Title of each class | Name of each exchange on which registered |
Common Stock, par value $.01 per share | New York Stock Exchange |
Large accelerated filer: | ý | Accelerated filer: | o | |
Non-accelerated filer: | o | Smaller reporting company: | o | |
(Do not check if a smaller reporting company) |
INDEX | ||
PART I | ||
Item | Page | |
1 | ||
1A | ||
1B | ||
2 | ||
3 | ||
4 | ||
4A | ||
PART II | ||
5 | ||
6 | ||
7 | ||
7A | ||
8 | ||
9 | ||
9A | ||
9B | ||
PART III | ||
10 | ||
11 | ||
12 | ||
13 | ||
14 | ||
PART IV | ||
15 | ||
• | General market and economic conditions; |
• | Market trends in the categories in which we operate; |
• | The success of new products and the ability to continually develop and market new products; |
• | Our ability to attract, retain and improve distribution with key customers; |
• | Our ability to continue planned advertising and other promotional spending; |
• | Our ability to timely execute strategic initiatives, including restructurings, in a manner that will positively impact our financial condition and results of operations and does not disrupt our business operations; |
• | The impact of strategic initiatives, including restructurings, on our relationships with employees, customers and vendors; |
• | Our ability to maintain and improve market share in the categories in which we operate despite heightened competitive pressure; |
• | Our ability to improve operations and realize cost savings; |
• | The impact of raw material and other commodity costs; |
• | The impact of foreign currency exchange rates and currency controls as well as offsetting hedges; |
• | Our ability to acquire and integrate businesses; |
• | The impact of advertising and product liability claims and other litigation; |
• | Compliance with debt covenants as well as the impact of interest and principal repayment of our existing and any future debt; or |
• | The impact of legislative or regulatory determinations or changes by federal, state and local, and foreign authorities, including taxing authorities. |
• | Reduce global workforce by more than 10%, or approximately 1,500 colleagues; |
• | Rationalize and streamline operations facilities in the Household Products Division; |
• | Consolidate general and administrative functional support across the organization; |
• | Streamline the Household Products Division product portfolio to enable increased focus on our core battery and portable lighting businesses; |
• | Streamline the marketing organization within our Household Products Division; |
• | Optimize our go-to-market strategies and organization structures within our international markets; |
• | Reduce overhead spending, including changes to benefit programs and other targeted spending reductions; and |
• | Create a center-led purchasing function to drive procurement savings. |
• | our primary competitor in batteries, wet shave and feminine care products, The Procter & Gamble Company, and our other competitors, may have substantially greater financial, marketing, research and development and other resources and greater market share in certain segments than Energizer does, which could provide them with greater scale and negotiating leverage with retailers and suppliers; |
• | our competitors may have lower production, sales and distribution costs, and higher profit margins, which may enable them to offer aggressive retail discounts and other promotional incentives; |
• | our competitors may be able to obtain exclusive distribution rights at particular retailers, or favorable in-store placement; and |
• | we may lose market share to private label brands sold by retail chains, which are typically sold at lower prices than our products. |
• | the possibility of expropriation, confiscatory taxation or price controls; |
• | the inability to repatriate foreign-based cash, which constitutes substantially all of our overall cash, for strategic needs in the U.S. without incurring significant income tax and earnings consequences, as well as the heightened counter-party, internal control and country-specific risks associated with holding cash overseas; |
• | the effect of foreign income taxes, value-added taxes and withholding taxes, including the inability to recover amounts owed to Energizer by a government authority without extended proceedings or at all; |
• | the effect of the U.S. tax treatment of foreign source income and losses, and other restrictions on the flow of capital between countries; |
• | adverse changes in local investment or exchange control regulations; |
• | restrictions on and taxation of international imports and exports; |
• | currency fluctuations, including the impact of hyper-inflationary conditions in certain economies; |
• | political or economic instability, government nationalization of business or industries, government corruption, and civil unrest, including political or economic instability in the countries of the Eurozone, Egypt and the Middle East and across Latin America, including Venezuela and Argentina; |
• | legal and regulatory constraints, including tariffs and other trade barriers; and |
• | difficulty in enforcing contractual and intellectual property rights. |
• | actual or perceived disruption of service or reduction in service standards to customers; |
• | the failure to preserve adequate internal controls as we restructure our general and administrative functions, including our information technology and financial reporting infrastructure; |
• | the failure to preserve supplier relationships and distribution, sales and other important relationships and to resolve conflicts that may arise; |
• | loss of sales as we reduce or eliminate staffing on non-core product lines; |
• | diversion of management attention from ongoing business activities; and |
• | the failure to maintain employee morale and retaining key employees while implementing benefit changes and reductions in the workforce. |
HOUSEHOLD PRODUCTS | |
North America | Asia |
Asheboro, NC (2) | Bogang, People’s Republic of China (1)(9) |
Bennington, VT | Cimanggis, Indonesia (8) |
Garrettsville, OH | Ekala, Sri Lanka |
Marietta, OH | Jurong, Singapore (8) |
Walkerton, Ontario, Canada (5) | Tianjin, People’s Republic of China (1) |
Westlake, OH (3) | |
Europe, Middle East and Africa | |
Alexandria, Egypt | |
Nakuru, Kenya (4) | |
PERSONAL CARE | |
North America | Europe, Middle East and Africa |
Milford, CT | Nove Modlany, Czech Republic (1) |
Verona, VA | Solingen, Germany |
Obregon, Mexico (1) | Nazareth, Israel |
Mexico City, Mexico (1) | |
Knoxville, TN | South America |
Dover, DE (6) | Santa Catarina, Brazil (1) |
Sidney, OH (7) | |
Ormond Beach, FL | Asia |
Allendale, NJ (1)(3) | Guangzhou, People’s Republic of China (1) |
Montreal, Quebec, Canada | |
ADMINISTRATIVE AND | |
EXECUTIVE OFFICES | |
St. Louis, MO (1) | Mississauga, Ontario, Canada (1) |
Shelton, CT (1) | Cedar Knolls, NJ (1) |
Market Price Range | |||||||||||||||||||
FY2013 | FY2012 | ||||||||||||||||||
First Quarter | $ | 69.46 | - | $ | 83.33 | $ | 62.98 | - | $ | 78.00 | |||||||||
Second Quarter | $ | 80.78 | - | $ | 100.25 | $ | 72.41 | - | $ | 80.10 | |||||||||
Third Quarter | $ | 92.43 | - | $ | 102.98 | $ | 69.45 | - | $ | 78.29 | |||||||||
Fourth Quarter | $ | 90.59 | - | $ | 108.50 | $ | 64.36 | - | $ | 80.36 |
Quarterly Dividend Payments (per share) | FY2013 | FY2012 | ||||||
First Quarter | $ | 0.40 | — | |||||
Second Quarter | $ | 0.40 | — | |||||
Third Quarter | $ | 0.40 | — | |||||
Fourth Quarter | $ | 0.50 | $ | 0.40 |
Period | Total Number of Shares purchased(1) | Average price paid per shares | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2) | Maximum Number that May Yet Be Purchased Under the Plans or Programs | |||||
July 1, 2013-July 31, 2013 | 1,129 | $ | 105.59 | — | 6,019,739 | ||||
August 1, 2013-August 31, 2013 | 2,728 | $ | 98.42 | — | 6,019,739 | ||||
September 1, 2013 – September 30, 2013 | 2,651 | $ | 94.53 | — | 6,019,739 |
(1) | 6,508 shares purchased during the quarter relate to the surrender to the Company of shares of common stock to satisfy tax withholding obligations in connection with the vesting of restricted stock or execution of net exercises. |
(2) | On April 30, 2012, the Board of Directors approved a new share repurchase authorization for the repurchase of up to ten million shares. This authorization replaced the prior share repurchase authorization. No shares were repurchased on the open market during the fiscal year under this share repurchase authorization exclusive of the small number of shares related to the net settlement of certain stock awards for tax withholding purposes. |
9/08 | 9/09 | 9/10 | 9/11 | 9/12 | 9/13 | |||||||||||||
Energizer Holdings, Inc. | 100.00 | 82.36 | 83.46 | 82.48 | 93.17 | 117.29 | ||||||||||||
S&P Midcap 400 | 100.00 | 96.89 | 114.11 | 112.66 | 144.81 | 184.89 | ||||||||||||
S&P Household Products | 100.00 | 89.42 | 96.01 | 106.17 | 123.69 | 139.59 |
A. | Documents filed with this report: | |||
1. | Financial statements included as Exhibit 13 attached hereto and incorporated by reference herein: | |||
- | Report of Independent Registered Public Accounting Firm. | |||
- | Consolidated Statements of Earnings and Comprehensive Income -- for years ended September 30, 2013, 2012 and 2011. | |||
- | Consolidated Balance Sheets -- at September 30, 2013 and 2012. | |||
- | Consolidated Statements of Cash Flows -- for years ended September 30, 2013, 2012 and 2011. | |||
- | Consolidated Statements of Shareholders’ Equity -- at September 30, 2013, 2012 and 2011. | |||
- | Notes to Consolidated Financial Statements. | |||
Financial statements of the Registrant's 50% or less owned companies have been omitted because, in the aggregate, they are not significant. | ||||
2. | Financial Statement Schedules. | |||
Schedules not included have been omitted because they are not applicable or the required information is shown in the financial statements or notes thereto. | ||||
3. | Exhibits Required by Item 601 of Regulation S-K. Pursuant to the Instructions to Exhibits, certain instruments defining the rights of holders of long-term debt securities of the Company and its consolidated subsidiaries are not filed because the total amount of securities authorized under any such instrument does not exceed 10 percent of the total assets of the Company and its subsidiaries on a consolidated basis. A copy of such instrument will be furnished to the Securities and Exchange Commission upon request. | |||
2.1 | Agreement and Plan of Reorganization (incorporated by reference to Exhibit 2.1 of Energizer’s Post-Effective Amendment No. 1 to Form 10, filed April 19, 2000). | |||
2.2 | Agreement and Plan of Merger among Energizer, ETKM, Inc., and Playtex Products, Inc. dated July 12, 2007 (incorporated by reference to Exhibit 2.1 of Energizer’s Current Report on Form 8-K filed July 13, 2007).*** | |||
2.3 | Asset Purchase Agreement, dated as of May 10, 2009, by and between S.C. Johnson & Son, Inc., a Wisconsin corporation and Energizer (incorporated by reference to Exhibit 2.1 of Energizer’s Current Report on Form 8-K filed May 11, 2009).*** | |||
2.4 | Asset Purchase Agreement dated as of October 8, 2010, by and between American Safety Razor, LLC, a Delaware limited liability company, and Energizer (incorporated by reference to Exhibit 2.1 of Energizer’s Current Report on Form 8-K filed October 13, 2010).*** | |||
3.1 | Restated Articles of Incorporation of Energizer Holdings, Inc.** | |||
3.2 | Amended Bylaws of Energizer Holdings, Inc., restated as of April 25, 2011 (incorporated by reference to Exhibit 3.1 of Energizer’s Current Report on Form 8-K, filed April 27, 2011). | |||
4.1 | Indenture, dated as of May 19, 2011, by and among Energizer Holdings, Inc., the guarantors named therein, and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference to Exhibit 4.1 of Energizer's Current Report on Form 8-K, filed May 19, 2011). | |||
4.2 | First Supplemental Indenture, dated as of May 19, 2011, by and among Energizer Holdings, Inc., the guarantors named therein, and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference to Exhibit 4.2 of Energizer's Current Report on Form 8-K, filed May 19, 2011). | |||
4.3 | Second Supplemental Indenture (including the Form of Note), dated as of May 24, 2012, by and among the Company, the guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed May 24, 2012). | |||
10.1 | Tax Sharing Agreement (incorporated by reference to Exhibit 2.2 of Energizer’s Post-Effective Amendment No. 1 to Form 10, filed April 19, 2000). | |||
10.2 | Energizer Holdings, Inc. Incentive Stock Plan (incorporated by reference to Exhibit 10.1 of Energizer’s Post-Effective Amendment No. 1 to Form 10, filed April 19, 2000).* | |||
10.3 | Form of Indemnification Agreements with Executive Officers and Directors (incorporated by reference to Exhibit 10.4 of Energizer’s Post-Effective Amendment No. 1 to Form 10, filed April 19, 2000).* | |||
10.4 | Executive Long Term Disability Plan (incorporated by reference to Exhibit 10.7 of Energizer's Post-Effective Amendment No. 1 to Form 10, filed April 19, 2000).* | |||
10.5 | Executive Group Personal Excess Liability Insurance Plan (incorporated by reference to Exhibit 10.9 of Energizer's Post-Effective Amendment No. 1 to Form 10, filed April 19, 2000).* | |||
10.6 | Form of Non-Qualified Stock Option dated September 23, 2002 (incorporated by reference to Exhibit 10(i) of Energizer's Annual Report on Form 10-K for the Year ended September 30, 2002).* | |||
10.7 | Form of Non-Qualified Stock Option dated September 23, 2002 incorporated by reference to Exhibit 10(ii) of Energizer's Annual Report on Form 10-K for the Year ended September 30, 2002).* | |||
10.8 | Form of Non-Qualified Stock Option dated January 27, 2003 (incorporated by reference to Exhibit 10(i) of Energizer's Quarterly Report on Form 10-Q for the Quarter Ended December 31, 2002).* | |||
