Rayovac 2012 Annual Report Download - page 57

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Fiscal 2011
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) ............... $180 $ 50 $ 62 $(367) $ (75)
Income tax expense ...................... — — — 92 92
Interest expense ........................ — — — 184 184
Write-off unamortized discounts and financing
fees(b) .............................. — — — 24 24
Restructuring and related charges ........... 6 17 2 4 29
Acquisition and integration related charges . . . 31 — — 6 37
Intangible asset impairment ............... 23 8 1 — 32
Accelerated depreciation and
amortization(c) ....................... (1) — — — (1)
Adjusted EBIT ............................. $239 $ 75 $ 65 $ (57) $322
Depreciation and amortization(d) ........... 68 24 12 31 135
Adjusted EBITDA .......................... $307 $ 99 $ 77 $ (26) $457
(a) It is our policy to record income tax expense 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 write-off of unamortized deferred financing fees and discounts related to the
refinancing of our Term loan facility.
(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.
(d) Included within depreciation and amortization is amortization of unearned restricted stock compensation.
Global Batteries & Appliances
2012 2011
(in millions)
Net sales to external customers ................................................. $2,250 $2,254
Segment profit .............................................................. $ 244 $ 239
Segment profit as a % of net sales .............................................. 10.8% 10.6%
Segment Adjusted EBITDA ................................................... $ 307 $ 307
Assets as of September 30, .................................................... $2,243 $2,275
Segment net sales to external customers in Fiscal 2012 decreased $4 million to $2,250 million from $2,254
million during Fiscal 2011, driven by unfavorable foreign currency exchange translation which impacted Fiscal
2012 net sales by approximately $65 million. Excluding foreign exchange, segment sales increased by $61
million, led by increased consumer batteries sales of $31 million. The growth of global consumer battery sales on
a constant currency basis was driven by new customer listings as well as increased shelf space at existing
customers, coupled with price increases, primarily in Latin America, and geographic expansion. Excluding
foreign exchange, electric shaving and grooming sales increased $12 million, driven by an increase of $14
million due to successful new product launches in Europe and $4 million of distribution gains with existing
customers in Latin America, tempered by a $6 million decrease in North American sales. Electric personal care
product sales increased $9 million, excluding foreign exchange impacts, led by North American and Latin
American sales increases of $11 million and $7 million, respectively, resulting from successful new product
introductions and distribution gains in Latin America. The gains in electric personal care product sales were
tempered by an $8 million decrease in European sales driven by declining women’s hair straightener sales which
is attributed to a change in fashion trends combined with decreased promotions in the fourth quarter of Fiscal
47