Rayovac 2012 Annual Report Download - page 56

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believes that non-GAAP measurements are useful supplemental information, such adjusted results are not
intended to replace our GAAP financial results.
Adjusted EBITDA was $485 million for Fiscal 2012 compared with $457 million for Fiscal 2011.
Segment Results. As discussed under “Business Overview” above we manage our business in three
reportable segments: (i) Global Batteries & Appliances, (ii) Global Pet Supplies; and (iii) Home and Garden
Business.
Operating segment profits do not include restructuring and related charges, acquisition and integration
related charges, interest expense, interest income, impairment charges, reorganization items and income tax
expense. Expenses associated with global operations, consisting of research and development, manufacturing
management, global purchasing, quality operations and inbound supply chain are included in the determination
of operating segment profits. Expenses associated with certain general and administrative functions have been
excluded in the determination of reportable segment profits and are included in corporate expenses. These
corporate expenses primarily include general and administrative expenses and the costs of global long-term
incentive compensation plans which are evaluated on a consolidated basis and not allocated to our operating
segments.
All depreciation and amortization included in income from operations is related to operating segments or
corporate expense. Costs are allocated to operating segments or corporate expense according to the function of
each cost center. All capital expenditures are related to operating segments. Variable allocations of assets are not
made for segment reporting.
Global strategic initiatives and financial objectives for each reportable segment are determined at the
corporate level. Each reportable segment is responsible for implementing defined strategic initiatives and
achieving certain financial objectives and has a general manager responsible for the sales and marketing
initiatives and financial results for product lines within that segment. Financial information pertaining to our
reportable segments is contained in Note 11, Segment Information, of Notes to Consolidated Financial
Statements included in this Annual Report on Form 10-K.
Below are reconciliations of GAAP Net Income (Loss) from Continuing Operations to Adjusted EBIT and
Adjusted EBITDA by segment and for Consolidated Spectrum Brands for Fiscal 2012 and Fiscal 2011:
Fiscal 2012
Global
Batteries &
Appliances
Global Pet
Supplies
Home and
Garden
Business
Corporate /
Unallocated
Items(a)
Consolidated
SB Holdings
(in millions)
Net income (loss), as adjusted(a) ............... $221 $ 70 $ 71 $(313) $ 49
Income tax expense ...................... — — — 60 60
Interest expense ........................ — — — 192 192
Acquisition and integration related charges . . . 15 5 2 9 31
Restructuring and related charges ........... 7 10 1 1 19
Adjusted EBIT ............................. $243 $ 85 $ 74 $ (51) $351
Depreciation and amortization(d) ........... 64 28 13 29 134
Adjusted EBITDA .......................... $307 $113 $ 87 $ (22) $485
46