Energizer 2014 Annual Report Download - page 95

Download and view the complete annual report

Please find page 95 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.
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 Company is incurring incremental costs to evaluate, plan
and execute the transaction. For the twelve months ended September 30, 2014, $44.7 of pre-tax spin-off costs were recorded in
SG&A on the Consolidated Statements of Earnings and Comprehensive Income. See Note 3 of the Notes to Consolidated
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 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 brands acquisition. For twelve months ended
September 30, 2014, the Company also recorded pre-tax acquisition/integration costs of $9.5. 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 acquisition. Such presentation reflects management’s view on how segment results
are evaluated.
In the first quarter of fiscal 2013, the Company approved and communicated changes to its U.S. pension plan, which is the most
significant of the Company's pension obligations. 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 these retirement programs. In July 2013, the Company finalized and communicated a decision to discontinue certain
post-retirement medical and life insurance benefits. The communication was provided to all eligible participants of the
impacted plans and advised that the Company would discontinue all benefits associated with the impacted plans effective
December 31, 2013. As a result of these actions, for the twelve months ended September 30, 2013, the Company recorded a
non-cash, pre-tax curtailment gain of $107.6 as a result of this plan change. The collective gain resulting from these actions
was 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 Venezuelan Bolivar Fuerte 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 twelve months ended September 30, 2012, our prior Household Products restructuring activities generated pre-tax
income of $6.8, which was driven by the 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 $6.0 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. See Note 5
of the Notes to Consolidated Financial Statements.
Corporate assets shown in the following table include all cash and cash equivalents, financial instruments and deferred tax
assets that are managed outside of operating segments.
91