Rayovac 2014 Annual Report Download - page 59

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Hardware and home improvement net sales to external customers are discussed in the “Product line net sales
by segment” discussion above.
Segment profit increased $83 million to $172 million in Fiscal 2014 compared to $89 million Fiscal 2013.
Segment profitability as a percentage of net sales was 14.8% in Fiscal 2014 and 10.2% in Fiscal 2013. The
increase in segment profit was primarily driven by the inclusion of the HHI Business for the entire Fiscal 2014.
Furthermore, the increase in segment profit and segment profit as a percentage of net sales was driven by the
increase in sales and cost improvements, coupled with the non-recurrence of a $31 million increase to cost of
goods sold in Fiscal 2013 which related to the sale of inventory revalued in connection with the acquisition.
Segment Adjusted EBITDA was $209 million in Fiscal 2014 compared to $181 million in Fiscal 2013. The
increase in Segment Adjusted EBITDA were driven by the increased sales, cost improvements and other factors
discussed above.
Segment assets at September 30, 2014 decreased to $1,629 million from $1,736 million at September 30,
2013. The decrease of $107 million is primarily due to the transfer of $35 million in cash and cash equivalents
from our Hardware and Home Improvement segment to Corporate, coupled with a decrease in intangible assets
and property, plant and equipment of $21 million and $14 million, respectively, principally due to depreciation
and amortization recognized in Fiscal 2014.
Global Pet Supplies
Fiscal Year
2014 2013
Net sales to external customers ..................................................... $600 $622
Segment profit .................................................................. $ 82 $ 91
Segment profit as a % of net sales .................................................. 13.7% 14.6%
Segment Adjusted EBITDA ....................................................... $113 $120
Assets as of September 30 ......................................................... $890 $949
Global Pet Supply net sales to external customers are discussed in the “Product line net sales by segment”
discussion above.
Segment profit decreased $9 million to $82 million in Fiscal 2014 compared to $91 million in Fiscal 2013
and segment profitability as a percentage of net sales in Fiscal 2014 decreased to 13.7%, compared to 14.6% in
Fiscal 2013. The decrease in segment profit and profitability as a percentage of net sales were primarily driven
by decreased sales and unfavorable product mix in Fiscal 2014 as compared to Fiscal 2013, which was partially
offset by cost improvements in manufacturing and sourcing.
Segment Adjusted EBITDA in Fiscal 2014 decreased $7 million to $113 million from $120 million in Fiscal
2013. The decrease in Adjusted EBITDA was driven by the factors discussed above for segment profit.
Segment assets at September 30, 2014 decreased to $890 million from $949 million at September 30, 2013.
The decrease in segment assets was primarily driven by a $13 million transfer of cash and cash equivalents from
our Global Pet Supplies segment to Corporate, coupled with a $32 million decrease in goodwill and intangible
assets. Goodwill and intangible assets, which are substantially the result of the revaluation impacts of fresh-start
reporting during Fiscal 2009 and acquisitions, decreased to $669 million at September 30, 2014 from $701
million at September 30, 2013 due to amortization of intangible assets coupled with negative foreign exchange
impacts.
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