Rayovac 2010 Annual Report Download - page 63

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Fiscal 2009
Global
Batteries &
Personal Care
Global Pet
Supplies
Home and
Garden
Business
Small
Appliances
Corporate /
Unallocated
Items(a)
Consolidated
SB Holdings
(in millions)
Net Income (loss) ................ $126 $ 41 $ (52) $— $ 828 $ 943
Loss from discontinued
operations, net of tax ....... — — 87 — — 87
Income tax expense .......... — — — — 74 74
Interest expense ............. — — — — 190 190
Pre-acquisition earnings ....... — — — 81 — 81
Restructuring and related
charges .................. 21 6 6 — 13 46
Reorganization items ......... — — — — (1,139) (1,139)
Intangibles impairment ....... 15 19 — — — 34
Fresh-start inventory and other
fair value adjustment ....... 10 5 1 — 1 17
Accelerated depreciation and
amortization(c) ............ (3) — (1) — — (4)
Brazilian IPI credit/other ...... (5) — — — — (5)
Adjusted EBIT .................. $164 $ 71 $ 41 $ 81 $ (33) $ 324
Depreciation and
amortization .............. 29 22 13 — 3 67
Adjusted EBITDA ............... $193 $ 93 $ 54 $ 81 $ (30) $ 391
(a) It is our policy to record Income tax expense (benefit) and interest expense on a consolidated basis.
Accordingly, such amounts are not reflected in the operating results of the operating segments.
(b) Adjustment reflects the following: (i) $61 million write-off of unamortized deferred financing fees and
discounts associated with our restructured capital structure, refinanced on June 16, 2010; (ii) $4 million
related to pre-payment premiums associated with the paydown of our old asset based revolving credit
facility and supplemental loan extinguished on June 16, 2010; and (iii) $17 million related to the termination
of interest swaps and commitment fees.
(c) Adjustment reflects restricted stock amortization and accelerated depreciation associated with certain
restructuring initiatives. Inasmuch as this amount is included within Restructuring and related charges, this
adjustment negates the impact of reflecting the add-back of depreciation and amortization.
Global Batteries & Personal Care
2010 2009
(in millions)
Net sales to external customers ................................................... $1,428 $1,335
Segment profit ................................................................ $ 153 $ 165
Segment profit as a % of net sales ................................................ 10.7% 12.4%
Segment Adjusted EBITDA ..................................................... $ 206 $ 193
Assets as of September 30, ...................................................... $1,629 $1,608
Segment net sales to external customers in Fiscal 2010 increased $93 million to $1,428 million from $1,335
million during Fiscal 2009, representing a 7% increase. Favorable foreign currency exchange translation
impacted net sales in Fiscal 2010 by approximately $24 million in comparison to Fiscal 2009. Consumer battery
sales for Fiscal 2010 increased to $866 million when compared to Fiscal 2009 sales of $819 million, primarily
due to increased specialty battery sales of $26 million and increased alkaline battery sales of $6 million, coupled
with favorable foreign exchange translation of $15 million. The $26 million increase in specialty battery sales is
53