Rayovac 2010 Annual Report Download - page 59

Highlights of Consolidated Operating Results
We have presented the growing products portion of the Home and Garden Business as discontinued
operations. The board of directors of Old Spectrum committed to the shutdown of the growing products portion
of the Home and Garden Business in November 2008 and the shutdown was completed during the second quarter
of our Fiscal 2009. See Note 9, Discontinued Operations of Notes to Consolidated Financial Statements, included
in this Annual Report on Form 10-K for additional information regarding the shutdown of the growing products
portion of the Home and Garden Business. As a result, and unless specifically stated, all discussions regarding
Fiscal 2010 and Fiscal 2009 only reflect results from our continuing operations.
Year over year historical comparisons are influenced by the acquisition of Russell Hobbs, which is included
in our Fiscal 2010 Consolidated Financial Statements of Operations from June 16, 2010, the date of the Merger,
through the end of the period. The results of Russell Hobbs are not included in our Fiscal 2009 Consolidated
Financial Statements of Operations. See Note 16, Acquisition of Notes to Consolidated Financial Statements,
included in this Annual Report on Form 10-K for supplemental pro forma information providing additional year
over year comparisons of the impact of the acquisition.
Net Sales. Net sales for Fiscal 2010 increased to $2,567 million from $2,231 million in Fiscal 2009, a 15.1%
increase. The following table details the principal components of the change in net sales from Fiscal 2009 to
Fiscal 2010 (in millions):
Net Sales
Fiscal 2009 Net Sales ................................................ $2,231
Addition of small appliances ...................................... 238
Increase in consumer battery sales .................................. 33
Increase in electric shaving and grooming product sales ................. 27
Increase in home and garden control product sales ..................... 19
Increase in lighting product sales ................................... 6
Increase in electric personal care product sales ........................ 2
Decrease in pet supplies sales ...................................... (16)
Foreign currency impact, net ...................................... 27
Fiscal 2010 Net Sales ................................................ $2,567
Consolidated net sales by product line for Fiscal 2010 and 2009 are as follows (in millions):
Fiscal Year
2010 2009
Product line net sales
Consumer batteries .................................................. $ 866 $ 819
Pet supplies ........................................................ 561 574
Home and garden control products ...................................... 341 322
Electric shaving and grooming products .................................. 257 225
Small appliances .................................................... 238 —
Electric personal care products ......................................... 216 211
Portable lighting products ............................................. 88 80
Total net sales to external customers .................................... $2,567 $2,231
Global consumer battery sales during Fiscal 2010 increased $47 million, or 6%, compared to Fiscal 2009,
primarily driven by favorable foreign exchange impacts of $15 million coupled with increased sales in North
America and Latin America. The sales increase in North America was driven by increased volume with a major
customer and the increased sales in Latin America were a result of increased specialty battery sales, driven by the
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