useful lives of determinable-lived intangible assets are primarily based on...

  • Page 55
    ... Household Products and Personal Care reporting units. There were no indications of impairment of goodwill noted during this testing. In addition, we completed impairment testing on indefinite-lived intangible assets other than goodwill, which are trademarks/brand names used in our various product...

  • Page 56
    ...Balance Sheet Data 2014 Working capital (c) Property, plant and equipment, net Total assets Long-term debt (a) (b) (c) Year over year comparatives may be impacted by the timing of acquisitions. The Company began paying dividends in the fourth fiscal quarter of 2012. Working capital is current assets...

  • Page 57
    ... SEPTEMBER 30, 2014 2013 restructuring (g) Spin-off costs Feminine care acquisition/integration costs Acquisition inventory valuation ASR integration/transaction costs Other realignment/integration costs Net pension/post-retirement gains Venezuela devaluation/other impacts Prior restructuring Early...

  • Page 58
    ... management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company's assets that could have a material effect on the financial statements. Internal control over financial reporting...

  • Page 59
    ...Directors of Energizer Holdings, Inc.: In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of earnings and comprehensive income, cash flows and shareholders' equity present fairly, in all material respects, the financial position of Energizer Holdings...

  • Page 60
    ENERGIZER HOLDINGS, INC. CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (Dollars in millions, except per share data) Statement of Earnings Net sales Cost of products sold Gross profit Selling, general and administrative expense Advertising and sales promotion expense Research and ...

  • Page 61
    ENERGIZER HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (Dollars in millions, except share count and par values) SEPTEMBER 30, 2014 Assets Current assets Cash and cash equivalents Trade receivables, net Inventories Other current assets Total current assets Property, plant and equipment, net Goodwill ...

  • Page 62
    ... Net increase/(decrease) in debt with original maturities of 90 days or less Common stock purchased Cash dividends paid Proceeds from issuance of common stock Excess tax benefits from share-based payments Net cash used by financing activities Effect of exchange rate changes on cash Net increase in...

  • Page 63
    ENERGIZER HOLDINGS, INC. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Dollars in millions, shares in thousands) DOLLARS 2014 Common stock: Balance at beginning of year Treasury share retirement Ending balance Additional paid-in capital: Balance at beginning of year Activity under stock plans ...

  • Page 64
    ..., the Company evaluates its estimates, including those related to customer promotional programs and incentives, product returns, bad debts, the carrying value of inventories, intangible and other long-lived assets, income taxes, pensions and other postretirement benefits, share-based compensation...

  • Page 65
    ... the Company's best estimate of probable losses inherent in the receivables portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other currently available information. Bad debt expense is included in Selling, general and administrative...

  • Page 66
    ... care brands acquisition, the Company recorded an increase in the estimated fair value of inventory acquired of $8.0, to bring the carrying value of the inventory purchased to an amount which approximated the estimated selling price of the finished goods on hand at the acquisition closing date...

  • Page 67
    ...of sales, and reserve amounts on our consolidated balance sheet for anticipated returns based upon an estimated return level, in accordance with GAAP. Customers are required to pay for the sun care product purchased during the season under the required terms. We generally receive returns of U.S. sun...

  • Page 68
    ...Earnings and Comprehensive Income. (4) Acquisition of Feminine Care Brands In October 2013, the Company completed the acquisition of the Stayfree pad, Carefree liner and o.b. tampon feminine care brands in the U.S., Canada and the Caribbean from Johnson & Johnson for an aggregate cash purchase price...

  • Page 69
    ... of a center-led purchasing function, and rationalization and streamlining of the Household Products operations facilities, product portfolio and marketing organization. In January 2014, the Company's Board of Directors authorized an expansion of scope of the previously announced 2013 restructuring...

  • Page 70
    ... its reportable segments. The estimated impact of allocating such charges to segment results would have been as follows: Twelve Months Ended September 30, 2014 Personal Household Care Products Corporate Total Severance and related benefit costs Accelerated depreciation Consulting, program management...

