Rayovac 2015 Annual Report Download - page 68

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Segment Financial Data
The Company manages its business in five vertically integrated, product-focused reporting segments:
(i) Global Batteries & Appliances, (ii) Global Pet Supplies, (iii) Home and Garden, (iv) Hardware & Home
Improvement and (v) Global Auto Care. See Note 18, “Segment Information” of Notes to the Consolidated
Financial Statements, included elsewhere in this Annual Report for more information pertaining to segments
Segment profit does not include corporate expenses, acquisition and integration related charges,
restructuring and related charges, impairment charges, interest expense, income tax expense, and other non-
operating expenses. Corporate expenses primarily include general and administrative expenses and the costs of
stock compensation plans which are evaluated on a consolidated basis and not allocated to the segments.
EBITDA and Adjusted EBITDA. The Company defines EBITDA as net income (loss) before interest
expense, income tax expense (benefit), and depreciation and amortization expense. The Company defines
Adjusted EBITDA as EBITDA, excluding share based compensation, acquisition and integration related charges,
restructuring and related charges, purchase accounting fair value adjustments, and other items that are unusual in
nature or not comparable from period to period.
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.
While we believe that EBITDA and Adjusted EBITDA is useful supplemental information, such adjusted
results are not intended to replace our financial results in accordance with Accounting Principles Generally
Accepted in the United States (“GAAP”) and should be read in conjunction with those GAAP results.
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