Rayovac 2010 Annual Report Download - page 66

Download and view the complete annual report

Please find page 66 of the 2010 Rayovac 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 190

  • 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
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190

Adjusted EBITDA increase of $5 million. See “Restructuring and Related Charges” below, as well as Note 14,
Restructuring and Related Charges, to our Consolidated Financial Statements included in this Annual Report on
Form 10-K, for further detail on our Fiscal 2009 initiatives.
Segment assets as of September 30, 2010 decreased to $826 million from $867 million at September 30,
2009. Goodwill and intangible assets, which are directly a result of the revaluation impacts of fresh-start
reporting, decreased to $589 million at September 30, 2010 from $618 million at September 30, 2009. The
decrease is mainly due to amortization of definite lived intangible assets of $15 million and foreign exchange
impacts of $14 million.
Home and Garden Business
2010 2009
(in millions)
Net sales to external customers ..................................................... $341 $322
Segment profit .................................................................. $ 51 $ 42
Segment profit as a % of net sales .................................................. 14.9% 13.0%
Segment Adjusted EBITDA ....................................................... $ 67 $ 54
Assets as of September 30, ........................................................ $494 $504
Segment net sales to external customers of home and garden control products during Fiscal 2010 versus
Fiscal 2009 increased $19 million, or 6%, was driven by incentives to retailers and promotional campaigns
during the year in both lawn and garden control products and household control products.
Segment profitability in Fiscal 2010 increased to $51 million compared to $42 million in Fiscal 2009.
Segment profitability as a percentage of sales in Fiscal 2010 increased to 14.9% from 13.0% in Fiscal 2009. This
increase in segment profitability was attributable to savings from our global cost reduction initiatives announced
in Fiscal 2009. See “Restructuring and Related Charges” below, as well as Note 14, Restructuring and Related
Charges, to our Consolidated Financial Statements included in this Annual Report on Form 10-K for additional
information regarding our restructuring and related charges. The increase in profitability during Fiscal 2010 was
tempered by a $2 million increase in cost of goods sold due to the revaluation of inventory and increased
intangible asset amortization due to the revaluation of our customer relationships in accordance with SFAS 141
as was required when we adopted fresh-start reporting upon our emergence from Chapter 11 of the Bankruptcy
Code.
Segment Adjusted EBITDA in Fiscal 2010 was $67 million compared to $54 million in Fiscal 2009. The
increase in Adjusted EBITDA during Fiscal 2010 was mainly driven by expanded promotions at our top retailers
and strong sales growth.
Segment assets as of September 30, 2010 decreased to $494 million from $504 million at September 30,
2009. Goodwill and intangible assets, which are directly a result of the revaluation impacts of fresh-start
reporting, at September 30, 2010 decreased to $410 million from $419 million at September 30, 2009. The
decrease of $9 million is driven by amortization associated with definite lived intangible assets.
Small Appliances
2010 2009
(in millions)
Net sales to external customers ...................................................... $238 $—
Segment profit ................................................................... $ 13 $—
Segment profit as a % of net sales ................................................... 5.5% —
Segment Adjusted EBITDA ........................................................ $ 90 $ 81
Assets as of September 30, ......................................................... $863 $—
56