Energizer 2014 Annual Report Download - page 13

We rely on trademark, trade secret, patent and copyright laws to protect our intellectual property rights. We cannot be sure
that these intellectual property rights will be effectively utilized or, if necessary, successfully asserted. There is a risk that we
will not be able to obtain and perfect our own intellectual property rights, or, where appropriate, license from others intellectual
property rights.
Seasonality
Sales and operating profit for Household Products tends to be seasonal, with increased purchases of batteries by consumers
during the December holiday season, and increases in retailer inventories during autumn. In addition, natural disasters such as
hurricanes can create conditions that drive increased needs for portable power and spike battery and flashlight sales.
Sales of women's wet shave products are moderately seasonal, with increased consumer demand in the spring and summer
months. Customer orders for sun care products are highly seasonal, which has historically resulted in higher sun care sales to
retailers during the late winter through mid-summer months.
Competition
The Personal Care and Household Products businesses are highly competitive, both in the United States and on a global
basis, as large manufacturers with global operations compete for consumer acceptance and, increasingly, limited retail shelf
space. Competition is based upon brand perceptions, product performance, customer service and price.
The global shaving products category is comprised of wet shave blades and razors, electric shavers, shave preparations
(gels, lotions and creams). The wet shave segment of that business is further segmented between razor systems and disposable
products. Geographically, North America, Western Europe, Australia and Japan represent relatively developed and stable
markets. Our principal competitors in the wet shave business worldwide are The Procter & Gamble Company, which owns the
Gillette brand and is the leading company in the global wet shave segment, and Bic Group, which competes primarily in the
disposable segment.
The markets for skin care, feminine care and infant care products are also highly competitive, characterized by the frequent
introduction of new products, accompanied by major advertising and promotional programs. Our competitors in these product
lines consist of a large number of domestic and foreign companies, including The Procter & Gamble Company and Kimberly-
Clark 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 by large retailers also has an impact on the market in some parts of the world, particularly in
Europe.
Governmental Regulation and Environmental Matters
Energizer's operations are subject to various federal, state, foreign and local laws and regulations intended to protect the
public health and the environment.
Energizer has received notices from the U.S. Environmental Protection Agency, state agencies, and/or private parties
seeking contribution, that we have been identified as a “potentially responsible party” (PRP) under the Comprehensive
Environmental Response, Compensation and Liability Act, and may be required to share in the cost of cleanup with respect to a
number of federal “Superfund” sites. We may also be required to share in the cost of cleanup with respect to state-designated
sites, and certain international locations, as well as any of our own properties.
The amount of the Company's ultimate liability in connection with those sites may depend on many factors, including the
volume and toxicity of material contributed to the site, the number of other PRPs and their financial viability, and the
remediation methods and technology to be used. Total environmental capital expenditures and operating expenses are not
expected to have a material effect on our total capital and operating expenditures, consolidated earnings or competitive
position. However, current environmental spending estimates could be modified as a result of changes in our plans or our
understanding of the underlying facts, changes in legal requirements, including any requirements related to global climate
change, or other factors.
Many European countries, as well as the European Union, have been very active in adopting and enforcing environmental
regulations. In addition, certain regulations have been enacted or are being considered in North America and certain European
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