Rayovac 2014 Annual Report Download - page 57

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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.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) is a metric
used by management and frequently used by the financial community which provides insight into an
organization’s operating trends and facilitates comparisons between peer companies, since interest, taxes,
depreciation and amortization can differ greatly between organizations as a result of differing capital structures
and tax strategies. Adjusted EBITDA can also be a useful measure of a company’s ability to service debt and is
one of the measures used for determining our debt covenant compliance. Adjusted EBITDA excludes certain
items that are unusual in nature or not comparable from period to period. While we believe that Adjusted
EBITDA is useful supplemental information, such adjusted results are not intended to replace our U.S. Generally
Accepted Accounting Principles’ (“GAAP”) financial results and should be read in conjunction with those
GAAP results.
Below are reconciliations of GAAP Net income, as adjusted, to Adjusted Earnings Before Interest and
Taxes (“Adjusted EBIT”) and to Adjusted EBITDA for each segment and for Consolidated SB Holdings for
Fiscal 2014 and Fiscal 2013:
Fiscal 2014
Global
Batteries &
Appliances
Global Pet
Supplies
Home and
Garden
Hardware &
Home
Improvement
Corporate /
Unallocated
Items(a)
Consolidated
SB Holdings
(in millions)
Net income (loss), as adjusted(a) ....... $235 $ 79 $ 88 $157 $(344) $215
Income tax expense .............. — — — — 59 59
Interest expense ................. — — — — 202 202
Acquisition and integration related
charges ...................... 8 — 1 4 7 20
Restructuring and related charges . . . 11 3 — 8 1 23
Other(b) ....................... — — — — 1 1
Adjusted EBIT ...................... $254 $ 82 $ 89 $169 $ (74) $520
Depreciation and amortization(c) . . . 73 31 13 40 47 204
Adjusted EBITDA ................... $327 $113 $102 $209 $ (27) $724
Fiscal 2013
Global
Batteries &
Appliances
Global Pet
Supplies
Home and
Garden
Hardware &
Home
Improvement
Corporate /
Unallocated
Items(a)
Consolidated
SB Holdings
(in millions)
Net income (loss), as adjusted(a) ......... $214 $ 77 $ 78 $ 75 $(499) $ (55)
Pre-acquisition earnings of HHI(d) . . . — — — 30 — 30
Income tax expense ............... — — — — 27 27
Interest expense .................. — — — — 376 376
Acquisition and integration related
charges ....................... 6 2 — 7 33 48
Restructuring and related charges . . . . 15 11 1 6 1 34
HHI Business inventory fair value
adjustment .................... — — — 31 — 31
Venezuela devaluation ............. 2 — — — — 2
Adjusted EBIT ....................... $237 $ 90 $ 79 $149 $ (62) $493
Depreciation and amortization(c) . . . . 67 30 11 32 44 184
Adjusted EBITDA .................... $304 $120 $ 90 $181 $ (18) $677
45