10.9 | Stock and Asset Purchase Agreement between Pfizer Inc. and Energizer Holdings, Inc. (incorporated by reference to Exhibit 10(vi) of Energizer's Quarterly Report on Form 10-Q for the Quarter Ended December 31, 2002). | |||
10.10 | Form of Restricted Stock Equivalent Award Agreement dated May 19, 2003 (incorporated by reference to Exhibit 10(ii) of Energizer's Amended Quarterly Report on Form 10-Q for the Quarter Ended June 30, 2003).* | |||
10.11 | Form of Non-Qualified Stock Option dated May 19, 2003 (incorporated by reference to Exhibit 10(iii) of Energizer's Amended Quarterly Report on Form 10-Q for the Quarter Ended June 30, 2003).* | |||
10.12 | Amended and Restated Prepaid Share Option Transaction Agreement between Energizer Holdings, Inc. and Citigroup Global Markets Limited dated as of August 28, 2003 (incorporated by reference to Exhibit 10(i) of Energizer's Annual Report on Form 10-K for the Year ended September 30, 2003). | |||
10.13 | Form of Non-Qualified Stock Option dated January 26, 2004 (incorporated by reference to Exhibit 10 of Energizer's Quarterly Report on Form 10-Q for the Quarter Ended December 31, 2003).* | |||
10.14 | Form of Non-Qualified Stock Option dated October 19, 2004 (incorporated by reference to Exhibit 10.1 of Energizer's Current Report on Form 8-K filed October 25, 2004).* | |||
10.15 | Form of Non-Qualified Stock Option dated January 14, 2005 (incorporated by reference to Exhibit 10.1 of Energizer's Current Report on Form 8-K filed January 19, 2005).* | |||
10.16 | Form of Restricted Stock Equivalent Award Agreement dated January 14, 2005 (incorporated by reference to Exhibit 10.2 of Energizer's Current Report on Form 8-K filed January 19, 2005).* | |||
10.17 | Non-Competition and Non-Disclosure Agreement with J.P. Mulcahy (incorporated by reference to Exhibit 10.3 of Energizer's Current Report on Form 8-K filed January 27, 2005).* | |||
10.18 | 2005 Note Purchase Agreement dated September 29, 2005 (incorporated by reference to Exhibit 10.1 of Energizer's Current Report on Form 8-K filed September 29, 2005). | |||
10.19 | 2006 Note Purchase Agreement dated July 6, 2006 (incorporated by reference to Exhibit 10.1 of Energizer's Current Report on Form 8-K filed July 7, 2006). | |||
10.20 | 2009 Restatement of Energizer Holdings, Inc. Deferred Compensation Plan, as amended and restated effective as of January 1, 2009 (incorporated by reference to Exhibit 10 of Energizer's Annual Report on Form 10-K for the year ended September 30, 2008).* | |||
10.21 | First Amendment to the 2009 Restatement of Energizer Holdings, Inc. Deferred Compensation Plan (incorporated by reference to Exhibit 4.3 to Energizer's Registration Statement on Form S-8 filed November 21, 2012). | |||
10.22 | Amendment No. 2 to the 2009 Restatement of Energizer Holdings, Inc. Deferred Compensation Plan (incorporated by reference to Exhibit 4.4 to Energizer's Registration Statement on Form S-8 filed November 21, 2012). | |||
10.23 | Amendment No. 3 to the 2009 Restatement of Energizer Holdings, Inc. Deferred Compensation Plan (incorporated by reference to Exhibit 4.5 to Energizer's Registration Statement on Form S-8 filed November 21, 2012). | |||
10.24 | Amendment No. 4 to the 2009 Restatement of Energizer Holdings, Inc. Deferred Compensation Plan (incorporated by reference to Exhibit 4.6 to Energizer's Registration Statement on Form S-8 filed November 21, 2012). | |||
10.25 | Form of 2007 Note Purchase Agreement dated October 15, 2007 (incorporated by reference to Exhibit 10.1 of Energizer's Current Report on Form 8-K filed October 17, 2007). | |||
10.26 | Amended Executive Officer Bonus Plan (incorporated by reference to Exhibit 10.2 of Energizer's Current Report on Form 8-K filed October 15, 2008).* | |||
10.27 | Form of Indemnification Agreement between Energizer and W. Klein (incorporated by reference to Exhibit 10 of Energizer's Current Report on Form 8-K filed November 5, 2008).* | |||
10.28 | Form of Change of Control Employment Agreements, as amended December 31, 2008 (incorporated by reference to Exhibit 10.1 of Energizer's Current Report on Form 8-K filed January 6, 2009).* | |||
10.29 | Energizer Holdings, Inc. 2000 Incentive Stock Plan, as amended and restated (incorporated by reference to Exhibit 10.2 of Energizer's Current Report on Form 8-K filed January 6, 2009).* | |||
10.30 | Form of Amendment to Certain Restricted Stock Equivalent Award Agreements (incorporated by reference to Exhibit 10.3 of Energizer's Current Report on Form 8-K filed January 6, 2009).* | |||
10.31 | Energizer Holdings, Inc. 2009 Incentive Stock Plan, approved January 26, 2009 (incorporated by reference to Exhibit 4 of Energizer's Registration Statement on Form S-8 filed February 2, 2009).* | |||
10.32 | Form of Performance Restricted Stock Equivalent Award Agreement (incorporated by reference to Exhibit 10.1 of Energizer's Current Report on Form 8-K filed February 10, 2009).* | |||
10.33 | Form of Performance Restricted Stock Equivalent Award Agreement (incorporated by reference to Exhibit 10.1 of Energizer's Amended Current Report on Form 8-K filed October 15, 2009).* | |||
10.34 | Form of Restricted Stock Equivalent Award Agreement (incorporated by reference to Exhibit 10.2 of Energizer's Amended Current Report on Form 8-K filed October 15, 2009).* | |||
10.35 | Form of Retention Stock Option Award (incorporated by reference to Exhibit 10.3 of Energizer's Amended Current Report on Form 8-K filed October 15, 2009).* | |||
10.36 | The summary of revisions to the Company's director compensation program, and the resolution authorizing personal use of corporate aircraft by the chief executive officer, is hereby incorporated by reference to Energizer's Current Report on Form 8-K filed November 4, 2009.* | |||
10.37 | Form of Restricted Stock Equivalent Award Agreement (incorporated by reference to Exhibit 10.52 of Energizer's Annual Report on Form 10-K for the Year ended September 30, 2010).* | |||
10.38 | Form of Restricted Stock Equivalent Award Agreement for Chief Executive Officer (incorporated by reference to Exhibit 10.53 of Energizer's Annual Report on Form 10-K for the Year ended September 30, 2010).* | |||
10.39 | Form of Performance Restricted Stock Equivalent Award Agreement (incorporated by reference to Exhibit 10.54 of Energizer's Annual Report on Form 10-K for the Year ended September 30, 2010).* | |||
10.40 | Form of Performance Restricted Stock Equivalent Award Agreement for Chief Executive Officer (incorporated by reference to Exhibit 10.55 of Energizer's Annual Report on Form 10-K for the Year ended September 30, 2010).* | |||
10.44 | 2009 Restatement of Energizer Holdings, Inc. Executive Savings Investment Plan effective as of January 1, 2009 (incorporated by reference to Exhibit 10.51 of Amendment No. 1 to Energizer's Annual Report on Form 10-K/A, filed May 16, 2011).* | |||
10.45 | Amendment No. 1 to 2009 Restatement of Energizer Holdings, Inc. Executive Savings Investment Plan effective as of January 1, 2009 (incorporated by reference to Exhibit 10.52 of Amendment No. 1 to Energizer's Annual Report on Form 10-K/A, filed May 16, 2011).* | |||
10.46 | Amendment No. 2 to 2009 Restatement of Energizer Holdings, Inc. Executive Savings Investment Plan effective as of January 1, 2010 (incorporated by reference to Exhibit 10.53 of Amendment No. 1 to Energizer's Annual Report on Form 10-K/A, filed May 16, 2011).* | |||
10.47 | 2010 Restatement of Energizer Holdings, Inc. Supplemental Executive Retirement Plan dated October 15, 2010 (incorporated by reference to Exhibit 10.54 of Amendment No. 1 to Energizer's Annual Report on Form 10-K/A, filed May 16, 2011).* | |||
10.48 | 2009 Restatement of Energizer Holdings, Inc. Financial Planning Plan dated effective as of January 1, 2009 (incorporated by reference to Exhibit 10.55 of Amendment No. 1 to Energizer's Annual Report on Form 10-K/A, filed May 16, 2011).* | |||
10.49 | Energizer Holdings, Inc. Executive Health Plan 2009 Restatement, effective as of January 1, 2009 (incorporated by reference to Exhibit 10.56 of Amendment No. 1 to Energizer's Annual Report on Form 10-K/A, filed May 16, 2011).* | |||
10.50 | Amended and Restated 2009 Incentive Stock Plan (incorporated by reference to Exhibit 10.1 to Energizer's Current Report on Form 8-K, filed January 21, 2011).* | |||
10.51 | Amended and Restated Revolving Credit Agreement dated as of May 6, 2011 among Energizer Holdings, Inc., a Missouri corporation, the institutions from time to time parties thereto as lenders and JPMorgan Chase Bank, N.A., in its capacity as Administrative Agent, Bank of America, N.A., and The Bank of Tokyo-Mitsubishi UFJ, Ltd. as co-syndication agents and Citibank, N.A. and Suntrust Bank, as co-documentation agents (incorporated by reference to Exhibit 10.1 to Energizer's Current Report on Form 8-K, filed May 6, 2011). | |||
10.52 | Energizer Holdings, Inc. Executive Health Plan for Retired Employees, restated effective January 1, 2011 (incorporated by reference to Exhibit 10.59 of Energizer's Annual Report on Form 10-K filed November 22, 2011).* | |||
10.53 | Form of Performance Restricted Stock Equivalent Award Agreement (incorporated by reference to Exhibit 10.2 of Energizer's Current Report on Form 8-K filed October 21, 2011).* | |||
10.54 | Form of Restricted Stock Equivalent Award Agreement (incorporated by reference to Exhibit 10.3 of Energizer's Current Report on Form 8-K filed October 21, 2011).* | |||
10.55 | Form of Restricted Stock Equivalent Award Agreement for Directors (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed May 2, 2012).* | |||
10.56 | Third Amended and Restated Receivables Purchase Agreement, dated as of May 4, 2009, as amended June 25, 2012, among Energizer Receivables Funding Corporation, Energizer Battery, Inc., Energizer Personal Care, LLC, The Bank of Tokyo-Mitsubishi UFJ, LTD., New York Branch and the Several Agents, Conduits and Committed Purchasers Party Thereto from time to time, conformed to reflect Amendments Nos. 1, 2, 3, 4 and 5 (incorporated by reference to Exhibit 10.2 to the Company's quarterly report on Form 10-Q filed August 1, 2012). | |||
10.57 | Amendment No. 3 to 2009 Restatement of Energizer Holdings, Inc. Deferred Compensation Plan, dated November 7, 2011 (incorporated by reference to Exhibit 10.59 to the Company's annual report on Form 10-K filed November 20, 2012).* | |||
10.58 | Partial Freeze Amendment For the 2009 Restatement of the Energizer Holdings, Inc. Deferred Compensation Plan dated September 11, 2012 (incorporated by reference to Exhibit 10.60 to the Company's annual report on Form 10-K filed November 20, 2012).* | |||
10.59 | Clarifying Amendment to the Energizer Holdings, Inc. Executive Health Plan for Active Employees, dated July 27, 2012 (incorporated by reference to Exhibit 10.61 to the Company's annual report on Form 10-K filed November 20, 2012).* | |||
10.60 | Termination Amendment for the Energizer Holdings, Inc. Executive Health Plan for Active Employees, dated September 11, 2012 (incorporated by reference to Exhibit 10.62 to the Company's annual report on Form 10-K filed November 20, 2012).* | |||
10.61 | Termination Amendment for the Energizer Holdings, Inc. Executive Health Plan for Retired Employees, dated September 11, 2012 (incorporated by reference to Exhibit 10.63 to the Company's annual report on Form 10-K filed November 20, 2012).* | |||
10.62 | Form of Change of Control Employment Agreement for use with designated individuals subsequent to January 1, 2012, first entered into with Alan R. Hoskins on February 13, 2012 (incorporated by reference to Exhibit 10.64 to the Company's annual report on Form 10-K filed November 20, 2012).* | |||
10.63 | Form of Performance Restricted Stock Equivalent Award Agreement (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed December 14, 2012).* | |||
10.64 | Form of Restricted Stock Equivalent Award Agreement (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed December 14, 2012).* | |||
10.65 | Form of Performance Restricted Stock Equivalent Award Agreement.*, ** | |||
10.66 | Form of Restricted Stock Equivalent Award Agreement.*, ** | |||
12 | Calculation of Earnings to Fixed Charges.** | |||
13 | Portions of the Energizer Holdings, Inc. 2013 Annual Report to Shareholders for the year ended September 30, 2013.** | |||
21 | Subsidiaries of Registrant.** | |||
23 | Consent of Independent Registered Public Accounting Firm.** | |||
31.1 | Section 302 Certification of Chief Executive Officer.** | |||
31.2 | Section 302 Certification of Executive Vice President and Chief Financial Officer.** | |||
32.1 | Section 1350 Certification of Chief Executive Officer.** | |||
32.2 | Section 1350 Certification of Executive Vice President and Chief Financial Officer.** | |||
101 | Attached as Exhibit 101 to this Form 10-K are the following documents formatted in eXtensible Business Reporting Language (XBRL): (i) Consolidated Statements of Earnings and Comprehensive Income for the years ended September 30, 2011, 2012 and 2013, (ii) Consolidated Balance Sheets at September 30, 2012 and 2013, (iii) Consolidated Statements of Cash Flows for the years ended September 30, 2011, 2012 and 2013, (iv) Consolidated Statements of Shareholders' Equity for the years ended September 30, 2011, 2012 and 2013, and (v) Notes to Consolidated Financial Statements for the year ended September 30, 2013. The financial information contained in the XBRL-related documents is “unaudited” and “unreviewed.”** |
ENERGIZER HOLDINGS, INC. | |||
By | /s/ Ward M. Klein | ||
Ward M. Klein | |||
Chief Executive Officer |
Signature | Title |
/s/ Ward M. Klein | |
Ward M. Klein (principal executive officer) | Chief Executive Officer and Director |
/s/ Daniel J. Sescleifer | |
Daniel J. Sescleifer (principal financial officer) | Executive Vice President and Chief Financial Officer |
/s/ John J. McColgan | |
John J. McColgan (controller and principal accounting officer) | Vice President and Controller |
/s/ J. Patrick Mulcahy | |
J. Patrick Mulcahy | Chairman of the Board of Directors |