  • Page 71
    ... For the twelve months ended September 30, 2012, our prior Household Products restructuring activities generated pre-tax income of $6.8, which was driven by the $13 gain on the sale of our former battery manufacturing facility in Switzerland. This plant was closed in fiscal 2011. This gain was...

  • Page 72
    ... of September 30, 2014 (at the 6.30 per U.S. dollar rate) for household and personal care products imported in accordance with the second CNP executed between the Company and the Venezuela government. Depending on the ultimate transparency and liquidity of the SICAD I and II markets, it is possible...

  • Page 73
    ENERGIZER HOLDINGS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in millions, except per share) In addition, we completed impairment testing on indefinite-lived intangible assets other than goodwill, which are trademarks/ brand names used in our various product categories. No impairment ...

  • Page 74
    ...in Asia, fund pension and other post retirement obligations, fund capital projects and to support foreign growth initiatives including potential acquisitions, such as the foreign cash utilized to fund a portion of the October 2013 feminine care brand acquisition. At September 30, 2014, approximately...

  • Page 75
    .... At this time, the Company does not anticipate any material adjustments to its financial statements resulting from tax examinations currently in progress. (9) Earnings Per Share For each period presented below, basic earnings per share is based on the average number of shares outstanding during the...

  • Page 76
    ... or options to purchase the Company's common stock (ENR stock) may be granted to directors, officers and employees. The 2009 Plan was amended and restated by approval of the shareholders at the January 2011 Annual Meeting of Shareholders to set the maximum number of shares authorized for issuance...

  • Page 77
    ENERGIZER HOLDINGS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in millions, except per share) any participant other than a member of the board of directors (including officer directors). This plan is reflected in Other liabilities on the Consolidated Balance Sheets. The Company uses ...

  • Page 78
    ENERGIZER HOLDINGS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in millions, except per share) approximately 58,800 shares vested on November 5, 2013 based on the Company's compound annual growth rate for earnings per share as defined in the incentive plan (EPS CAGR) for the three year ...

  • Page 79
    ... most significant of the Company's pension obligations. Effective January 1, 2014, the pension benefit earned at that date by active participants under the legacy Energizer U.S. pension plans was frozen and future service benefits are no longer being accrued under these retirement programs. For the...

  • Page 80
    ENERGIZER HOLDINGS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in millions, except per share) The following tables present the benefit obligation, plan assets and funded status of the plans: September 30, Pension 2014 Change in Projected Benefit Obligation Benefit obligation at ...

  • Page 81
    ...assets in all of the Company's defined benefit pension plans. Investment policy for the U.S. plan includes a mandate to diversify assets and invest in a variety of asset classes to achieve that goal. The U.S. plan's assets are currently invested in several funds representing most standard equity and...

  • Page 82
    ENERGIZER HOLDINGS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in millions, except per share) The following table presents pension and postretirement expense: FOR THE YEARS ENDED SEPTEMBER 30, Pension Service cost Interest cost Expected return on plan assets Amortization of ...

  • Page 83
    ... this objective through diversification of the retirement plan assets. The goal is to earn a suitable return with an appropriate level of risk while maintaining adequate liquidity to distribute benefit payments. The diversified asset allocation includes equity positions, as well as a fixed income...

  • Page 84
    ENERGIZER HOLDINGS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in millions, except per share) (12) Defined Contribution Plan The Company sponsors a defined contribution plan, which extends participation eligibility to the vast majority of U.S. employees. Effective January 1, 2014, the ...

  • Page 85
    .... Our intention is to reinvest these earnings outside the U.S. indefinitely. The counterparties to long-term committed borrowings consist of a number of major financial institutions. The Company consistently monitors positions with, and credit ratings of, counterparties both internally and by...

  • Page 86
    ... stock, exclusive of a small number of shares related to the net settlement of certain stock awards for tax withholding purposes, for a total cost of approximately $94.4. All shares were purchased in the open market under the Company's current authorization from its Board of Directors. The Company...

