Energizer 2015 Annual Report Download - page 11

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supply and to protect margins on anticipated sales volume.
Our Patents, Technology and Trademarks
We own thousands of Energizer and Eveready trademarks globally, which we consider of substantial importance and
which are used individually or in conjunction with other Energizer trademarks. Our ability to compete effectively in the
battery and portable lighting categories depends, in part, on our ability to maintain the proprietary nature of technology and
manufacturing processes through a combination of patent and trade secret protection, non-disclosure agreements and
licensing agreements. As of September 30, 2015, the Energizer trademark was registered in 177 countries, and the
Eveready trademark was registered in 155 countries, including, in each case, in the United States. The actual number of
Energizer and Eveready trademarks, including related designs, slogans and sub-brands, is currently over 3,600. We also
own a number of patents, patent applications and other technology which we believe are significant to our business. These
relate primarily to battery product and lighting device improvements and additional battery product features.
As of September 30, 2015, we owned approximately 537 unexpired United States patents which have a range of
expiration dates from October 2015 to April 2032, and approximately 61 United States pending patent applications. We
expect to routinely prepare additional patent applications for filing in the United States. We also actively pursue foreign
patent protection in a number of foreign countries. As of September 30, 2015, we owned (directly or beneficially)
approximately 962 foreign patents and approximately 123 patent applications pending in foreign countries.
Seasonality
Sales and operating profit for our business tend to be seasonal, with increased purchases of batteries by consumers
and increases in retailer inventories during our fiscal first quarter. In addition, natural disasters such as hurricanes can
create conditions that drive short-term increases in the need for portable power and lighting products and thereby increase
our battery and flashlight sales.
Employees
As of September 30, 2015, we have approximately 5,100 employees, including approximately 1,300 employees based
in the U.S. Approximately 30 employees are unionized, primarily at our Marietta, Ohio facility. Overall, we consider our
employee relations to be good.
Governmental Regulations and Environmental Matters
Our operations are subject to various federal, state, foreign and local laws and regulations intended to protect public
health and the environment.
Contamination has been identified at certain of our current and former facilities as well as third-party waste disposal sites,
and we are conducting investigation and remediation activities in relation to such properties. In connection with certain
sites, we have 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” under the Comprehensive
Environmental Response, Compensation and Liability Act, and that we will be required to share in the cost of cleanup.
The amount of our ultimate liability in connection with such facilities and sites will depend on many factors, including the
type and extent of contamination, the remediation methods and technology to be used, the extent to which other parties
may share liability and, in the case of waste disposal sites, the volume and toxicity of material contributed to the site. In
the fourth quarter of fiscal year 2015, we spent approximately $280,000 on environmental remedial matters. However, our
remediation costs could increase, including from the discovery of additional contamination or the imposition of further
cleanup obligations.
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 or the enforcement or interpretation of existing requirements, including any requirements related to global
climate change, or other factors. For example, 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 and Latin American countries with respect to battery recycling programs.