/s/ Bill G. Armstrong | |
Bill G. Armstrong | Director |
/s/ Daniel J. Heinrich | |
Daniel J. Heinrich | Director |
/s/ R. David Hoover | |
R. David Hoover | Director |
/s/ John C. Hunter | |
John C. Hunter | Director |
/s/ James C. Johnson | |
James C. Johnson | Director |
/s/ John E. Klein | |
John E. Klein | Director |
/s/ W. Patrick McGinnis | |
W. Patrick McGinnis | Director |
/s/ Pamela Nicholson | |
Pamela Nicholson | Director |
/s/ John R. Roberts | |
John R. Roberts | Director |
Date: November 21, 2013 |
Name | Street | City |
Timothy L. Grosch | Checkerboard Square | St. Louis, Missouri 63164 |
• | unusual or non-recurring accounting impacts or changes in accounting standards or treatment; |
• | non-cash costs associated with events such as plant closings, sales of facilities or operations, and business restructurings; or |
• | unusual or extraordinary non-cash items. |
• | unusual or non-recurring accounting impacts or changes in accounting standards or treatment; |
• | non-cash costs associated with events such as plant closings, sales of facilities or operations, and business restructurings; or |
• | unusual or extraordinary non-cash items. |
• | the effects of acquisitions; divestitures; or recapitalizations; |
• | a corporate transaction, such as any merger of the Company with another corporation; any consolidation of the Company and another corporation into another corporation; any separation of the Company or its business units (including a spin-off or other distribution of stock or property by the Company); |
• | any reorganization of the Company (whether or not such reorganization comes within the definition of such term in Code Section 368); or any partial or complete liquidation by the Company; or sale of all or substantially all of the assets of the Company; |
• | unusual or non-recurring accounting impacts or changes in accounting standards or treatment; |
• | non-cash costs associated with events such as plant closings, sales of facilities or operations; and business restructurings; or |
• | unusual or extraordinary non-cash items. |
(b) | the amount of Target Performance Equivalents which would have vested had the Performance Period ended on the date the Change of Control occurs based on the Committee’s determination of the extent to which performance goals with respect to that Performance Period have been met based on such audited or unaudited financial information or other information then available that the Committee deems relevant. |
(a) | the Recipient’s voluntary or involuntary Termination of Employment; or |
(b) | a determination by the Committee that the Recipient engaged in Competition (as defined in the Plan) with the Company or other conduct contrary to the best interests of the Company in violation of Article II of this Agreement. |
(i) | The acquisition by one person, or more than one person acting as a group, of ownership of stock (including Common Stock) of the Company that, together with stock held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of the Company. Notwithstanding the above, if any person or more than one person acting as a group, is considered to own more than 50% of the total fair market value or total voting power of the stock of the Company, the acquisition of additional stock by the same person or persons will not constitute a Change of Control; or |
(ii) | A majority of the members of the Company’s Board of Directors is replaced during any twelve-month period by directors whose appointment or election is not endorsed by a majority of the members of the Company’s Board of Directors before the date of the appointment or election. |
(a) | I acknowledge that the restrictions contained in this Article II are reasonable and necessary to protect the legitimate interests of the Company and its affiliates, that the Company would not have granted me this Award Agreement in the absence of such restrictions, and that any violation of any provisions of this Article II will result in irreparable injury to the Company and its affiliates. By agreeing to accept this Award Agreement, I represent that my experience and capabilities are such that the restrictions contained herein will not prevent me from obtaining employment or otherwise earning a living at the same general level of economic benefit as is currently the case. I further represent and acknowledge that I have been advised by the Company to consult my own legal counsel in respect of this Award Agreement, and I have had full opportunity, prior to agreeing to accept this Award Agreement, to review thoroughly its terms and provisions with my counsel. |
(b) | I agree that the Company shall be entitled to preliminary and permanent injunctive relief, without the necessity of proving actual damages, as well as an equitable accounting of all earnings, profits and other benefits arising from any violation of this Article II, which rights shall be cumulative and in addition to any other rights or remedies to which the Company may be entitled. |
(c) | I irrevocably and unconditionally consent to the service of any process, pleadings notices or other papers in a manner permitted by law. |
1. | Governing Law. |
By: ![]() | ||||
Recipient | Ward M. Klein | |||
Chief Executive Officer |
(a) | the Recipient’s voluntary or involuntary Termination of Employment; or |
(b) | a determination by the Committee that the Recipient engaged in competition (as defined in the Plan) with the Company or other conduct contrary to the best interests of the Company in violation of Article II of this Agreement. |
(i) | The acquisition by one person, or more than one person acting as a group, of ownership of stock (including Common Stock) of the Company that, together with stock held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of the Company. Notwithstanding the above, if any person or more than one person acting as a group, is considered to own more than 50% of the total fair market value or total voting power of the stock of the Company, the acquisition of additional stock by the same person or persons will not constitute a Change of Control; or |
(ii) | A majority of the members of the Company’s Board of Directors is replaced during any twelve-month period by directors whose appointment or election is not endorsed by a majority of the members of the Company’s Board of Directors before the date of the appointment or election. |
(a) | I acknowledge that the restrictions contained in this Article II are reasonable and necessary to protect the legitimate interests of the Company and its affiliates, that the Company would not have granted me this Award Agreement in the absence of such restrictions, and that any violation of any provisions of this Article II will result in irreparable injury to the Company and its affiliates. By agreeing to accept this Award Agreement, I represent that my experience and capabilities are such that the restrictions contained herein will not prevent me from obtaining employment or otherwise earning a living at the same general level of economic benefit as is currently the case. I further |
(b) | I agree that the Company shall be entitled to preliminary and permanent injunctive relief, without the necessity of proving actual damages, as well as an equitable accounting of all earnings, profits and other benefits arising from any violation of this Article II, which rights shall be cumulative and in addition to any other rights or remedies to which the Company may be entitled. |
(c) | I irrevocably and unconditionally consent to the service of any process, pleadings notices or other papers in a manner permitted by law. |
By: ![]() | ||||
Recipient | Ward M. Klein | |||
Chief Executive Officer |
Twelve Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||
EARNINGS BEFORE INCOME TAXES | $567.9 | $565.4 | $406.0 | $543.4 | $445.3 | ||||||||||
ADDITIONS: | |||||||||||||||
Interest Expense | 130.5 | 127.3 | 121.4 | 125.4 | 144.7 | ||||||||||
Deferred Financing recorded in SGA | — | — | 0.5 | 0.1 | 1.4 | ||||||||||
Estimated portion of rental expense attributable to interest | 2.2 | 2.3 | 2.4 | 2.3 | 2.4 | ||||||||||
TOTAL FIXED CHARGES | 132.7 | 129.6 | 124.3 | 127.8 | 148.5 | ||||||||||
EARNINGS BEFORE INCOME TAXES PLUS FIXED CHARGES | $700.6 | $695.0 | $530.3 | $671.2 | $593.8 | ||||||||||
RATIO OF EARNINGS TO FIXED CHARGES | 5.3 | 5.4 | 4.3 | 5.3 | 4.0 |
INDEX | |
Page | |
• | General market and economic conditions; |
• | Market trends in the categories in which we operate; |
• | The success of new products and the ability to continually develop and market new products; |
• | Our ability to attract, retain and improve distribution with key customers; |
• | Our ability to continue planned advertising and other promotional spending; |
• | Our ability to timely execute strategic initiatives, including restructurings, in a manner that will positively impact our financial condition and results of operations and does not disrupt our business operations; |
• | The impact of strategic initiatives, including restructurings, on our relationships with employees, customers and vendors; |
• | Our ability to maintain and improve market share in the categories in which we operate despite heightened competitive pressure; |
• | Our ability to improve operations and realize cost savings; |
• | The impact of raw material and other commodity costs; |
• | The impact of foreign currency exchange rates and currency controls as well as offsetting hedges; |
• | Our ability to acquire and integrate businesses; |
• | The impact of advertising and product liability claims and other litigation; |
• | Compliance with debt covenants as well as the impact of interest and principal repayment of our existing and any future debt; or |
• | The impact of legislative or regulatory determinations or changes by federal, state and local, and foreign authorities, including taxing authorities. |
• | Net earnings per diluted share of $6.47, up 4.0%; adjusted net earnings per diluted share of $6.96, up 12.3% (as shown in the below reconciliation), |
• | Net sales down 2.2% (1.1% organically, as shown in the below reconciliation) due primarily to continued category declines in Household Products (down 2.6% organically) and extensive competitive activity in Personal Care (essentially flat organically), |
• | Gross margin up 30 basis points as a percent of net sales on a reported basis, and up 80 basis points excluding the unfavorable impact of currencies, |
• | SG&A down $62.8 and down 90 basis points as a percent of net sales, |
• | Improved average managed working capital, as defined, as a percent of net sales, which declined to 18.1% for fiscal 2013 as compared to 21.4% in fiscal 2012 and as compared to 22.9% in fiscal 2011. See "Liquidity and Capital Resources - Operating Activities" for definition of managed working capital, |
• | Net cash flow from operating activities was $750.0, up $118.4 or 19% as compared to fiscal 2012 despite significant cash restructuring costs in fiscal 2013 due primarily to the improvement in managed working capital, and |
• | Cash payments of dividends totaling $105.6 to common shareholders, as fiscal 2013 was the first full year of quarterly dividends for Energizer. |
• | Reduce global workforce by more than 10%, or approximately 1,500 colleagues; |
• | Rationalize and streamline operations facilities in the Household Products Division; |
• | Consolidate general and administrative functional support across the organization; |
• | Streamline the Household Products Division product portfolio to enable increased focus on our core battery and portable lighting businesses; |
• | Streamline the marketing organization within our Household Products Division; |
• | Optimize our go-to-market strategies and organization structures within our international markets; |
• | Reduce overhead spending, including changes to benefit programs and other targeted spending reductions; and |
• | Create a center-led purchase function to drive procurement savings. |
• | Non-cash asset impairment charges of $19.3 and accelerated depreciation charges of $23.6 for the twelve months ended September 30, 2013 related primarily to completed and upcoming plant closures, |
• | Severance and related benefit costs of $49.3 for the twelve months ended September 30, 2013, associated with staffing reductions that have been identified to date, and |
• | Consulting, program management and other charges associated with the restructuring of $47.1 for the twelve months ended September 30, 2013. |
For The Years Ended September 30, | |||||||||||||||||||
Net Earnings | Diluted EPS | ||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||
Diluted Net Earnings/EPS - GAAP | $ | 407.0 | $ | 408.9 | $ | 261.2 | $ | 6.47 | $ | 6.22 | $ | 3.72 | |||||||
Impacts, net of tax: expense (income) | |||||||||||||||||||
2013 restructuring and related costs (1) | 97.9 | 4.6 | — | 1.55 | 0.07 | — | |||||||||||||
Net pension / post retirement benefit gains | (67.5 | ) | — | — | (1.07 | ) | — | — | |||||||||||
2011 Household Products restructuring | — | (5.7 | ) | 63.3 | — | (0.09 | ) | 0.89 | |||||||||||
Early debt retirement / duplicate interest | — | — | 14.4 | — | — | 0.21 | |||||||||||||
Other realignment/integration | 2.6 | 5.6 | 10.5 | 0.04 | 0.08 | 0.15 | |||||||||||||
Acquisition inventory valuation | — | — | 4.4 | — | — | 0.06 | |||||||||||||
Venezuela devaluation/other impacts | 6.3 | — | 1.8 | 0.10 | — | 0.03 | |||||||||||||
Early termination of interest rate swap | — | 1.1 | — | — | 0.02 | — | |||||||||||||
Tax adjustments, including valuation allowance | (8.3 | ) | (7.0 | ) | 9.7 | (0.13 | ) | (0.10 | ) | 0.14 | |||||||||
Diluted Net Earnings/EPS - adjusted (Non-GAAP) | $ | 438.0 | $ | 407.5 | $ | 365.3 | $ | 6.96 | $ | 6.20 | $ | 5.20 | |||||||
Weighted average shares - diluted | 62.9 | 65.7 | 70.3 |
Net Sales - Total Company | ||||||||||||||||||
For the Years Ended September 30, | ||||||||||||||||||
2013 | % Chg | 2012 | % Chg | 2011 | ||||||||||||||