  • Page 87
    ENERGIZER HOLDINGS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in millions, except per share) Commodity Price Risk The Company uses raw materials that are subject to price volatility. At times, the Company has used, and may in the future use, hedging instruments to reduce exposure to ...

  • Page 88
    ENERGIZER HOLDINGS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in millions, except per share) The following table provides estimated fair values as of September 30, 2014... in other current assets or other assets. All derivative liabilities are presented in other current liabilities or ...

  • Page 89
    ... Company has the following recognized financial assets and financial liabilities resulting from those transactions that meet the scope of the disclosure requirements as necessitated by applicable accounting guidance for balance sheet offsetting: Offsetting of derivative assets At September 30, 2014...

  • Page 90
    ..., like those of other companies engaged in the Household Products and Personal Care businesses, are subject to various federal, state, foreign and local laws and regulations intended to protect the public health and the environment. These regulations relate primarily to worker safety, air and water...

  • Page 91
    ... feminine care and sun care products. Legal Proceedings - The Company and its subsidiaries are parties to a number of legal proceedings in various jurisdictions arising out of the operations of the Company's businesses. Many of these legal matters are in preliminary stages and involve complex...

  • Page 92
    ENERGIZER HOLDINGS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in millions, except per share) (19) Accumulated Other Comprehensive (Loss)/Income Effective October 1, 2013, the FASB issued a new ASU on reporting amounts reclassified out of accumulated other comprehensive income. The ...

  • Page 93
    ..., sales promotion and allowances Accrued trade allowances Accrued salaries, vacations and incentive compensation Income taxes payable Returns reserve 2013 restructuring reserve Spin-off accrual Other Total other current liabilities Other Liabilities Pensions and other retirement benefits Deferred...

  • Page 94
    ...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...

  • Page 95
    ENERGIZER HOLDINGS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in millions, except per share) As announced on April 30, 2014, the Company is pursuing a plan to spin-off the Household Products business and thereby create two independent, publicly traded companies. As a result, the ...

  • Page 96
    ENERGIZER HOLDINGS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in millions, except per share) The following table provides segment information for the years ended or at September 30 for the periods presented: Net Sales Personal Care Household Products Total net sales 2014 $ 2,612.2 1,...

  • Page 97
    ... Company's total net sales for each of the three years presented. Supplemental product information is presented below for net sales for the years ended September 30: 2014 Net Sales Wet Shave Alkaline batteries Other batteries and lighting products Skin Care Feminine Care Infant Care Other personal...

  • Page 98
    ... are not necessarily indicative of the Company's results for the full year. Net earnings of the Company are impacted in the first quarter by the additional battery product sales volume associated with the December holiday season. Per share data is computed independently for each of the periods...

  • Page 99
    ENERGIZER HOLDINGS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in millions, except per share) (23) Guarantor and Non-Guarantor Financial Information On May 19, 2011, the Company issued a total of $600.0 of 4.70% senior notes due in May 2021 with interest payable semiannually beginning ...

  • Page 100
    ENERGIZER HOLDINGS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in millions, except per share) Consolidating Statements of Earnings....9 407.0 Net sales Cost of products sold Gross profit Selling, general and administrative expense Advertising and sales promotion expense Research and ...

  • Page 101
    Net sales Cost of products sold Gross profit ENERGIZER HOLDINGS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in millions, except per share) Consolidating Statements of Earnings (Condensed) Year Ended September 30, 2012 Parent NonCompany Guarantors Guarantors Eliminations Total (639.6) ...

  • Page 102
    ENERGIZER HOLDINGS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in millions, except per share) Consolidating Balance Sheets (Condensed) September 30, 2014 NonGuarantors Guarantors Eliminations Parent Company Assets Current Assets Cash and cash equivalents Trade receivables, net (a) ...

