Rayovac 2010 Annual Report Download - page 76

recorded during the fourth quarter of our fiscal year. The slight increases in Europe and Latin America are a
result of successful new product launches. Electric personal care sales decreased by $20 million, a decrease of
9% over Fiscal 2008. Unfavorable foreign exchange translation impacted net sales by approximately $24 million.
Excluding unfavorable foreign exchange, we experienced an increase of $4 million within electric personal care
products. Europe and Latin America increased $8 million and $3 million, respectively, while North American
electric personal care product sales decreased $8 million. Similar to our electric shaving and grooming products
sales, the decreased sales of electric personal care products within North America was a result of delayed holiday
inventory stocking at certain of our customers which in turn has resulted in a delay of our product shipments that
historically would have been recorded during the fourth quarter of our fiscal year. The increased sales within
Europe and Latin America were due to strong growth in our women’s hair care products. Net sales of portable
lighting products for Fiscal 2009 decreased to $80 million as compared to sales of $100 million for Fiscal 2008.
The portable lighting product sales decrease was driven by unfavorable foreign exchange impact of $5 million,
coupled with declines in sales in North America, Europe and Latin America of $9 million, $3 million and $2
million, respectively. The decrease across all regions was driven by softness in the portable lighting products
category as a result of the global economic slowdown.
Segment profitability in Fiscal 2009 increased slightly to $165 million from $163 million in Fiscal 2008.
Segment profitability as a percentage of net sales increased to 12.4% in Fiscal 2009 as compared with 10.9% in
Fiscal 2008. The increase in segment profitability during Fiscal 2009 was primarily the result of cost savings
from the Ningbo Exit Plan and our global realignment announced in January 2007. See “Restructuring and
Related Charges” below, as well as Note 15, Restructuring and Related Charges, of Notes to Consolidated
Financial Statements included in this Annual Report on Form 10-K for additional information regarding our
restructuring and related charges. Tempering the increase in segment profitability were decreased sales during
Fiscal 2009 as compared to Fiscal 2008 which was primarily driven by unfavorable foreign exchange and
softness in certain product categories due to the global economic slowdown. In addition, as a result of our
adoption of fresh-start reporting upon emergence from Chapter 11 of the Bankruptcy Code, in accordance with
SFAS 141, inventory balances were revalued as of August 30, 2009 resulting in an increase in such Global
Batteries & Personal Care inventory balances of $27 million. As a result of the inventory revaluation, Global
Batteries & Personal Care recognized $10 million in additional cost of goods sold in Fiscal 2009. The remaining
$17 million of the inventory revaluation was recorded during the first quarter of Fiscal 2010. See “Net Sales”
above for further discussion on our Fiscal 2009 sales.
Segment assets at September 30, 2009 increased to $1,608 million from $1,183 million at September 30,
2008. The increase is primarily a result of the revaluation impacts of fresh-start reporting. See Note 2, Voluntary
Reorganization Under Chapter 11, of Notes to Consolidated Financial Statements included in this Annual Report
on Form 10-K for additional information related to fresh-start reporting. Partially offsetting this increase in assets
was a non-cash impairment charge of certain intangible assets in Fiscal 2009 of $15 million. See Note 3(i),
Significant Accounting Policies and Practices—Intangible Assets, of Notes to Consolidated Financial Statements
included in this Annual Report on Form 10-K for additional information regarding this impairment charge and
the amount attributable to Global Batteries & Personal Care. Goodwill and intangible assets at September 30,
2009 totaled approximately $909 million and are directly a result of the revaluation impacts of fresh-start
reporting. Goodwill and intangible assets at September 30, 2008 total approximately $416 million and primarily
relate to the ROV Ltd., VARTA AG, Remington Products Company, L.L.C. (“Remington Products”) and
Microlite S.A. (“Microlite”) acquisitions.
Global Pet Supplies
2009 2008
(in millions)
Net sales to external customers ..................................................... $574 $599
Segment profit .................................................................. $ 65 $ 69
Segment profit as a % of net sales .................................................. 11.3% 11.5%
Assets as of September 30, ........................................................ $867 $700
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