Net sales - prior year | $ | 4,567.2 | $ | 4,645.7 | $ | 4,248.3 | ||||||||||||
Organic | (50.5 | ) | (1.1 | )% | (55.6 | ) | (1.2 | )% | 39.3 | |||||||||
Impact of currency | (50.7 | ) | (1.1 | )% | (69.1 | ) | (1.5 | )% | 95.8 | |||||||||
Incremental impact of acquisitions | — | — | % | 46.2 | 1.0 | % | 262.3 | |||||||||||
Net sales - current year | $ | 4,466.0 | (2.2 | )% | $ | 4,567.2 | (1.7 | )% | $ | 4,645.7 |
• | The Household Products restructuring included significant costs incurred in countries with comparatively low effective tax rates, which has the effect of increasing our overall effective tax rate due to a lower tax benefit associated with these costs, |
• | Establishment of an estimated valuation allowance for certain tax loss carryforwards of $4.5 related to costs incurred from the fiscal 2011 closure of the Swiss plant as part of the Household Products restructuring, |
• | Tax expense of $6.9 due to the establishment of a valuation allowance for certain foreign tax loss carryforwards, which are no longer likely to be utilized, based on a recent evaluation, |
• | Adjustments were recorded to reflect refinement of estimates of tax attributes to amounts in filed returns, settlement of tax audits and other tax adjustments. These fiscal 2011 adjustments decreased the income tax provision by $1.7, and |
• | A tax benefit of $2.6 was recorded in fiscal 2011 associated with the write-up and subsequent sale of inventory acquired in the ASR acquisition |
Net Sales - Personal Care Products | ||||||||||||||||||
For the years ended September 30, | ||||||||||||||||||
2013 | % Chg | 2012 | % Chg | 2011 | ||||||||||||||
Net sales - prior year | $ | 2,479.5 | $ | 2,449.7 | $ | 2,048.6 | ||||||||||||
Organic | 4.1 | 0.2 | % | 15.0 | 0.6 | % | 92.8 | |||||||||||
Impact of currency | (34.7 | ) | (1.4 | )% | (31.4 | ) | (1.3 | )% | 46.0 | |||||||||
Incremental impact of acquisitions | — | — | % | 46.2 | 1.9 | % | 262.3 | |||||||||||
Net sales - current year | $ | 2,448.9 | (1.2 | )% | $ | 2,479.5 | 1.2 | % | $ | 2,449.7 |
• | Wet Shave net sales declined approximately $25, or 1.5%, on a reported basis. Excluding the impact of unfavorable currencies, organic sales increased approximately $8, or 0.5%. The year-over-year increase was primarily due to continued growth of Schick Hydro men's systems, Hydro Silk women's systems, and the launch of Hydro Disposable razors. These gains were partially offset by lower sales of legacy branded men's and women's systems and shave preparations, |
• | Skin Care net sales were essentially flat on a reported and organic basis as sun care sales were negatively impacted by cool and wet weather during much of the summer season in the U.S. This was offset by growth in international sun care, |
• | Infant Care net sales declined approximately $11, or 6%, on both a reported and organic basis due primarily to overall category declines and increased competitive activity, and |
• | Feminine Care net sales were essentially flat on a reported and organic basis as declines in Playtex Gentle Glide were mostly offset by continued growth in Playtex Sport. |
• | Net sales in Wet Shave, inclusive of the ASR impact, increased approximately 3%, or approximately $50, on a reported basis, and approximately 5% excluding unfavorable currencies. This growth was driven by increased sales of Schick Hydro men's systems, and the launches of Schick Hydro 5 Power Select and Hydro Silk women's systems, partially offset by lower sales of legacy branded men's and women's systems, |
• | Net sales in Skin Care increased approximately $5, on a reported basis, on higher sales of Sun Care products in international markets, |
• | In Infant Care, net sales decreased approximately $18 on a reported basis, due to category softness and competitive activity, and |
• | Net sales in Feminine Care decreased approximately $10 on a reported basis, as Playtex Gentle Glide declines were partially offset by continued growth in Playtex Sport. |
Segment Profit - Personal Care Products | ||||||||||||||||||
For the years ended September 30, | ||||||||||||||||||
2013 | % Chg | 2012 | % Chg | 2011 | ||||||||||||||
Segment profit - prior year | $ | 470.7 | $ | 408.4 | $ | 366.6 | ||||||||||||
Operations | 27.4 | 5.9 | % | 68.3 | 16.8 | % | (9.0 | ) | ||||||||||
Impact of currency | (22.9 | ) | (4.9 | )% | (6.0 | ) | (1.5 | )% | 22.8 | |||||||||
Incremental impact of acquisitions | — | — | % | — | — | % | 28.0 | |||||||||||
Segment profit - current year | $ | 475.2 | 1.0 | % | $ | 470.7 | 15.3 | % | $ | 408.4 |
Net Sales - Household Products | ||||||||||||||||||
For the years ended September 30, | ||||||||||||||||||
2013 | % Chg | 2012 | % Chg | 2011 | ||||||||||||||
Net sales - prior year | $ | 2,087.7 | $ | 2,196.0 | $ | 2,199.7 | ||||||||||||
Organic | (54.6 | ) | (2.6 | )% | (70.6 | ) | (3.2 | )% | (53.6 | ) | ||||||||
Impact of currency | (16.0 | ) | (0.8 | )% | (37.7 | ) | (1.7 | )% | 49.9 | |||||||||
Net sales - current year | $ | 2,017.1 | (3.4 | )% | $ | 2,087.7 | (4.9 | )% | $ | 2,196.0 |
Segment Profit - Household Products | ||||||||||||||||||
For the years ended September 30, | ||||||||||||||||||
2013 | % Chg | 2012 | % Chg | 2011 | ||||||||||||||
Segment profit - prior year | $ | 400.2 | $ | 410.6 | $ | 451.1 | ||||||||||||
Operations | 52.1 | 13.0 | % | 12.1 | 3.0 | % | (66.2 | ) | ||||||||||
Impact of currency | (11.7 | ) | (2.9 | )% | (22.5 | ) | (5.5 | )% | 25.7 | |||||||||
Segment profit - current year | $ | 440.6 | 10.1 | % | $ | 400.2 | (2.5 | )% | $ | 410.6 |
For The Years Ended September 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
General corporate expenses | $ | 139.9 | $ | 151.2 | $ | 116.9 | ||||||
Integration/other realignment | 1.6 | 0.5 | 3.0 | |||||||||
Sub-Total | 141.5 | 151.7 | 119.9 | |||||||||
2013 restructuring and related costs (1) | 150.6 | 7.3 | — | |||||||||
Net pension / post-retirement gains | (107.6 | ) | — | — | ||||||||
2011 Household Products restructuring | — | (6.8 | ) | 79.0 | ||||||||
ASR costs: | ||||||||||||
Deal expenses | — | — | 4.2 | |||||||||
Severance/other integration | 2.5 | 8.4 | 9.3 | |||||||||
Acquisition inventory valuation | — | — | 7.0 | |||||||||
General corporate and other expenses | $ | 187.0 | $ | 160.6 | $ | 219.4 | ||||||
% of net sales | 4.2 | % | 3.5 | % | 4.7 | % |
• | increased costs of approximately $13 due to the year over year change in the underlying value of the Company's unfunded deferred compensation liabilities driven by the increase in the value of market securities, |
• | higher pension costs of approximately $7 due primarily to the unfavorable impact of lower market discount rates on the actuarial value of pension liabilities, |
• | higher annual bonus and stock award compensation of approximately $14 as short and long term performance targets were achieved in fiscal 2012 and were not achieved in fiscal 2011 due, in part, to our prior year strategic investments. |
Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | ||||||||||||||||
Long-term debt, including current maturities | $ | 2,140.0 | $ | 140.0 | $ | 440.0 | $ | 150.0 | $ | 1,410.0 | ||||||||||
Interest on long-term debt | 631.6 | 116.3 | 197.9 | 138.7 | 178.7 | |||||||||||||||
Notes Payable | 99.0 | 99.0 | — | — | — | |||||||||||||||
Minimum pension funding(1) | 84.9 | 31.1 | 30.1 | 23.7 | — | |||||||||||||||
Operating leases | 130.0 | 28.9 | 39.3 | 31.2 | 30.6 | |||||||||||||||
Purchase obligations and other(2) (3) (4) | 121.8 | 61.7 | 21.2 | 13.3 | 25.6 | |||||||||||||||
Total | $ | 3,207.3 | $ | 477.0 | $ | 728.5 | $ | 356.9 | $ | 1,644.9 |
1 | Globally, total pension contributions for the Company in the next five years are estimated to be approximately $85. The U.S. pension plans constitute approximately 80% of the total benefit obligations and plan assets for the Company’s pension plans. The estimates beyond 2014 represent future pension payments to comply with local funding requirements in the U.S. only. The projected payments beyond fiscal year 2018 are not currently determinable. |
2 | The Company has estimated approximately $6.9 of cash settlements associated with unrecognized tax benefits within the next year, which are included in the table above. As of September 30, 2013, the Company’s Consolidated Balance Sheet reflects a liability for unrecognized tax benefits of $37.3, excluding $12.4 of interest and penalties. The contractual obligations table above does not include this liability beyond one year. Due to the high degree of uncertainty regarding the timing of future cash outflows of liabilities for unrecognized tax benefits beyond one year, a reasonable estimate of the period of cash settlement for periods beyond the next twelve months cannot be made, and thus is not included in this table. |
3 | Included in the table above are approximately $67 of fixed costs related to third party logistics contracts. |
4 | Included in the table above are approximately $16 of severance and related benefit costs associated with staffing reductions that have been identified to date related to the 2013 restructuring. |
• | Revenue Recognition The Company derives revenues from the sale of its products. Revenue is recognized when title, ownership and risk of loss pass to the customer. When discounts are offered to customers for early payment, an estimate of the discounts is recorded as a reduction of net sales in the same period as the sale. Standard sales terms are final and, except for seasonal sun care returns, which are discussed in detail in the next paragraph, returns or exchanges are not permitted unless a special exception is made; reserves are established and recorded in cases where the right of return exists for a particular sale. |
• | Pension Plans and Other Postretirement Benefits The determination of the Company’s obligation and expense for pension and other postretirement benefits is dependent on certain assumptions developed by the Company and used by actuaries in calculating such amounts. Assumptions include, among others, the discount rate, future salary increases and the expected long-term rate of return on plan assets. Actual results that differ from assumptions made are recognized on the balance sheet and subsequently amortized to earnings over future periods. Significant differences in actual experience or significant changes in macroeconomic conditions resulting in changes to assumptions may materially affect pension and other postretirement obligations. This has been evident in recent years, as market discount rates utilized to determine the actuarial valuation of plan liabilities have, collectively, moved significantly lower as compared to market interest rates prior to the most recent recession. This has resulted in higher actuarial pension liabilities over time and contributed to higher net periodic pension costs. In determining the discount rate, the Company uses the yield on high-quality bonds that coincide with the cash flows of its plans’ estimated payouts. For the U.S. plans, which represent the Company’s most significant obligations, we consider the Mercer yield curves in determining the discount rates. |
• | Share-Based Compensation The Company grants restricted stock equivalents, which generally vest over three to four years. A portion of the restricted stock equivalents granted provide for the issuance of common stock to certain |
• | Valuation of Long-Lived Assets The Company periodically evaluates its long-lived assets, including property, plant and equipment, goodwill and intangible assets, for potential impairment indicators. Judgments regarding the existence of impairment indicators, including lower than expected cash flows from acquired businesses, are based on legal factors, market conditions and operational performance. Future events could cause the Company to conclude that impairment indicators exist. The Company estimates fair value using valuation techniques such as discounted cash flows. This requires management to make assumptions regarding future income, working capital and discount rates, which would affect the impairment calculation. See the discussion on “Acquisitions, Goodwill and Intangible Assets” included later in this section for further information. |
• | Income Taxes Our annual effective income tax rate is determined based on our income, statutory tax rates and the tax impacts of items treated differently for tax purposes than for financial reporting purposes. Tax law requires certain items be included in the tax return at different times than the items are reflected in the financial statements. Some of these differences are permanent, such as expenses that are not deductible in our tax return, and some differences are temporary, reversing over time, such as depreciation expense. These temporary differences create deferred tax assets and liabilities. |
• | Acquisitions, Goodwill and Intangible Assets The Company allocates the cost of an acquired business to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The excess value of the cost of an acquired business over the estimated fair value of the assets acquired and liabilities assumed is recognized as goodwill. The valuation of the acquired assets and liabilities will impact the determination of future operating results. The Company uses a variety of information sources to determine the value of acquired assets and liabilities including: third-party appraisers for the values and lives of property, identifiable intangibles and inventories; actuaries for defined benefit retirement plans; and legal counsel or other experts to assess the obligations associated with legal, environmental or other claims. |
Statements of Earnings Data (a) | FOR THE YEARS ENDED SEPTEMBER 30, | |||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||
Net sales | $ | 4,466.0 | $ | 4,567.2 | $ | 4,645.7 | $ | 4,248.3 | $ | 3,999.8 | ||||||||||
Depreciation and amortization | 187.4 | 162.2 | 181.3 | 139.2 | 130.4 | |||||||||||||||
Earnings before income taxes (d) | 567.9 | 565.4 | 406.0 | 543.4 | 445.3 | |||||||||||||||
