Energizer 2014 Annual Report Download - page 42

Download and view the complete annual report

Please find page 42 of the 2014 Energizer annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

ENERGIZER HOLDINGS, INC.
(Dollars in millions, except per share data)
execute the transaction. For the twelve months ended September 30, 2014, $44.7 of pre-tax charges were recorded in SG&A on
the Consolidated Statements of Earnings and Comprehensive Income. The Company will incur additional costs to execute the
transaction which will be significant and will have a material impact on our results of operations, balance sheet and cash flow.
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 less the sum of (a) costs of disposal and (b) a reasonable profit allowance for the selling effort of the acquiring
entity. For the twelve months ended September 30, 2014, the Company recorded $8.0 within Cost of products sold based upon
the write-up and subsequent sale of inventory acquired in the feminine care acquisition. Additionally, the Company also
recorded pre-tax acquisition/integration costs of $9.5 and $1.3 for the twelve months ended September 30, 2014 and September
30, 2013, respectively. These amounts are not reflected in the Personal Care segment, but rather presented as a separate line
item below segment profit, as it is a non-recurring item directly associated with the feminine care brands acquisition. Such
presentation reflects management’s view on how segment results are evaluated.
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 accrued under this retirement program. Additionally, and effective on
December 31, 2013, certain post-retirement medical and life insurance benefits were 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,
2013. The collective gains resulting from these actions, net of pension settlement charges, were reported on a separate line in
the Consolidated Statements of Earnings and Comprehensive Income. See Note 11 of the Notes to Consolidated Financial
Statements.
For the twelve months ended September 30, 2013, the Company recorded an expense of approximately $6 related to the
devaluation of its net monetary assets in Venezuela as a result of accounting for the translation of this affiliate under the
accounting rules governing a highly inflationary economy. The net monetary assets in Venezuela were valued using the revised
official exchange rate of 6.30 bolivars to one U.S. dollar at June 30, 2013. The devaluation impact of approximately $6 was
included in Other financing items, net on the Consolidated Statements of Earnings and Comprehensive Income, and was not
considered in the evaluation of segment profit. However, normal operating results in Venezuela, such as sales, gross profit and
segment profit, have and may further be negatively impacted by translating at less favorable exchange rates and by the impact
of unfavorable economic conditions in the country. These operating results remain part of the reported segment totals. The
negative segment impacts of the Venezuela devaluation and the unfavorable economic impact on operating results are discussed
separately when considered relevant to understanding year-over-year comparatives. See Note 6 of the Notes to Consolidated
Financial Statements.
For the fiscal year ended September 30, 2012, our prior Household Products restructuring activities generated pre-tax income of
$6.8 due to the gain on the sale of our former battery manufacturing facility in Switzerland, which was shut down in fiscal
2011. This gain was approximately $13. This gain was partially offset by additional restructuring costs of $6.0. These costs,
net of the gain on the sale of the former manufacturing facility in fiscal 2012, are included as a separate line item on the
Consolidated Statements of Earnings and Comprehensive Income. See Note 5 of the Notes to Consolidated Financial
Statements.
PERSONAL CARE
Net Sales - Personal Care Products
For the years ended September 30,
2014 % Chg 2013 % Chg 2012
Net sales - prior year $ 2,448.9 $ 2,479.5 $ 2,449.7
Organic (35.4) (1.4)% 4.1 0.2 % 15.0
Impact of currency (31.4) (1.3)% (34.7) (1.4)% (31.4)
Incremental impact of acquisition 230.1 9.4 % — — % 46.2
Net sales - current year $ 2,612.2 6.7 % $ 2,448.9 (1.2)% $ 2,479.5
38