Rayovac 2014 Annual Report Download - page 58

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(a) It is the Company’s 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 and are
presented within Corporate / Unallocated Items.
(b) Included in other are costs associated with onboarding for a key executive.
(c) Included within depreciation and amortization is amortization of stock based compensation.
(d) The Pre-acquisition earnings of HHI do not include the TLM Taiwan business as stand alone financial data
is not available for the periods presented. The TLM Taiwan business is not deemed material to the
Company’s operating results.
Global Batteries & Appliances
Fiscal Year
2014 2013
Net sales to external customers ................................................... $2,231 $2,204
Segment profit ................................................................ $ 257 $ 238
Segment profit as a % of net sales ................................................ 11.5% 10.8%
Segment Adjusted EBITDA ..................................................... $ 327 $ 304
Assets as of September 30 ....................................................... $2,152 $2,361
Global Batteries and Appliances net sales to external customers are discussed in the “Product line net sales
by segment” discussion above.
Segment profit in Fiscal 2014 increased to $257 million from $238 million in Fiscal 2013. Segment
profitability as a percentage of net sales increased slightly to 11.5% in Fiscal 2014 versus 10.8% in Fiscal 2013.
The increase in segment profit and segment profitably as a percentage of net sales were primarily attributable to
increased sales and cost improvements, which were partially offset by unfavorable product mix and pricing
pressures in the U.S. and Europe.
Segment Adjusted EBITDA in Fiscal 2014 increased to $327 million from $304 million in Fiscal 2013. The
increase in segment Adjusted EBITDA was driven by the factors discussed above.
Segment assets at September 30, 2014 decreased to $2,152 million from $2,361 million at September 30,
2013. The decrease in segment assets of $209 million is primarily due to the transfer of $147 million in cash and
cash equivalents from our Global Batteries and Appliances segment to Corporate, coupled with a decrease of $49
million in intangible assets. Goodwill and intangible assets, which are substantially the result of the revaluation
impacts of fresh-start reporting during Fiscal 2009 and acquisitions, decreased to $1,272 million at September 30,
2014 from $1,322 million at September 30, 2013 due to amortization of intangible assets, coupled with negative
foreign exchange impacts.
Hardware & Home Improvement
Fiscal Year
2014 2013
Net sales to external customers ................................................... $1,166 $ 870
Segment profit ................................................................ $ 172 $ 89
Segment profit as a % of net sales ................................................ 14.8% 10.2%
Segment Adjusted EBITDA ..................................................... $ 209 $ 181
Assets as of September 30 ....................................................... $1,629 $1,736
Results of the HHI Business, reported in the Hardware & Home Improvement segment, relate to operations
subsequent to the acquisition date of December 17, 2012. A portion of the HHI Business, consisting of the TLM
Business, is included in the results of the Hardware and Home Improvement segment subsequent to its
acquisition on April 8, 2013.
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