Income taxes | 160.9 | 156.5 | 144.8 | 140.4 | 147.5 | |||||||||||||||
Net earnings (f) | $ | 407.0 | $ | 408.9 | $ | 261.2 | $ | 403.0 | $ | 297.8 | ||||||||||
Earnings per share: | ||||||||||||||||||||
Basic | $ | 6.55 | $ | 6.30 | $ | 3.75 | $ | 5.76 | $ | 4.77 | ||||||||||
Diluted | $ | 6.47 | $ | 6.22 | $ | 3.72 | $ | 5.72 | $ | 4.72 | ||||||||||
Average shares outstanding: | ||||||||||||||||||||
Basic | 62.1 | 64.9 | 69.6 | 70.0 | 62.4 | |||||||||||||||
Diluted | 62.9 | 65.7 | 70.3 | 70.5 | 63.1 | |||||||||||||||
Annual dividend per common share (b) | $ | 1.70 | $ | 0.40 | $ | — | $ | — | $ | — | ||||||||||
Balance Sheet Data | AT SEPTEMBER 30, | |||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||
Working capital (c) | $ | 1,415.0 | $ | 1,215.1 | $ | 1,233.3 | $ | 1,176.0 | $ | 966.3 | ||||||||||
Property, plant and equipment, net | 755.6 | 848.5 | 885.4 | 840.6 | 863.4 | |||||||||||||||
Total assets | 6,717.4 | 6,731.2 | 6,531.5 | 6,255.8 | 6,017.3 | |||||||||||||||
Long-term debt | 1,998.8 | 2,138.6 | 2,206.5 | 2,022.5 | 2,288.5 |
FOR THE YEARS ENDED SEPTEMBER 30, | ||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||
2013 restructuring (e) | $ | (150.6 | ) | $ | (7.3 | ) | $ | — | $ | — | $ | — | ||||||||
Venezuela devaluation/other impacts | (6.3 | ) | — | (1.8 | ) | (18.3 | ) | — | ||||||||||||
ASR integration/transaction costs | (2.5 | ) | (8.4 | ) | (13.5 | ) | (0.5 | ) | — | |||||||||||
Other realignment/integration costs | (1.6 | ) | (0.5 | ) | (3.0 | ) | (11.0 | ) | (13.6 | ) | ||||||||||
Net pension/post-retirement gains | 107.6 | — | — | — | — | |||||||||||||||
Prior restructuring | — | 6.8 | (79.0 | ) | — | — | ||||||||||||||
Early termination of interest rate swap | — | (1.7 | ) | — | — | — | ||||||||||||||
Early debt retirement/duplicate interest | — | — | (22.9 | ) | — | — | ||||||||||||||
Acquisition inventory valuation | — | — | (7.0 | ) | — | (3.7 | ) | |||||||||||||
Voluntary retirement/reduction in force costs | — | — | — | 0.2 | (38.6 | ) | ||||||||||||||
Paid time off adjustment | — | — | — | — | 24.1 | |||||||||||||||
Total | $ | (53.4 | ) | $ | (11.1 | ) | $ | (127.2 | ) | $ | (29.6 | ) | $ | (31.8 | ) |
FOR THE YEARS ENDED SEPTEMBER 30, | ||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||
2013 restructuring (g) | $ | (97.9 | ) | $ | (4.6 | ) | $ | — | $ | — | $ | — | ||||||||
Venezuela devaluation/other impacts | (6.3 | ) | — | (1.8 | ) | (14.2 | ) | — | ||||||||||||
ASR integration/transaction costs | (1.6 | ) | (5.3 | ) | (8.5 | ) | — | — | ||||||||||||
Other realignment/integration costs | (1.0 | ) | (0.3 | ) | (2.0 | ) | (7.4 | ) | (8.9 | ) | ||||||||||
Net pension/post-retirement gains | 67.5 | — | — | — | — | |||||||||||||||
Prior restructuring | — | 5.7 | (63.3 | ) | — | — | ||||||||||||||
Early termination of interest rate swap | — | (1.1 | ) | — | — | — | ||||||||||||||
Early debt retirement/duplicate interest | — | — | (14.4 | ) | — | — | ||||||||||||||
Acquisition inventory valuation | — | — | (4.4 | ) | — | (2.3 | ) | |||||||||||||
Voluntary retirement/reduction in force costs | — | — | — | 0.1 | (24.3 | ) | ||||||||||||||
Paid time off adjustment | — | — | — | — | 15.2 | |||||||||||||||
Adjustments to valuation allowances and prior years tax accruals | 8.3 | 7.0 | (9.7 | ) | 6.1 | (1.5 | ) | |||||||||||||
Tax benefits - special foreign dividend | — | — | — | 23.5 | — | |||||||||||||||
Total | $ | (31.0 | ) | $ | 1.4 | $ | (104.1 | ) | $ | 8.1 | $ | (21.8 | ) |
FOR THE YEARS ENDED SEPTEMBER 30, | ||||||||||||
Statement of Earnings | 2013 | 2012 | 2011 | |||||||||
Net sales | $ | 4,466.0 | $ | 4,567.2 | $ | 4,645.7 | ||||||
Cost of products sold | 2,361.7 | 2,429.3 | 2,500.0 | |||||||||
Gross profit | 2,104.3 | 2,137.9 | 2,145.7 | |||||||||
Selling, general and administrative expense | 825.0 | 887.8 | 856.1 | |||||||||
Advertising and sales promotion expense | 439.9 | 449.5 | 524.0 | |||||||||
Research and development expense | 99.0 | 112.5 | 108.3 | |||||||||
2013 restructuring | 139.3 | 7.3 | — | |||||||||
Net pension/post-retirement gains | (107.6 | ) | — | — | ||||||||
Prior restructuring | — | (6.8 | ) | 79.0 | ||||||||
Interest expense | 130.5 | 127.3 | 121.4 | |||||||||
Cost of early debt retirements | — | — | 19.9 | |||||||||
Other financing items, net | 10.3 | (5.1 | ) | 31.0 | ||||||||
Earnings before income taxes | 567.9 | 565.4 | 406.0 | |||||||||
Income taxes | 160.9 | 156.5 | 144.8 | |||||||||
Net earnings | $ | 407.0 | $ | 408.9 | $ | 261.2 | ||||||
Earnings Per Share | ||||||||||||
Basic net earnings per share | $ | 6.55 | $ | 6.30 | $ | 3.75 | ||||||
Diluted net earnings per share | $ | 6.47 | $ | 6.22 | $ | 3.72 | ||||||
Statement of Comprehensive Income | ||||||||||||
Net earnings | $ | 407.0 | $ | 408.9 | $ | 261.2 | ||||||
Other comprehensive income/(loss), net of tax | ||||||||||||
Foreign currency translation adjustments | 4.6 | (11.9 | ) | (8.7 | ) | |||||||
Pension/postretirement activity, net of tax of $18.9 in 2013, $(14.4) in 2012 and $(25.6) in 2011 | 35.7 | (24.8 | ) | (26.4 | ) | |||||||
Deferred gain/(loss) on hedging activity, net of tax of $3.1 in 2013 $1.6 in 2012 and $5.3 in 2011 | 4.6 | (0.4 | ) | 11.7 | ||||||||
Total comprehensive income | $ | 451.9 | $ | 371.8 | $ | 237.8 |
SEPTEMBER 30, | ||||||||
2013 | 2012 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 998.3 | $ | 718.5 | ||||
Trade receivables, net | 480.6 | 676.7 | ||||||
Inventories | 616.3 | 672.4 | ||||||
Other current assets | 473.2 | 455.0 | ||||||
Total current assets | 2,568.4 | 2,522.6 | ||||||
Property, plant and equipment, net | 755.6 | 848.5 | ||||||
Goodwill | 1,475.8 | 1,469.5 | ||||||
Other intangible assets, net | 1,835.5 | 1,853.7 | ||||||
Other assets | 82.1 | 36.9 | ||||||
Total assets | $ | 6,717.4 | $ | 6,731.2 | ||||
Liabilities and Shareholders' Equity | ||||||||
Current liabilities | ||||||||
Current maturities of long-term debt | $ | 140.0 | $ | 231.5 | ||||
Notes payable | 99.0 | 162.4 | ||||||
Accounts payable | 340.4 | 325.2 | ||||||
Other current liabilities | 574.0 | 588.4 | ||||||
Total current liabilities | 1,153.4 | 1,307.5 | ||||||
Long-term debt | 1,998.8 | 2,138.6 | ||||||
Other liabilities | 1,111.6 | 1,215.6 | ||||||
Total liabilities | 4,263.8 | 4,661.7 | ||||||
Shareholders' equity | ||||||||
Preferred stock, $.01 par value, none outstanding | — | — | ||||||
Common stock, $.01 par value, 65,251,989 and 108,008,682 | ||||||||
shares issued at 2013 and 2012, respectively | 0.7 | 1.1 | ||||||
Additional paid-in capital | 1,628.9 | 1,621.7 | ||||||
Retained earnings | 1,144.1 | 2,993.2 | ||||||
Common stock in treasury, at cost, 2,927,695 and 46,486,595 shares at 2013 and | ||||||||
2012, respectively | (147.2 | ) | (2,328.7 | ) | ||||
Accumulated other comprehensive loss | (172.9 | ) | (217.8 | ) | ||||
Total shareholders' equity | 2,453.6 | 2,069.5 | ||||||
Total liabilities and shareholders' equity | $ | 6,717.4 | $ | 6,731.2 |
FOR THE YEARS ENDED SEPTEMBER 30, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Cash Flow from Operating Activities | ||||||||||||
Net earnings | $ | 407.0 | $ | 408.9 | $ | 261.2 | ||||||
Adjustments to reconcile net earnings to net cash flow from operations: | ||||||||||||
Non-cash restructuring costs | 42.9 | — | — | |||||||||
Net pension/post-retirement gains | (107.6 | ) | — | — | ||||||||
Depreciation and amortization | 144.5 | 162.2 | 181.3 | |||||||||
Deferred income taxes | 43.3 | (2.9 | ) | 26.4 | ||||||||
Other non-cash charges | 70.9 | 55.0 | 84.2 | |||||||||
Other, net | (59.7 | ) | (37.1 | ) | (30.4 | ) | ||||||
Operating cash flow before changes in working capital | 541.3 | 586.1 | 522.7 | |||||||||
Changes in assets and liabilities used in operations, net of effects of | ||||||||||||
business acquisitions: | ||||||||||||
Decrease/(increase) in accounts receivable, net | 181.8 | 38.2 | (19.7 | ) | ||||||||
Decrease/(increase) in inventories | 45.1 | (17.6 | ) | 65.1 | ||||||||
Increase in other current assets | (45.8 | ) | (11.6 | ) | (33.8 | ) | ||||||
Increase/(decrease) in accounts payable | 17.5 | 47.1 | (12.0 | ) | ||||||||
Increase/(decrease) in other current liabilities | 10.1 | (10.6 | ) | (109.8 | ) | |||||||
Net cash flow from operating activities | 750.0 | 631.6 | 412.5 | |||||||||
Cash Flow from Investing Activities | ||||||||||||
Capital expenditures | (90.6 | ) | (111.0 | ) | (98.0 | ) | ||||||
Proceeds from sale of assets | 1.8 | 19.3 | 7.6 | |||||||||
Acquisitions, net of cash acquired | — | — | (267.1 | ) | ||||||||
Other, net | (0.3 | ) | (3.2 | ) | (6.0 | ) | ||||||
Net cash used by investing activities | (89.1 | ) | (94.9 | ) | (363.5 | ) | ||||||
Cash Flow from Financing Activities | ||||||||||||
Cash proceeds from issuance of debt with original maturities greater than 90 days, net of discount | — | 498.6 | 600.0 | |||||||||
Payment of debt issue cost | — | (4.3 | ) | (7.6 | ) | |||||||
Cash payments on debt with original maturities greater than 90 days | (231.5 | ) | (441.0 | ) | (576.0 | ) | ||||||
Net (decrease)/increase in debt with original maturities of 90 days or less | (63.9 | ) | 100.9 | 45.7 | ||||||||
Common stock purchased | — | (417.8 | ) | (276.0 | ) | |||||||
Cash dividends paid | (105.6 | ) | (24.9 | ) | — | |||||||
Proceeds from issuance of common stock | 18.2 | 3.0 | 8.2 | |||||||||
Excess tax benefits from share-based payments | 5.3 | 2.2 | 3.7 | |||||||||
Net cash used by financing activities | (377.5 | ) | (283.3 | ) | (202.0 | ) | ||||||
Effect of exchange rate changes on cash | (3.6 | ) | (6.1 | ) | (5.5 | ) | ||||||
Net increase/(decrease) in cash and cash equivalents | 279.8 | 247.3 | (158.5 | ) | ||||||||
Cash and cash equivalents, beginning of period | 718.5 | 471.2 | 629.7 | |||||||||
Cash and cash equivalents, end of period | $ | 998.3 | $ | 718.5 | $ | 471.2 |
DOLLARS | SHARES | ||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||
Common stock: | |||||||||||||||||||||
Balance at beginning of year | $ | 1.1 | $ | 1.1 | $ | 1.1 | 108,009 | 108,009 | 108,009 | ||||||||||||
Treasury share retirement | (0.4 | ) | — | — | (42,757 | ) | — | — | |||||||||||||
Ending balance | 0.7 | 1.1 | 1.1 | 65,252 | 108,009 | 108,009 | |||||||||||||||
Additional paid-in capital: | |||||||||||||||||||||
Balance at beginning of year | 1,621.7 | 1,593.6 | 1,569.5 | ||||||||||||||||||
Activity under stock plans | 7.2 | 28.1 | 24.1 | ||||||||||||||||||
Ending balance | 1,628.9 | 1,621.7 | 1,593.6 | ||||||||||||||||||
Retained earnings: | |||||||||||||||||||||
Balance at beginning of year | 2,993.2 | 2,613.0 | 2,353.9 | ||||||||||||||||||
Net earnings | 407.0 | 408.9 | 261.2 | ||||||||||||||||||
Dividends to shareholders | (108.1 | ) | (25.6 | ) | — | ||||||||||||||||
Treasury share retirement | (2,146.1 | ) | — | — | |||||||||||||||||
Activity under stock plans | (1.9 | ) | (3.1 | ) | (2.1 | ) | |||||||||||||||
Ending balance | 1,144.1 | 2,993.2 | 2,613.0 | ||||||||||||||||||
Common stock in treasury: | |||||||||||||||||||||
Balance at beginning of year | (2,328.7 | ) | (1,925.7 | ) | (1,667.6 | ) | (46,487 | ) | (40,933 | ) | (37,653 | ) | |||||||||
Treasury stock purchased | — | (417.8 | ) | (276.0 | ) | — | (5,924 | ) | (3,749 | ) | |||||||||||
Treasury share retirement | 2,146.5 | — | — | 42,757 | — | — | |||||||||||||||
Activity under stock plans | 35.0 | 14.8 | 17.9 | 802 | 370 | 469 | |||||||||||||||
Ending balance | (147.2 | ) | (2,328.7 | ) | (1,925.7 | ) | (2,928 | ) | (46,487 | ) | (40,933 | ) | |||||||||
Accumulated other comprehensive (loss)/income: | |||||||||||||||||||||
Cumulative translation adjustment: | |||||||||||||||||||||
Balance at beginning of year | 0.2 | 12.1 | 20.8 | ||||||||||||||||||
Foreign currency translation adjustment | 4.6 | (11.9 | ) | (8.7 | ) | ||||||||||||||||
Ending balance | 4.8 | 0.2 | 12.1 | ||||||||||||||||||
Pension/postretirement liability: | |||||||||||||||||||||
Balance at beginning of year | (213.9 | ) | (189.1 | ) | (162.7 | ) | |||||||||||||||
Pension/postretirement activity | 35.7 | (24.8 | ) | (26.4 | ) | ||||||||||||||||
Ending balance, net of tax of $(94.9) in 2013, $(113.8) in 2012 and $(99.3) in 2011 | (178.2 | ) | (213.9 | ) | (189.1 | ) | |||||||||||||||
Deferred (loss)/gain on hedging activity: | |||||||||||||||||||||
Balance at beginning of year | (4.1 | ) | (3.7 | ) | (15.4 | ) | |||||||||||||||
Activity | 4.6 | (0.4 | ) | 11.7 | |||||||||||||||||
Ending balance, net of tax of $1.0 in 2013, $(2.1) in 2012 and $(3.7) in 2011 | 0.5 | (4.1 | ) | (3.7 | ) | ||||||||||||||||
Total accumulated other comprehensive loss | (172.9 | ) | (217.8 | ) | (180.7 | ) | |||||||||||||||
Total shareholders' equity | $ | 2,453.6 | $ | 2,069.5 | $ | 2,101.3 |
• | Reduce global workforce by more than 10%, or approximately 1,500 colleagues; |
• | Rationalize and streamline operations facilities in the Household Products Division; |
• | Consolidate G&A functional support across the organization; |
• | Streamline the Household Products Division product portfolio to enable increased focus on our core battery and portable lighting businesses; |
• | Streamline the marketing organization within our Household Products Division; |
• | Optimize our go-to-market strategies and organization structures within our international markets; |
• | Reduce overhead spending, including changes to benefit programs and other targeted spending reductions; and |
• | Create a center-led purchase function to drive procurement savings. |
• | Non-cash asset impairment charges of $19.3 and accelerated depreciation charges of $23.6 for the twelve months ended September 30, 2013, (collectively for the twelve months, $42.9) related primarily to completed and upcoming plant closures, |
• | Severance and related benefit costs of $49.3 for the twelve months ended September 30, 2013, associated with staffing reductions that have been identified to date, and |
• | Consulting, program management and other charges associated with the restructuring of $47.1 for the twelve months ended September 30, 2013. |
