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ENERGIZER HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share)
The following table summarizes the 2013 restructuring project activity for the twelve months ended September 30, 2014.
Utilized
October 1,
2013
Charge to
Income
Other
(a) Cash
Non-
Cash
September 30,
2014
Severance & Termination Related Costs $ 16.3 $ 32.6 $ (0.7)$ (26.1) $ — $ 22.1
Accelerated Depreciation — 4.7 — — (4.7)—
Other Costs 4.3 52.9 (0.1)(50.1)(2.7) 4.3
Net loss on asset sale — 2.4 — 4.9 (7.3)—
Total $ 20.6 $ 92.6 $ (0.8)$ (71.3)$ (14.7) $ 26.4
(a) Includes the impact of currency translation.
2011 Household Products Restructuring
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 partially offset by $6 of additional restructuring costs in fiscal 2012. The net
amount is included as a separate line item on the Consolidated Statements of Earnings and Comprehensive Income.
(6) Venezuela
Effective January 1, 2010 and continuing through September 30, 2014, the financial statements for our Venezuela subsidiary
are consolidated under the rules governing the translation of financial information in a highly inflationary economy based on
the use of the blended National Consumer Price Index in Venezuela. Under GAAP, an economy is considered highly
inflationary if the cumulative inflation rate for a three year period meets or exceeds 100 percent. If a subsidiary is considered
to be in a highly inflationary economy, the financial statements of the subsidiary must be re-measured into our reporting
currency (U.S. dollar) and future exchange gains and losses from the re-measurement of monetary assets and liabilities are
reflected in current earnings, rather than exclusively in the equity section of the balance sheet, until such times as the economy
is no longer considered highly inflationary.
On February 13, 2013, the Venezuela government devalued the Bolivar Fuerte relative to the U.S. dollar. The revised official
exchange rate moved from 4.30 bolivars per U.S. dollar to an exchange rate of 6.30 bolivars per U.S. dollar. The Central
Government also suspended the alternate currency market administered by the central bank known as SITME that made U.S.
dollars available at a rate higher than the previous official rate, generally in the range of 5.50 bolivars per U.S. dollar. As a
result of the devaluation noted above and the elimination of the SITME market, the Company revalued its net monetary assets
at March 31, 2013 using the revised official rate of 6.30 bolivars per U.S. dollar. Thus, the Company recorded a devaluation
charge of approximately $6 during the second fiscal quarter of fiscal 2013, due primarily to the devaluation of local currency
cash balances. This charge was included in Other financing items, net on the Consolidated Statements of Earnings and
Comprehensive Income. The official exchange rate is determined and administered by the Cadivi/Cencoex System (the
National Center for International Trade that administers the authorization for the acquisition and the actual payment of foreign
currency conducted for essential imports).
On January 24, 2014, the Venezuelan government issued Exchange Agreement No. 25, which stated the rate of exchange established
in the most recent SICAD I auction will be used for payments related to international investments, royalties and the use and
exploitation of patents, trademarks, licenses, franchises and technology.
On March 10, 2014, the Venezuelan government announced the inception of the SICAD II program as an additional mechanism
to purchase foreign currency. The SICAD II program does not supersede the Cadivi/Cencoex for essential imports (currently at
6.30 bolivars per U.S. dollar) nor SICAD I (equal to 12.00 bolivars per U.S. dollar as of September 30, 2014).
Thus far, the Company has not been invited to participate in the SICAD I auction process nor chosen to utilize the SICAD II
auction system. Whether we will be able to access or participate in either SICAD system in the foreseeable future or what
volume of currency exchange we would be able to transact through these alternative mechanisms is unknown at the present
time. We continue to monitor these situations, including the impact restrictions may have on our future business operations. At
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