Energizer 2014 Annual Report Download - page 11

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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 also market Litter Genie, a 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 under the Energizer and Eveready brands.
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.
The battery category is highly competitive as brands compete for consumer acceptance and retail shelf space. 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 Project
In November 2012, the Company’s Board of Directors authorized an enterprise-wide restructuring.
As previously disclosed, the primary objectives of the 2013 restructuring project included reduction in workforce,
consolidation of G&A functional support across the organization, reduced overhead spending, creation 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 project. As a result of the expanded scope of the Company's restructuring efforts, the project is expected to
generate additional savings and the Company expects to incur additional charges in order to execute the planned initiatives.
Through September 30, 2014, the Company estimates that project-to-date savings are approximately $255 million. The
Company expects to achieve $300 million of savings prior to the anticipated closing of the planned spin-off transaction on June
30, 2015. Estimated total project savings have been increased to $330 million.
Project-to-date restructuring and restructuring related costs have totaled approximately $260 million through September 30,
2014. The Company estimates total pre-tax restructuring related costs (including the original and expanded scope) needed to
execute this program will be near $350 million.
Proposed Spin-off Transaction
On April 28, 2014, the Board of Directors authorized management to pursue a plan to spin-off the Company's Household
Products business and thereby create two independent, publicly traded companies. The separation is planned as a tax-free spin-
off to the Company's shareholders and is expected to be completed by July 1, 2015. The proposed spin-off is subject to further
due diligence as appropriate and customary conditions, including receipt of regulatory approvals, an opinion of counsel
regarding the tax-free nature of the proposed spin-off transaction, the effectiveness of a Form 10 filing with the Securities and
Exchange Commission (SEC), and final approval by the Company's Board of Directors. The Company may, at any time and
for any reason until the proposed spin-off is complete, abandon the spin-off or modify or change its terms. The Company can
make no assurance that any spin-off transaction will ultimately occur, or if one does occur, the terms or timing of a transaction.
We expect to file a Form 10 registration statement with the SEC in early calendar 2015.
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