• | Approximately $10-$20 related to plant closure and accelerated depreciation charges, |
• | Approximately $40-$50 related to severance and related benefit costs, |
• | Approximately $20-$30 related to consulting and program management, and |
• | Approximately $5-$15 related to other restructuring related costs. |
• | Non-cash impairment and accelerated depreciation charges of approximately $43 for the twelve months ended September 30, 2013, would be fully allocated to our Household Products segment. |
• | Severance and related benefit costs of approximately $42 for the twelve months ended September 30, 2013, would be allocated to our Household Products segment. Charges of approximately $6 for the twelve months ended September 30, 2013, would be allocated to our Personal Care segment. The remaining charges of approximately $1 for the twelve months ended September 30, 2013, would be allocated to Corporate. As certain headcount provides services to both segments, charges for severance and related benefits for such headcount requires an allocation. |
• | Consulting, program management and other exit costs of approximately $36 for the twelve months ended September 30, 2013, would be allocated to our Household Products segment. Charges of approximately $9 for the twelve months ended September 30, 2013, would be allocated to our Personal Care segment. The remaining charges of approximately $2 for the twelve months ended September 30, 2013, would be allocated to Corporate. |
Utilized | ||||||||||||||||||
October 1, 2012 | Charge to Income | Other (a) | Cash | Non-Cash | September 30, 2013 | |||||||||||||
Severance & Termination Related Costs | $ | — | $ | 49.3 | $ | (0.1 | ) | $ | (32.9 | ) | $ | — | $ | 16.3 | ||||
Asset Impairment/Accelerated Depreciation | — | 42.9 | — | — | (42.9 | ) | — | |||||||||||
Other Costs | 2.8 | 47.1 | — | (45.6 | ) | — | 4.3 | |||||||||||
Total | $ | 2.8 | $ | 139.3 | $ | (0.1 | ) | $ | (78.5 | ) | $ | (42.9 | ) | $ | 20.6 |
Household Products | Personal Care | Total | ||||||||||
Balance at October 1, 2012 | $ | 37.3 | $ | 1,432.2 | $ | 1,469.5 | ||||||
Cumulative translation adjustment | (0.1 | ) | 6.4 | 6.3 | ||||||||
Balance at September 30, 2013 | $ | 37.2 | $ | 1,438.6 | $ | 1,475.8 |
Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||
Tradenames / Brands | $ | 18.9 | $ | 12.8 | $ | 6.1 | ||||||
Technology and patents | 75.6 | 56.5 | 19.1 | |||||||||
Customer-related / Other | 163.6 | 57.2 | 106.4 | |||||||||
Total amortizable intangible assets | $ | 258.1 | $ | 126.5 | $ | 131.6 |
2013 | 2012 | 2011 | |||||||||
Currently payable: | |||||||||||
United States - Federal | $ | 45.1 | $ | 72.8 | $ | 34.0 | |||||
State | 6.4 | 6.5 | 4.6 | ||||||||
Foreign | 66.1 | 80.1 | 79.8 | ||||||||
Total current | 117.6 | 159.4 | 118.4 | ||||||||
Deferred: | |||||||||||
United States - Federal | 37.0 | (2.9 | ) | 36.4 | |||||||
State | 2.4 | (0.2 | ) | 2.4 | |||||||
Foreign | 3.9 | 0.2 | (12.4 | ) | |||||||
Total deferred | 43.3 | (2.9 | ) | 26.4 | |||||||
Provision for income taxes | $ | 160.9 | $ | 156.5 | $ | 144.8 |
2013 | 2012 | 2011 | |||||||||
United States | $ | 247.3 | $ | 178.3 | $ | 191.6 | |||||
Foreign | 320.6 | 387.1 | 214.4 | ||||||||
Pre-tax earnings | $ | 567.9 | $ | 565.4 | $ | 406.0 |
2013 | 2012 | 2011 | ||||||||||||||||||
Computed tax at federal statutory rate | $ | 198.8 | 35.0 | % | $ | 197.9 | 35.0 | % | $ | 142.1 | 35.0 | % | ||||||||
State income taxes, net of federal tax benefit | 5.5 | 1.0 | 4.1 | 0.7 | 4.5 | 1.1 | ||||||||||||||
Foreign tax less than the federal rate | (47.1 | ) | (8.3 | ) | (55.6 | ) | (9.8 | ) | (15.9 | ) | (3.9 | ) | ||||||||
Adjustments to prior years' tax accruals | (8.3 | ) | (1.5 | ) | (7.0 | ) | (1.2 | ) | (1.7 | ) | (0.4 | ) | ||||||||
Other taxes including repatriation of foreign earnings | 17.4 | 3.1 | 16.2 | 2.9 | 15.3 | 3.8 | ||||||||||||||
Nontaxable share option | (5.4 | ) | (1.0 | ) | (2.0 | ) | (0.4 | ) | 0.2 | — | ||||||||||
Other, net | — | — | 2.9 | 0.5 | 0.3 | 0.1 | ||||||||||||||
Total | $ | 160.9 | 28.3 | % | $ | 156.5 | 27.7 | % | $ | 144.8 | 35.7 | % |
2013 | 2012 | |||||||
Deferred tax liabilities: | ||||||||
Depreciation and property differences | $ | (83.8 | ) | $ | (101.1 | ) | ||
Intangible assets | (580.7 | ) | (574.3 | ) | ||||
Other tax liabilities | (8.5 | ) | (6.4 | ) | ||||
Gross deferred tax liabilities | (673.0 | ) | (681.8 | ) | ||||
Deferred tax assets: | ||||||||
Accrued liabilities | 104.4 | 105.7 | ||||||
Deferred and stock-related compensation | 102.5 | 103.6 | ||||||
Tax loss carryforwards and tax credits | 10.4 | 13.9 | ||||||
Intangible assets | 17.1 | 17.3 | ||||||
Postretirement benefits other than pensions | 2.6 | 11.6 | ||||||
Pension plans | 81.3 | 155.3 | ||||||
Inventory differences | 28.6 | 31.7 | ||||||
Other tax assets | 5.6 | 6.6 | ||||||
Gross deferred tax assets | 352.5 | 445.7 | ||||||
Valuation allowance | (9.5 | ) | (11.9 | ) | ||||
Net deferred tax liabilities | $ | (330.0 | ) | $ | (248.0 | ) |
2013 | 2012 | |||||||
Unrecognized tax benefits, beginning of year | $ | 41.0 | $ | 41.2 | ||||
Additions based on current year tax positions and acquisitions | 3.4 | 3.3 | ||||||
Reductions for prior year tax positions | (0.3 | ) | (0.8 | ) | ||||
Settlements with taxing authorities/statute expirations | (6.8 | ) | (2.7 | ) | ||||
Unrecognized tax benefits, end of year | $ | 37.3 | $ | 41.0 |
(in millions, except per share data) | FOR THE YEARS ENDED SEPTEMBER 30, | |||||||||||
2013 | 2012 | 2011 | ||||||||||
Numerator: | ||||||||||||
Net earnings for basic and dilutive earnings per share | $ | 407.0 | $ | 408.9 | $ | 261.2 | ||||||
Denominator: | ||||||||||||
Weighted-average shares - basic | 62.1 | 64.9 | 69.6 | |||||||||
Effect of dilutive securities: | ||||||||||||
Stock options | 0.1 | 0.2 | 0.2 | |||||||||
Restricted stock equivalents | 0.7 | 0.6 | 0.5 | |||||||||
Total dilutive securities | 0.8 | 0.8 | 0.7 | |||||||||
Weighted-average shares - diluted | 62.9 | 65.7 | 70.3 | |||||||||
Basic net earnings per share | $ | 6.55 | $ | 6.30 | $ | 3.75 | ||||||
Diluted net earnings per share | $ | 6.47 | $ | 6.22 | $ | 3.72 |
Shares | Weighted-Average Exercise Price | |||||
Outstanding on October 1, 2012 | 0.64 | $51.59 | ||||
Canceled | (0.02 | ) | 31.95 | |||
Exercised | (0.38 | ) | 47.38 | |||
Outstanding on September 30, 2013 | 0.24 | $59.57 | ||||
Exercisable on September 30, 2013 | 0.24 | $59.57 |
Shares | Weighted-Average Grant Date Estimated Fair Value | |||||
Nonvested RSE at October 1, 2012 | 1.96 | $70.38 | ||||
Granted | 0.50 | 84.33 | ||||
Vested | (0.62 | ) | 67.92 | |||
Canceled | (0.20 | ) | 69.10 | |||
Nonvested RSE at September 30, 2013 | 1.64 | $75.75 |
September 30, | ||||||||||||||||
Pension | Postretirement | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Change in Projected Benefit Obligation | ||||||||||||||||
Benefit obligation at beginning of year | $ | 1,396.9 | $ | 1,261.5 | $ | 39.7 | $ | 50.5 | ||||||||
Service cost | 27.1 | 26.7 | 0.4 | 0.5 | ||||||||||||
Interest cost | 48.5 | 55.8 | 1.4 | 2.3 | ||||||||||||
Plan participants' contributions | 0.3 | 0.4 | 2.8 | 5.6 | ||||||||||||
Actuarial loss/(gain) | (68.5 | ) | 124.1 | (0.2 | ) | (2.9 | ) | |||||||||
Benefits paid, net | (87.4 | ) | (71.7 | ) | (5.8 | ) | (8.1 | ) | ||||||||
Plan amendments | — | — | (3.3 | ) | (8.9 | ) | ||||||||||
Plan curtailments | (6.0 | ) | — | (25.2 | ) | — | ||||||||||
Plan settlements | (6.4 | ) | — | — | — | |||||||||||
Foreign currency exchange rate changes | 3.8 | 0.1 | (0.4 | ) | 0.7 | |||||||||||
Projected Benefit Obligation at end of year | $ | 1,308.3 | $ | 1,396.9 | $ | 9.4 | $ | 39.7 | ||||||||
Change in Plan Assets | ||||||||||||||||
Estimated fair value of plan assets at beginning of year | $ | 937.2 | $ | 815.0 | $ | 0.4 | $ | 0.7 | ||||||||
Actual return on plan assets | 103.9 | 125.9 | — | — | ||||||||||||
Company contributions | 66.1 | 63.2 | 2.6 | 2.2 | ||||||||||||
Plan participants' contributions | 0.3 | 0.4 | 2.8 | 5.6 | ||||||||||||
Plan settlements | (6.4 | ) | — | — | — | |||||||||||
Benefits paid | (87.4 | ) | (71.7 | ) | (5.8 | ) | (8.1 | ) | ||||||||
Foreign currency exchange rate changes | (1.4 | ) | 4.4 | — | — | |||||||||||
Estimated fair value of plan assets at end of year | $ | 1,012.3 | $ | 937.2 | $ | — | $ | 0.4 | ||||||||
Funded status at end of year | $ | (296.0 | ) | $ | (459.7 | ) | $ | (9.4 | ) | $ | (39.3 | ) |
September 30, | ||||||||||||||||
Pension | Postretirement | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Amounts Recognized in the Consolidated Balance Sheets | ||||||||||||||||
Noncurrent assets | $ | 13.6 | $ | 3.8 | $ | — | $ | — | ||||||||
Current liabilities | (6.6 | ) | (7.9 | ) | (1.7 | ) | (2.4 | ) | ||||||||
Noncurrent liabilities | (303.0 | ) | (455.6 | ) | (7.7 | ) | (36.9 | ) | ||||||||
Net amount recognized | $ | (296.0 | ) | $ | (459.7 | ) | $ | (9.4 | ) | $ | (39.3 | ) | ||||
Amounts Recognized in Accumulated Other Comprehensive Loss | ||||||||||||||||
Net loss/(gain) | $ | 269.5 | $ | 411.4 | $ | (2.2 | ) | $ | (24.9 | ) | ||||||
Prior service cost/(credit) | 0.5 | (37.1 | ) | 0.1 | (26.5 | ) | ||||||||||
Net amount recognized, pre-tax | $ | 270.0 | $ | 374.3 | $ | (2.1 | ) | $ | (51.4 | ) |
Pension | Postretirement | |||||||
Changes in plan assets and benefit obligations recognized in other comprehensive loss | ||||||||
Prior service cost from plan recent amendment | $ | — | $ | (3.3 | ) | |||
Net gain/loss arising during the year | (111.0 | ) | 0.4 | |||||
Effect of exchange rates | 0.2 | 0.1 | ||||||
Amounts recognized as a component of net periodic benefit cost | ||||||||
Amortization or curtailment recognition of prior service credit | 37.6 | 29.9 | ||||||
Amortization or settlement recognition of net gain/loss | (31.1 | ) | 22.6 | |||||
Total recognized in other comprehensive income | $ | (104.3 | ) | $ | 49.7 |
For The Years Ending September 30, | ||||||||
Pension | Postretirement | |||||||
2014 | $ | 79.7 | $ | 1.7 | ||||
2015 | $ | 81.9 | $ | 0.3 | ||||
2016 | $ | 85.2 | $ | 0.3 | ||||
2017 | $ | 86.3 | $ | 0.4 | ||||
2018 | $ | 90.5 | $ | 0.4 | ||||
2019 to 2023 | $ | 458.5 | $ | 2.0 |
September 30, | ||||||||
2013 | 2012 | |||||||
Projected benefit obligation | $ | 1,178.1 | $ | 1,270.1 | ||||
Accumulated benefit obligation | $ | 1,162.6 | $ | 1,254.0 | ||||
Estimated fair value of plan assets | $ | 868.5 | $ | 810.0 |
FOR THE YEARS ENDED SEPTEMBER 30, | ||||||||||||||||||||||||
Pension | Postretirement | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Service cost | $ | 27.1 | $ | 26.7 | $ | 28.9 | $ | 0.4 | $ | 0.5 | $ | 0.5 | ||||||||||||
Interest cost | 48.5 | 55.8 | 55.9 | 1.4 | 2.3 | 2.7 | ||||||||||||||||||
Expected return on plan assets | (67.4 | ) | (63.0 | ) | (63.3 | ) | — | — | — | |||||||||||||||
Amortization of unrecognized prior service cost | (0.2 | ) | (5.5 | ) | (5.6 | ) | (3.7 | ) | (2.6 | ) | (2.7 | ) | ||||||||||||
Amortization of unrecognized transition asset | — | — | 0.2 | — | — | — | ||||||||||||||||||
Recognized net actuarial loss/(gain) | 28.9 | 20.3 | 14.5 | (2.0 | ) | (2.1 | ) | (1.3 | ) | |||||||||||||||
Curtailment/other (gain)/loss recognized | (37.4 | ) | — | 0.9 | (72.2 | ) | — | — | ||||||||||||||||
Special termination benefits recognized | — | — | 9.6 | — | — | — | ||||||||||||||||||
Settlement loss recognized | 2.2 | 2.0 | 5.2 | — | — | — | ||||||||||||||||||
Net periodic benefit cost | $ | 1.7 | $ | 36.3 | $ | 46.3 | $ | (76.1 | ) | $ | (1.9 | ) | $ | (0.8 | ) |
Pension | Postretirement | |||||||
Net actuarial (loss)/gain | $ | (18.6 | ) | $ | 0.1 | |||
Prior service cost | $ | (0.3 | ) | $ | — |
September 30, | ||||||||||||
Pension | Postretirement | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Plan obligations: | ||||||||||||
Discount rate | 4.3 | % | 3.6 | % | 4.9 | % | 3.9 | % | ||||
Compensation increase rate | 2.5 | % | 2.5 | % | N/A | N/A | ||||||
Net periodic benefit cost: | ||||||||||||
Discount rate | 3.6 | % | 4.6 | % | 3.9 | % | 4.8 | % | ||||
Expected long-term rate of return on plan assets | 7.3 | % | 7.3 | % | 3.0 | % | 3.0 | % | ||||
Compensation increase rate | 2.5 | % | 2.7 | % | N/A | N/A |
2013 Pension Assets | ||||||||||||
ASSETS AT ESTIMATED FAIR VALUE | Level 1 | Level 2 | Total | |||||||||
EQUITY | ||||||||||||
U.S. Equity | $ | 259.7 | $ | 91.4 | $ | 351.1 | ||||||
International Equity | 17.5 | 292.0 | 309.5 | |||||||||
DEBT | ||||||||||||
U.S. Gov't | — | 253.5 | 253.5 | |||||||||
Other Gov't | — | 25.2 | 25.2 | |||||||||
Corporate | — | 29.4 | 29.4 | |||||||||
CASH & CASH EQUIVALENTS | 1.7 | 36.1 | 37.8 | |||||||||
OTHER | — | 5.8 | 5.8 | |||||||||
TOTAL | $ | 278.9 | $ | 733.4 | $ | 1,012.3 |
2012 Pension Assets | ||||||||||||
ASSETS AT ESTIMATED FAIR VALUE | Level 1 | Level 2 | Total | |||||||||
EQUITY | ||||||||||||
U.S. Equity | $ | 259.1 | $ | 51.9 | $ | 311.0 | ||||||
International Equity | 15.3 | 248.3 | 263.6 | |||||||||
DEBT | ||||||||||||
U.S. Gov't | — | 294.8 | 294.8 | |||||||||
Other Gov't | — | 8.8 | 8.8 | |||||||||
Corporate | — | 49.2 | 49.2 | |||||||||
CASH & CASH EQUIVALENTS | 1.3 | — | 1.3 | |||||||||
OTHER | — | 8.5 | 8.5 | |||||||||
TOTAL | $ | 275.7 | $ | 661.5 | $ | 937.2 |
2013 | 2012 | |||||||
Private Placement, fixed interest rates ranging from 5.2% to 6.6%, due 2013 to 2017 | $ | 1,040.0 | $ | 1,165.0 | ||||
Senior Notes, fixed interest rate of 4.7%, due 2021 | 600.0 | 600.0 | ||||||
Senior Notes, fixed interest rate of 4.7%, due 2022, net of discount | 498.8 | 498.6 | ||||||
Term Loan, repaid in December 2012 | — | 106.5 | ||||||
Total long-term debt, including current maturities | 2,138.8 | 2,370.1 | ||||||
Less current portion | 140.0 | 231.5 | ||||||
Total long-term debt | $ | 1,998.8 | $ | 2,138.6 |
At September 30, 2013 | For the Year Ended September 30, 2013 | |||||||||||
Derivatives designated as Cash Flow Hedging Relationships | Estimated Fair Value Asset(Liability) (1) (2) | Gain/(Loss) Recognized in OCI(3) | Gain/(Loss) Reclassified From OCI into Income (Effective Portion) (4) (5) | |||||||||
