Rayovac 2015 Annual Report Download - page 74

Liquidity and Capital Resources
The following is a summary of the Company’s cash flows for the years ended September 30, 2015, 2014
and 2013:
Spectrum Holdings, Inc. SB/RH Holdings, LLC
2015 2014 2013 2015 2014 2013
(in millions)
Net cash provided by operating activities . . . $ 444.3 $ 432.7 $ 256.5 $ 441.8 $ 434.7 $ 258.2
Net cash used by investing activities ...... $(1,279.7) $ (93.5) $(1,483.0) $(1,279.7) $ (93.5) $(1,476.7)
Net cash provided (used) by financing
activities .......................... $ 918.4 $(343.5) $ 1,280.2 $ 922.6 $(338.2) $ 1,263.4
Effect of exchange rate changes on cash and
cash equivalents .................... $ (29.7) $ (8.3) $ (4.5) $ (29.7) $ (8.3) $ (4.5)
Spectrum Brands Holdings, Inc.
Net cash provided by operating activities
The $11.6 million increase in cash provided by operating activities for the year ended September 30, 2015
was primarily due to: (i) cash generated from higher Adjusted EBITDA of $76.3 million; (ii) decrease in cash
paid for taxes of $26.3 million; and (iii) decrease in cash paid for restructuring and related charges of
$8.1 million; which was partially offset by (i) increased cash paid for acquisition and integration costs of
$9.8 million from increased acquisition activity; (ii) increased cash paid for interest of $71.6 million due to
charges associated with financing the AAG acquisition and increased debt; and (iii) $17.7 million of incremental
use of cash from working capital driven by higher inventory and other working capital items partially offset by
lower accounts receivable and higher accounts payable and other working capital accruals.
The $176.2 million increase in cash provided by operating activities for the year ended September 30, 2014
was primarily due to: (i) cash generated from higher Adjusted EBITDA of $79.3 million, excluding pre-
acquisition earnings of the HHI Business; (ii) $67.2 million of additional generation of cash from working capital
and other items driven by lower accounts receivable and inventory, partially offset by lower accounts payable
and other working capital items; (iii) lower cash payments for interest of $46.4 million due to refinancing; and
(iv) lower cash acquisition, integration and restructuring related costs of $14.0 million; which was partially offset
by higher cash payments for income taxes of $30.7 million.
Net cash used by investing activities
The $1,186.2 million increase in cash used by investing activities during the year ended September 30, 2015
was primarily attributable to the cash used for acquisitions of $1,191.1 million during the year ended September 30,
2015, which related to the $898.4 million, net cash acquired, for the AAG acquisition; $147.8 million, net cash
acquired, for the Salix acquisition; $115.7 million, net cash acquired, for the European IAMS and Eukanuba
acquisition and $29.2 million, net cash acquired, for the Tell acquisition, compared to the $27.6 million, net cash
acquired, used for the Liquid Fence acquisition during the year ended September 30, 2014.
The $1,389.5 million decrease in cash used by investing activities during the year ended September 30, 2014
was primarily driven by a decrease in cash used for acquisitions of $1,372.2 million, which related to the
$1,351.0 million, net of cash acquired, for the HHI Business acquisition and the $48.8 million, net of cash
acquired, for the Shaser acquisition during the year ended September 30, 2013, compared to the $27.6 million,
net of cash acquired, used for the Liquid Fence acquisition during the year ended September 30, 2014.
Net cash provided (used) by financing activities
Net cash provided by financing activities for the year ended September 30, 2015 consist of (i) refinancing of
the then-existing senior term facilities resulting in $2,036.5 million proceeds for the issuance of the new Term
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