  • Page 103
    ENERGIZER HOLDINGS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in millions, except per share) Consolidating Balance Sheets (Condensed) September 30, 2013 Parent NonCompany Guarantors Guarantors Eliminations Assets Current Assets Cash and cash equivalents Trade receivables, net (a) ...

  • Page 104
    ...purchased Cash dividends paid Proceeds from issuance of common stock Excess tax benefits from share-based payments Intercompany receivable/payable, net Proceeds for equity contribution Payments for intercompany equity distributions Net cash from/(used by) financing activities Effect of exchange rate...

  • Page 105
    ... from issuance of common stock Excess tax benefits from share-based payments Cash dividends paid Intercompany receivable/payable, net Proceeds for equity contribution Payments for intercompany equity distributions Net cash (used by)/from financing activities Effect of exchange rate changes on cash...

  • Page 106
    ... of common stock Excess tax benefits from share-based payments Cash dividends paid Intercompany receivable/payable, net Proceeds for equity contribution Capital contribution Payments for intercompany equity distributions Net cash (used by)/from financing activities Effect of exchange rate changes on...

  • Page 107
    ..., Inc. Energizer Middle East and Africa Limited Energizer (South Africa) Ltd. Eveready Battery Company, Inc. Energizer Battery Manufacturing, Inc. Energizer Personal Care, LLC Energizer Receivables Funding Corporation Energizer Group, Inc. Energizer-Schick Taiwan Ltd. Playtex Products, LLC Playtex...

  • Page 108
    ... GmbH Wilkinson Sword GmbH AFIS, S.A. Energizer Hellas A.E. Energizer Hong Kong Limited Eveready Hong Kong Company Schick Asia Limited Sonca Products Limited Energizer Hungary Trading Ltd. RE'LEM Public Benefit Company EBC (India) Company Private Limited Energizer India Private Limited PT Energizer...

  • Page 109
    ...Overseas Investments Limited Energizer Trading Limited Energizer Holdings UK Co. Limited Energizer Investments UK Limited Energizer Group Limited Energizer Trust Limited Ever Ready Limited Wilkinson Sword Limited Personna International UK Limited Eveready de Venezuela, C.A. Energizer Group Venezuela...

  • Page 110
    ... and 333-194033) of Energizer Holdings, Inc. of our report dated November 18, 2014 relating to the financial statements and the effectiveness of internal control over financial reporting, which appears in the 2014 Annual Report to Shareholders, which is incorporated in this Annual Report on Form...

  • Page 111
    ... report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. 3 4 5 Date: November 18, 2014 /s/ Ward M. Klein Ward M. Klein Chief Executive Officer...

  • Page 112
    ..., whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. 3 4 5 Date: November 18, 2014 /s/ Daniel J. Sescleifer Daniel J. Sescleifer Executive Vice President and Chief Financial Officer 108

  • Page 113
    ...In connection with the Annual Report of Energizer Holdings, Inc. (the "Company") on Form 10-K for the year ended September 30, 2014 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Ward M. Klein, Chief Executive Officer of the Company, certify pursuant to 18...

  • Page 114
    ... with the Annual Report of Energizer Holdings, Inc. (the "Company") on Form 10-K for the year ended September 30, 2014 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Daniel J. Sescleifer, Executive Vice President and Chief Financial Officer of the...

  • Page 115
    ... PricewaterhouseCoopers LLP St. Louis, Missouri ANNUAL MEETING The Company's annual meeting of shareholders is scheduled for January 26, 2015, at 8:30 a.m. at Energizer's World Headquarters, 533 Maryville University Drive, St. Louis, MO 63141. STOCK SYMBOL ENR (NYSE) FINANCIAL COMMUNITY INFORMATION...

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    Energizer Holdings, Inc. 533 Maryville University Drive St. Louis, MO 63141 314.985.2000 www.energizerholdings.com ©2014 Energizer. Energizer, Energizer Bunny design, Eveready, Schick and other marks included in this annual report are trademarks of Energizer. Playtex and all other trademarks are ...