Foreign currency contracts | $ | 1.5 | $ | 18.1 | $ | 10.7 | ||||||
Interest rate contracts | — | — | (0.3 | ) | ||||||||
Total | $ | 1.5 | $ | 18.1 | $ | 10.4 |
At September 30, 2012 | For the Year Ended September 30, 2012 | |||||||||||
Derivatives designated as Cash Flow Hedging Relationships | Estimated Fair Value Asset(Liability) (1) (2) | Gain/(Loss) Recognized in OCI(3) | Gain/(Loss) Reclassified From OCI into Income (Effective Portion) (4) (5) | |||||||||
Foreign currency contracts | $ | (5.9 | ) | $ | (10.0 | ) | $ | (0.8 | ) | |||
Commodity contracts | — | — | (6.0 | ) | ||||||||
Interest rate contracts | (0.3 | ) | 2.7 | (1.7 | ) | |||||||
Total | $ | (6.2 | ) | $ | (7.3 | ) | $ | (8.5 | ) |
(1) | All derivative assets are presented in other current assets or other assets. |
(2) | All derivative liabilities are presented in other current liabilities or other liabilities. |
(3) | OCI is defined as other comprehensive income. |
(4) | Gain/(Loss) reclassified to Income was recorded as follows: Foreign currency contracts and ineffective commodity contract in other financing items, net, effective commodity contracts in Cost of products sold. |
(5) | Each of these derivative instruments has a high correlation to the underlying exposure being hedged and has been deemed highly effective in offsetting associated risk. The ineffective portion for foreign currency and interest rate contracts recognized in income was insignificant to the twelve months ended September 30, 2013. In September 2012, the Company discontinued hedge accounting treatment for its zinc contracts as the contracts no longer correlated to the underlying zinc exposure being hedged. Included within the net loss above is a $1.6 gain for the ineffective portion that was de-designated and reclassified from OCI into income at September 30, 2012. This gain has been included in the table below for derivatives not designated as cash flow hedges. |
At September 30, 2013 | For the Year Ended September 30, 2013 | |||||||
Derivatives not designated as Cash Flow Hedging Relationships | Estimated Fair Value Asset (Liability) | Gain/(Loss) Recognized in Income (1) | ||||||
Share option | $ | 7.7 | $ | 15.5 | ||||
Commodity contracts (2) | — | (1.9 | ) | |||||
Foreign currency contracts | (3.2 | ) | 4.9 | |||||
Total | $ | 4.5 | $ | 18.5 |
At September 30, 2012 | For the Year Ended September 30, 2012 | |||||||
Derivatives not designated as Cash Flow Hedging Relationships | Estimated Fair Value Asset (Liability) | Gain/(Loss) Recognized in Income (1) | ||||||
Share option | $ | 2.5 | $ | 6.1 | ||||
Commodity contracts (2) | 1.6 | 1.6 | ||||||
Foreign currency contracts | (0.7 | ) | (1.9 | ) | ||||
Total | $ | 3.4 | $ | 5.8 |
Level 2 | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
Assets/(Liabilities) at estimated fair value: | ||||||||
Deferred Compensation | $ | (167.6 | ) | $ | (161.6 | ) | ||
Derivatives - Foreign Currency contracts | (1.7 | ) | (6.6 | ) | ||||
Derivatives - Commodity contracts | — | 1.6 | ||||||
Derivatives - Interest rate contracts | — | (0.3 | ) | |||||
Share Option | 7.7 | 2.5 | ||||||
Total Liabilities at estimated fair value | $ | (161.6 | ) | $ | (164.4 | ) |
2013 | 2012 | |||||||
Inventories | ||||||||
Raw materials and supplies | $ | 95.2 | $ | 100.7 | ||||
Work in process | 150.2 | 141.2 | ||||||
Finished products | 370.9 | 430.5 | ||||||
Total inventories | $ | 616.3 | $ | 672.4 | ||||
Other Current Assets | ||||||||
Miscellaneous receivables | $ | 56.7 | $ | 81.5 | ||||
Deferred income tax benefits | 211.7 | 207.0 | ||||||
Prepaid expenses | 87.5 | 90.0 | ||||||
Value added tax collectible from customers | 57.6 | 53.5 | ||||||
Share option | 7.7 | 2.5 | ||||||
Income tax receivable | 31.1 | — | ||||||
Other | 20.9 | 20.5 | ||||||
Total other current assets | $ | 473.2 | $ | 455.0 | ||||
Property, plant and equipment | ||||||||
Land | $ | 39.1 | $ | 39.0 | ||||
Buildings | 283.9 | 278.2 | ||||||
Machinery and equipment | 1,799.2 | 1,775.7 | ||||||
Construction in progress | 63.7 | 75.6 | ||||||
Total gross property | 2,185.9 | 2,168.5 | ||||||
Accumulated depreciation | (1,430.3 | ) | (1,320.0 | ) | ||||
Total property, plant and equipment, net | $ | 755.6 | $ | 848.5 | ||||
Other Current Liabilities | ||||||||
Accrued advertising, sales promotion and allowances | $ | 100.3 | $ | 70.1 | ||||
Accrued trade allowances | 93.1 | 101.4 | ||||||
Accrued salaries, vacations and incentive compensation | 112.0 | 115.9 | ||||||
Income taxes payable | — | 25.2 | ||||||
Returns reserve | 49.8 | 52.8 | ||||||
2013 restructuring reserve | 20.6 | 2.8 | ||||||
Other | 198.2 | 220.2 | ||||||
Total other current liabilities | $ | 574.0 | $ | 588.4 | ||||
Other Liabilities | ||||||||
Pensions and other retirement benefits | $ | 315.9 | $ | 506.0 | ||||
Deferred compensation | 167.8 | 161.9 | ||||||
Deferred income tax liabilities | 541.7 | 455.0 | ||||||
Other non-current liabilities | 86.2 | 92.7 | ||||||
Total other liabilities | $ | 1,111.6 | $ | 1,215.6 |
Allowance for Doubtful Accounts | 2013 | 2012 | 2011 | |||||||||
Balance at beginning of year | $ | 15.9 | $ | 15.9 | $ | 13.2 | ||||||
Impact of acquisition | — | — | 0.8 | |||||||||
Provision charged to expense, net of reversals | (0.3 | ) | 2.2 | 4.6 | ||||||||
Write-offs, less recoveries, translation, other | 0.4 | (2.2 | ) | (2.7 | ) | |||||||
Balance at end of year | $ | 16.0 | $ | 15.9 | $ | 15.9 |
Income Tax Valuation Allowance | 2013 | 2012 | 2011 | |||||||||
Balance at beginning of year | $ | 11.9 | $ | 12.6 | $ | 11.0 | ||||||
Provision charged to expense | 0.5 | — | 11.4 | |||||||||
Reversal of provision charged to expense | (0.2 | ) | (0.8 | ) | (4.6 | ) | ||||||
Write-offs, translation, other | (2.7 | ) | 0.1 | (5.2 | ) | |||||||
Balance at end of year | $ | 9.5 | $ | 11.9 | $ | 12.6 |
Supplemental Disclosure of Cash Flow Information | 2013 | 2012 | 2011 | |||||||||
Interest paid, including cost of early debt retirement | $ | 126.5 | $ | 117.5 | $ | 141.8 | ||||||
Income taxes paid | $ | 142.2 | $ | 113.0 | $ | 206.4 |
Net Sales | 2013 | 2012 | 2011 | |||||||||
Personal Care | $ | 2,448.9 | $ | 2,479.5 | $ | 2,449.7 | ||||||
Household Products | 2,017.1 | 2,087.7 | 2,196.0 | |||||||||
Total net sales | $ | 4,466.0 | $ | 4,567.2 | $ | 4,645.7 | ||||||
2013 | 2012 | 2011 | ||||||||||
Personal Care | $ | 475.2 | $ | 470.7 | $ | 408.4 | ||||||
Household Products | 440.6 | 400.2 | 410.6 | |||||||||
Total segment profit | 915.8 | 870.9 | 819.0 | |||||||||
General corporate and other expenses | (141.5 | ) | (151.7 | ) | (119.9 | ) | ||||||
2013 restructuring (1) | (150.6 | ) | (7.3 | ) | — | |||||||
Net pension/post-retirement gains | 107.6 | — | — | |||||||||
Prior restructuring | — | 6.8 | (79.0 | ) | ||||||||
Acquisition inventory valuation | — | — | (7.0 | ) | ||||||||
ASR integration/transaction costs | (2.5 | ) | (8.4 | ) | (13.5 | ) | ||||||
Amortization of intangibles | (20.1 | ) | (22.7 | ) | (21.3 | ) | ||||||
Venezuela devaluation/other impacts | (6.3 | ) | — | (1.8 | ) | |||||||
Cost of early debt retirements | — | — | (19.9 | ) | ||||||||
Interest and other financing items | (134.5 | ) | (122.2 | ) | (150.6 | ) | ||||||
Total earnings before income taxes | $ | 567.9 | $ | 565.4 | $ | 406.0 | ||||||
Depreciation and Amortization | ||||||||||||
Personal Care | $ | 72.7 | $ | 82.0 | $ | 78.9 | ||||||
Household Products | 53.3 | 54.7 | 63.5 | |||||||||
Total segment depreciation and amortization | 126.0 | 136.7 | 142.4 | |||||||||
Corporate | 61.4 | 25.5 | 38.9 | |||||||||
Total depreciation and amortization | $ | 187.4 | $ | 162.2 | $ | 181.3 | ||||||
Total Assets | ||||||||||||
Personal Care | $ | 1,208.3 | $ | 1,278.4 | ||||||||
Household Products | 1,033.0 | 1,134.4 | ||||||||||
Total segment assets | 2,241.3 | 2,412.8 | ||||||||||
Corporate | 1,164.8 | 995.2 | ||||||||||
Goodwill and other intangible assets, net | 3,311.3 | 3,323.2 | ||||||||||
Total assets | $ | 6,717.4 | $ | 6,731.2 | ||||||||
Capital Expenditures | ||||||||||||
Personal Care | $ | 54.3 | $ | 58.3 | $ | 61.0 | ||||||
Household Products | 17.8 | 38.1 | 36.6 | |||||||||
Total segment capital expenditures | 72.1 | 96.4 | 97.6 | |||||||||
Corporate | 18.5 | 14.6 | 0.4 | |||||||||
Total capital expenditures | $ | 90.6 | $ | 111.0 | $ | 98.0 |
2013 | 2012 | 2011 | ||||||||||
Net Sales to Customers | ||||||||||||
United States | $ | 2,257.5 | $ | 2,355.0 | $ | 2,341.9 | ||||||
International | 2,208.5 | 2,212.2 | 2,303.8 | |||||||||
Total net sales | $ | 4,466.0 | $ | 4,567.2 | $ | 4,645.7 | ||||||
Long-Lived Assets | ||||||||||||
United States | $ | 503.5 | $ | 581.1 | ||||||||
Germany | 79.4 | 81.5 | ||||||||||
Singapore | 86.9 | 89.8 | ||||||||||
Other International | 167.9 | 133.0 | ||||||||||
Total long-lived assets excluding goodwill and intangibles | $ | 837.7 | $ | 885.4 |
2013 | 2012 | 2011 | ||||||||||
Net Sales | ||||||||||||
Wet Shave | $ | 1,619.0 | $ | 1,644.2 | $ | 1,598.1 | ||||||
Alkaline batteries | 1,245.9 | 1,263.4 | 1,311.7 | |||||||||
Other batteries and lighting products | 771.2 | 824.3 | 884.3 | |||||||||
Skin Care | 429.0 | 430.2 | 425.6 | |||||||||
Feminine Care | 177.1 | 178.3 | 187.2 | |||||||||
Infant Care | 169.2 | 180.3 | 198.0 | |||||||||
Other personal care products | 54.6 | 46.5 | 40.8 | |||||||||
Total net sales | $ | 4,466.0 | $ | 4,567.2 | $ | 4,645.7 |
Fiscal 2013 | First | Second | Third | Fourth | ||||||||||||
Net sales | $ | 1,192.5 | $ | 1,095.9 | $ | 1,111.5 | $ | 1,066.1 | ||||||||
Gross profit | 561.6 | 530.7 | 510.4 | 501.6 | ||||||||||||
Net earnings | 129.8 | 84.9 | 87.2 | 105.1 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 2.10 | $ | 1.37 | $ | 1.40 | $ | 1.69 | ||||||||
Diluted | $ | 2.07 | $ | 1.35 | $ | 1.38 | $ | 1.66 | ||||||||
Items increasing/(decreasing) net earnings: | ||||||||||||||||
2013 restructuring (1) | $ | (30.7 | ) | $ | (24.8 | ) | $ | (19.1 | ) | $ | (23.3 | ) | ||||
Net pension/post-retirement gains | 23.5 | — | — | 44.0 | ||||||||||||
ASR integration/transaction costs | (0.6 | ) | (0.4 | ) | (0.1 | ) | (0.5 | ) | ||||||||
Other realignment/integration | (0.1 | ) | (0.2 | ) | 0.1 | (0.8 | ) | |||||||||
Venezuela devaluation/other impacts | 0.4 | (6.3 | ) | (0.2 | ) | (0.2 | ) | |||||||||
Adjustments to valuation allowances and prior years tax accruals | — | 3.0 | 7.2 | (1.9 | ) | |||||||||||
Fiscal 2012 | First | Second | Third | Fourth | ||||||||||||
Net sales | $ | 1,198.1 | $ | 1,101.8 | $ | 1,124.1 | $ | 1,143.2 | ||||||||
Gross profit | 564.5 | 517.2 | 528.8 | 527.4 | ||||||||||||
Net earnings | 143.8 | 77.9 | 70.2 | 117.0 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 2.17 | $ | 1.19 | $ | 1.08 | $ | 1.86 | ||||||||
Diluted | $ | 2.15 | $ | 1.17 | $ | 1.06 | $ | 1.84 | ||||||||
Items increasing/(decreasing) net earnings: | ||||||||||||||||
2013 restructuring | $ | — | $ | — | $ | — | $ | (4.6 | ) | |||||||
Prior restructuring | 7.6 | (1.2 | ) | (0.4 | ) | (0.3 | ) | |||||||||
ASR integration/transaction costs | (0.9 | ) | (1.5 | ) | (1.5 | ) | (1.3 | ) | ||||||||
Other realignment/integration | — | (0.2 | ) | (0.2 | ) | (0.1 | ) | |||||||||
Early termination of interest rate swap | — | — | (1.1 | ) | — | |||||||||||
Litigation provision | — | — | (8.5 | ) | 8.5 | |||||||||||
Adjustments to valuation allowances and prior years tax accruals | — | — | 4.2 | 2.8 |
Consolidating Statements of Earnings (Condensed) | |||||||||||||||
Year Ended September 30, 2013 | |||||||||||||||
Parent Company | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||
Net sales | $ | — | $ | 2,667.1 | $ | 2,367.8 | $ | (568.9 | ) | $ | 4,466.0 | ||||
Cost of products sold | — | 1,585.7 | 1,345.2 | (569.2 | ) | 2,361.7 | |||||||||
Gross profit | — | 1,081.4 | 1,022.6 | 0.3 | 2,104.3 | ||||||||||
Selling, general and administrative expense | — | 405.9 | 419.1 | — | 825.0 | ||||||||||
Advertising and sales promotion expense | — | 237.9 | 203.1 | (1.1 | ) | 439.9 | |||||||||
Research and development expense | — | 98.8 | 0.2 | — | 99.0 | ||||||||||
2013 restructuring | — | 107.9 | 31.4 | — | 139.3 | ||||||||||
Net pension/post-retirement gains | — | (107.6 | ) | — | — | (107.6 | ) | ||||||||
Interest expense/(income) | 124.7 | (0.3 | ) | 6.1 | — | 130.5 | |||||||||
Intercompany interest (income)/expense | (122.6 | ) | 122.6 | — | — | — | |||||||||
Other financing items, net | — | 3.0 | 7.3 | — | 10.3 | ||||||||||
Intercompany service fees | — | 14.1 | (14.1 | ) | — | — | |||||||||
Equity in earnings of subsidiaries | (409.8 | ) | (276.4 | ) | — | 686.2 | — | ||||||||
Earnings before income taxes | 407.7 | 475.5 | 369.5 | (684.8 | ) | 567.9 | |||||||||
Income taxes | 0.7 | 81.2 | 77.6 | 1.4 | 160.9 | ||||||||||
Net earnings | $ | 407.0 | $ | 394.3 | $ | 291.9 | $ | (686.2 | ) | $ | 407.0 | ||||
Statement of Comprehensive Income: | |||||||||||||||
Net earnings | $ | 407.0 | $ | 394.3 | $ | 291.9 | $ | (686.2 | ) | $ | 407.0 | ||||
Other comprehensive income, net of tax | $ | 44.9 | $ | 27.2 | $ | 16.4 | $ | (43.6 | ) | $ | 44.9 | ||||
Total comprehensive income | $ | 451.9 | $ | 421.5 | $ | 308.3 | $ | (729.8 | ) | $ | 451.9 |
Consolidating Statements of Earnings (Condensed) | |||||||||||||||
Year Ended September 30, 2012 | |||||||||||||||
Parent Company | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||
Net sales | $ | — | $ | 2,773.5 | $ | 2,433.3 | $ | (639.6 | ) | $ | 4,567.2 | ||||
Cost of products sold | — | 1,691.9 | 1,373.8 | (636.4 | ) | 2,429.3 | |||||||||
Gross profit | — | 1,081.6 | 1,059.5 | (3.2 | ) | 2,137.9 | |||||||||
Selling, general and administrative expense | 0.2 | 444.9 | 442.7 | — | 887.8 | ||||||||||
Advertising and sales promotion expense | — | 249.9 | 200.7 | (1.1 | ) | 449.5 | |||||||||
Research and development expense | — | 112.3 | 0.2 | — | 112.5 | ||||||||||
2013 restructuring | — | 7.3 | — | — | 7.3 | ||||||||||
Prior restructuring | — | 0.4 | (7.2 | ) | — | (6.8 | ) | ||||||||
Interest expense/(income) | 122.6 | (0.5 | ) | 5.2 | — | 127.3 | |||||||||
Intercompany interest (income)/expense | (119.5 | ) | 118.7 | 0.8 | — | — | |||||||||
Other financing items, net | — | (0.5 | ) | (4.5 | ) | (0.1 | ) | (5.1 | ) | ||||||
Intercompany service fees | — | 12.8 | (12.8 | ) | — | — | |||||||||
Equity in earnings of subsidiaries | (414.3 | ) | (315.1 | ) | — | 729.4 | — | ||||||||
Earnings before income taxes | 411.0 | 451.4 | 434.4 | (731.4 | ) | 565.4 | |||||||||
Income taxes | 2.1 | 60.2 | 96.2 | (2.0 | ) | 156.5 | |||||||||
Net earnings | $ | 408.9 | $ | 391.2 | $ | 338.2 | $ | (729.4 | ) | $ | 408.9 | ||||
Statement of Comprehensive Income: | |||||||||||||||
Net earnings | $ | 408.9 | $ | 391.2 | $ | 338.2 | $ | (729.4 | ) | $ | 408.9 | ||||
Other comprehensive loss, net of tax | $ | (37.1 | ) | $ | (23.5 | ) | $ | (28.0 | ) | $ | 51.5 | $ | (37.1 | ) | |
Total comprehensive income | $ | 371.8 | $ | 367.7 | $ | 310.2 | $ | (677.9 | ) | $ | 371.8 |
Consolidating Statements of Earnings (Condensed) | |||||||||||||||
Year Ended September 30, 2011 | |||||||||||||||
Parent Company | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||
Net sales | $ | — | $ | 2,775.2 | $ | 2,444.5 | $ | (574.0 | ) | $ | 4,645.7 | ||||
Cost of products sold | — | 1,658.4 | 1,418.4 | (576.8 | ) | 2,500.0 | |||||||||
Gross profit | — | 1,116.8 | 1,026.1 | 2.8 | 2,145.7 | ||||||||||
Selling, general and administrative expense | — | 420.4 | 435.7 | — | 856.1 | ||||||||||
Advertising and sales promotion expense | — | 285.9 | 240.8 | (2.7 | ) | 524.0 | |||||||||
Research and development expense | — | 108.2 | 0.1 | — | 108.3 | ||||||||||
Prior restructuring | — | 3.0 | 76.0 | — | 79.0 | ||||||||||
Interest expense/(income) | 137.1 | (2.4 | ) | 6.6 | — | 141.3 | |||||||||
Intercompany interest (income)/expense | (134.5 | ) | 133.7 | 0.8 | — | — | |||||||||
Other financing items, net | — | 2.0 | 29.0 | — | 31.0 | ||||||||||
Intercompany service fees | — | 10.6 | (10.6 | ) | — | — | |||||||||
Equity in earnings of subsidiaries | (271.2 | ) | (153.6 | ) | — | 424.8 | — | ||||||||
Earnings before income taxes | 268.6 | 309.0 | 247.7 | (419.3 | ) | 406.0 | |||||||||
Income taxes | 7.4 | 64.6 | 71.1 | 1.7 | 144.8 | ||||||||||
Net earnings | $ | 261.2 | $ | 244.4 | $ | 176.6 | $ | (421.0 | ) | $ | 261.2 | ||||
Statement of Comprehensive Income: | |||||||||||||||
Net earnings | $ | 261.2 | $ | 244.4 | $ | 176.6 | $ | (421.0 | ) | $ | 261.2 | ||||
Other comprehensive (loss)/income, net of tax | $ | (23.4 | ) | $ | (20.9 | ) | $ | 28.3 | $ | (7.4 | ) | $ | (23.4 | ) | |
Total comprehensive income | $ | 237.8 | $ | 223.5 | $ | 204.9 | $ | (428.4 | ) | $ | 237.8 |
Consolidating Balance Sheets (Condensed) | |||||||||||||||
September 30, 2013 | |||||||||||||||
Parent Company | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||
Assets | |||||||||||||||
Current Assets | |||||||||||||||
Cash and cash equivalents | $ | 8.0 | $ | 8.4 | $ | 981.9 | $ | — | $ | 998.3 | |||||
Trade receivables, net (a) | — | 11.8 | 468.8 | — | 480.6 | ||||||||||
Inventories | — | 334.7 | 312.7 | (31.1 | ) | 616.3 | |||||||||
Other current assets | 23.5 | 270.5 | 194.7 | (15.5 | ) | 473.2 | |||||||||
Total current assets | 31.5 | 625.4 | 1,958.1 | (46.6 | ) | 2,568.4 | |||||||||
Investment in subsidiaries | 7,007.5 | 1,920.7 | — | (8,928.2 | ) | — | |||||||||
Intercompany receivables, net (b) | — | 4,258.8 | 260.1 | (4,518.9 | ) | — | |||||||||
Intercompany notes receivable (b) | 2,180.3 | 4.5 | — | (2,184.8 | ) | — | |||||||||
Property, plant and equipment, net | — | 474.7 | 280.9 | — | 755.6 | ||||||||||
Goodwill | — | 1,104.9 | 370.9 | — | 1,475.8 | ||||||||||
Other intangible assets, net | — | 1,629.5 | 206.0 | — | 1,835.5 | ||||||||||
Other noncurrent assets | 10.2 | 13.4 | 58.5 | — | 82.1 | ||||||||||
Total assets | 9,229.5 | 10,031.9 | 3,134.5 | (15,678.5 | ) | 6,717.4 | |||||||||
Current liabilities | 184.4 | 421.3 | 572.5 | (24.8 | ) | 1,153.4 | |||||||||
Intercompany payables, net (b) | 4,518.9 | — | — | (4,518.9 | ) | — | |||||||||
Intercompany notes payable (b) | — | 2,180.3 | 4.5 | (2,184.8 | ) | — | |||||||||
Long-term debt | 1,998.8 | — | — | — | 1,998.8 | ||||||||||
Other noncurrent liabilities | 73.8 | 839.6 | 198.2 | — | 1,111.6 | ||||||||||
Total liabilities | 6,775.9 | 3,441.2 | 775.2 | (6,728.5 | ) | 4,263.8 | |||||||||
Total shareholders' equity | 2,453.6 | 6,590.7 | 2,359.3 | (8,950.0 | ) | 2,453.6 | |||||||||
Total liabilities and shareholders' equity | $ | 9,229.5 | $ | 10,031.9 | $ | 3,134.5 | $ | (15,678.5 | ) | $ | 6,717.4 |
Consolidating Balance Sheets (Condensed) | |||||||||||||||
September 30, 2012 | |||||||||||||||
Parent Company | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||
Assets | |||||||||||||||
Current Assets | |||||||||||||||
Cash and cash equivalents | $ | 4.0 | $ | 9.2 | $ | 705.3 | $ | — | $ | 718.5 | |||||
Trade receivables, net (a) (c) | — | 4.1 | 672.6 | — | 676.7 | ||||||||||
Inventories | — | 341.4 | 362.1 | (31.1 | ) | 672.4 | |||||||||
Other current assets (c) | 0.4 | 210.8 | 232.9 | 10.9 | 455.0 | ||||||||||
Total current assets | 4.4 | 565.5 | 1,972.9 | (20.2 | ) | 2,522.6 | |||||||||
Investment in subsidiaries | 6,552.5 | 1,760.8 | — | (8,313.3 | ) | — | |||||||||
Intercompany receivables, net (b) | — | 4,249.9 | 168.6 | (4,418.5 | ) | — | |||||||||
Intercompany notes receivable (b) | 2,413.3 | 22.4 | 11.0 | (2,446.7 | ) | — | |||||||||
Property, plant and equipment, net | — | 553.1 | 295.4 | — | 848.5 | ||||||||||
Goodwill | — | 1,104.9 | 364.6 | — | 1,469.5 | ||||||||||
Other intangible assets, net | — | 1,646.8 | 206.9 | — | 1,853.7 | ||||||||||
Other noncurrent assets | 12.4 | 9.7 | 14.8 | — | 36.9 | ||||||||||
Total assets | 8,982.6 | 9,913.1 | 3,034.2 | (15,198.7 | ) | 6,731.2 | |||||||||
Current liabilities (c) | 300.0 | 372.2 | 635.2 | 0.1 | 1,307.5 | ||||||||||
Intercompany payables, net (b) | 4,418.5 | — | — | (4,418.5 | ) | — | |||||||||
Intercompany notes payable (b) | — | 2,424.3 | 22.4 | (2,446.7 | ) | — | |||||||||
Long-term debt | 2,138.6 | — | — | — | 2,138.6 | ||||||||||
Other noncurrent liabilities | 56.0 | 954.7 | 204.9 | — | 1,215.6 | ||||||||||
Total liabilities | 6,913.1 | 3,751.2 | 862.5 | (6,865.1 | ) | 4,661.7 | |||||||||
Total shareholders' equity | 2,069.5 | 6,161.9 | 2,171.7 | (8,333.6 | ) | 2,069.5 | |||||||||
Total liabilities and shareholders' equity | $ | 8,982.6 | $ | 9,913.1 | $ | 3,034.2 | $ | (15,198.7 | ) | $ | 6,731.2 |
Consolidating Statements of Cash Flows (Condensed) | |||||||||||||||
Year Ended September 30, 2013 | |||||||||||||||
Parent Company | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||
Net cash flow (used by)/from operating activities | $ | (14.3 | ) | $ | 317.1 | $ | 569.7 | $ | (122.5 | ) | $ | 750.0 | |||
Cash Flow from Investing Activities | |||||||||||||||
Capital expenditures | — | (53.9 | ) | (36.7 | ) | — | (90.6 | ) | |||||||
Proceeds from sale of assets | — | — | 1.8 | — | 1.8 | ||||||||||
Proceeds from intercompany notes | 231.5 | 17.6 | 11.0 | (260.1 | ) | — | |||||||||
Intercompany receivable/payable, net | — | (100.4 | ) | (62.0 | ) | 162.4 | — | ||||||||
Payment for equity contributions | — | (0.5 | ) | — | 0.5 | — | |||||||||
Other, net | — | — | (0.3 | ) | — | (0.3 | ) | ||||||||
Net cash from/(used by) investing activities | 231.5 | (137.2 | ) | (86.2 | ) | (97.2 | ) | (89.1 | ) | ||||||
Cash Flow from Financing Activities | |||||||||||||||
Cash payments on debt with original maturities greater than 90 days | (231.5 | ) | — | — | — | (231.5 | ) | ||||||||
Net decrease in debt with original maturity days of 90 or less | — | (0.2 | ) | (63.7 | ) | — | (63.9 | ) | |||||||
Payments for intercompany notes | — | (242.5 | ) | (17.6 | ) | 260.1 | — | ||||||||
Proceeds from issuance of common stock | 18.2 | — | — | — | 18.2 | ||||||||||
Excess tax benefits from share-based payments | 5.3 | — | — | — | 5.3 | ||||||||||
Cash dividends paid | (105.6 | ) | — | — | — | (105.6 | ) | ||||||||
Intercompany receivable/payable, net | 100.4 | 62.0 | — | (162.4 | ) | — | |||||||||
Proceeds for equity contribution | — | — | 0.5 | (0.5 | ) | — | |||||||||
Payments for intercompany equity distributions | — | — | (122.5 | ) | 122.5 | — | |||||||||
Net cash (used by)/from financing activities | (213.2 | ) | (180.7 | ) | (203.3 | ) | 219.7 | (377.5 | ) | ||||||
Effect of exchange rate changes on cash | — | — | (3.6 | ) | — | (3.6 | ) | ||||||||
Net increase/(decrease) in cash and cash equivalents | 4.0 | (0.8 | ) | 276.6 | — | 279.8 | |||||||||
Cash and cash equivalents, beginning of period | 4.0 | 9.2 | 705.3 | — | 718.5 | ||||||||||
Cash and cash equivalents, end of period | $ | 8.0 | $ | 8.4 | $ | 981.9 | $ | — | $ | 998.3 |
Consolidating Statements of Cash Flows (Condensed) | |||||||||||||||
Year Ended September 30, 2012 | |||||||||||||||
Parent Company | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||
Net cash flow from/(used by) operating activities | $ | 87.4 | $ | 275.9 | $ | 327.4 | $ | (59.1 | ) | $ | 631.6 | ||||
Cash Flow from/(used by) Investing Activities | |||||||||||||||
Capital expenditures | — | (73.4 | ) | (37.6 | ) | — | (111.0 | ) | |||||||
Proceeds from sale of assets | — | 2.0 | 17.3 | — | 19.3 | ||||||||||
Proceeds from intercompany notes | 441.0 | 2.8 | — | (443.8 | ) | — | |||||||||
Payments for intercompany notes | (498.6 | ) | — | (5.0 | ) | 503.6 | — | ||||||||
Intercompany receivable/payable, net | — | (358.4 | ) | (105.0 | ) | 463.4 | — | ||||||||
Proceeds from return of capital | — | 0.7 | — | (0.7 | ) | — | |||||||||
Payment for equity contributions | — | (3.1 | ) | — | 3.1 | — | |||||||||
Other, net | — | (1.1 | ) | (2.1 | ) | — | (3.2 | ) | |||||||
Net cash (used by)/from investing activities | (57.6 | ) | (430.5 | ) | (132.4 | ) | 525.6 | (94.9 | ) | ||||||
Cash Flow from Financing Activities | |||||||||||||||
Cash proceeds from issuance of debt with original maturities greater than 90 days | 498.6 | — | — | — | 498.6 | ||||||||||
Cash payments on debt with original maturities greater than 90 days | (441.0 | ) | — | — | — | (441.0 | ) | ||||||||
Payment of debt issue cost | (4.3 | ) | — | — | — | (4.3 | ) | ||||||||
Net (decrease)/increase in debt with original maturity days of 90 or less | — | (8.1 | ) | 109.0 | — | 100.9 | |||||||||
Proceeds from intercompany notes | — | 503.6 | — | (503.6 | ) | — | |||||||||
Payments for intercompany notes | — | (441.0 | ) | (2.8 | ) | 443.8 | — | ||||||||
Common stock purchased | (417.8 | ) | — | — | — | (417.8 | ) | ||||||||
Proceeds from issuance of common stock | 3.0 | — | — | — | 3.0 | ||||||||||
Excess tax benefits from share-based payments | 2.2 | — | — | — | 2.2 | ||||||||||
Dividends paid | (24.9 | ) | — | — | — | (24.9 | ) | ||||||||
Intercompany receivable/payable, net | 358.4 | 105.0 | — | (463.4 | ) | — | |||||||||
Proceeds for equity contribution | — | — | 3.1 | (3.1 | ) | — | |||||||||
Capital contribution | — | — | (0.7 | ) | 0.7 | — | |||||||||
Payments for intercompany equity distributions | — | — | (59.1 | ) | 59.1 | — | |||||||||
Net cash (used by)/from financing activities | (25.8 | ) | 159.5 | 49.5 | (466.5 | ) | (283.3 | ) | |||||||
Effect of exchange rate changes on cash | — | — | (6.1 | ) | — | (6.1 | ) | ||||||||
Net increase in cash and cash equivalents | 4.0 | 4.9 | 238.4 | — | 247.3 | ||||||||||
Cash and cash equivalents, beginning of period | — | 4.3 | 466.9 | — | 471.2 | ||||||||||
Cash and cash equivalents, end of period | $ | 4.0 | $ | 9.2 | $ | 705.3 | $ | — | $ | 718.5 |
Consolidating Statements of Cash Flows (Condensed) | |||||||||||||||
Year Ended September 30, 2011 | |||||||||||||||
Parent Company | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||
Net cash flow from/(used by) operating activities | $ | 5.5 | $ | 298.3 | $ | 232.8 | $ | (124.1 | ) | $ | 412.5 | ||||
Cash Flow from/(used by) Investing Activities | |||||||||||||||
Capital expenditures | — | (55.4 | ) | (42.6 | ) | — | (98.0 | ) | |||||||
Proceeds from sale of assets | — | 5.0 | 2.6 | — | 7.6 | ||||||||||
Acquisitions, net of cash acquired | (301.0 | ) | 11.1 | 22.8 | — | (267.1 | ) | ||||||||
Proceeds for intercompany notes | 576.0 | 38.0 | — | (614.0 | ) | — | |||||||||
Payments for intercompany notes | (600.0 | ) | — | — | 600.0 | — | |||||||||
Intercompany receivable/payable, net | — | (355.7 | ) | (35.0 | ) | 390.7 | — | ||||||||
Proceeds from return of capital | — | 4.0 | — | (4.0 | ) | — | |||||||||
Payment for equity contributions | — | (12.8 | ) | — | 12.8 | — | |||||||||
Other, net | — | (4.8 | ) | (1.2 | ) | — | (6.0 | ) | |||||||
Net cash (used by)/from investing activities | (325.0 | ) | (370.6 | ) | (53.4 | ) | 385.5 | (363.5 | ) | ||||||
Cash Flow from Financing Activities | |||||||||||||||
Cash proceeds from issuance of debt with original maturities greater than 90 days | 600.0 | — | — | — | 600.0 | ||||||||||
Cash payments on debt with original maturities greater than 90 days | (576.0 | ) | — | — | — | (576.0 | ) | ||||||||
Payment of debt issue cost | (7.6 | ) | — | — | — | (7.6 | ) | ||||||||
Net decrease in debt with original maturity days of 90 or less | — | 15.1 | 30.6 | — | 45.7 | ||||||||||
Proceeds from intercompany notes | — | 600.0 | — | (600.0 | ) | — | |||||||||
Payments for intercompany notes | — | (576.0 | ) | (38.0 | ) | 614.0 | — | ||||||||
Common stock purchased | (276.0 | ) | — | — | — | (276.0 | ) | ||||||||
Proceeds from issuance of common stock | 8.2 | — | — | — | 8.2 | ||||||||||
Excess tax benefits from share-based payments | 3.7 | — | — | — | 3.7 | ||||||||||
Intercompany receivable/payable, net | 355.7 | 35.0 | — | (390.7 | ) | — | |||||||||
Proceeds for equity contribution | — | — | 12.8 | (12.8 | ) | — | |||||||||
Capital contribution | — | — | (4.0 | ) | 4.0 | — | |||||||||
Payments for intercompany equity distributions | — | — | (124.1 | ) | 124.1 | — | |||||||||
Net cash from/(used by) financing activities | 108.0 | 74.1 | (122.7 | ) | (261.4 | ) | (202.0 | ) | |||||||
Effect of exchange rate changes on cash | — | — | (5.5 | ) | — | (5.5 | ) | ||||||||
Net (decrease)/increase in cash and cash equivalents | (211.5 | ) | 1.8 | 51.2 | — | (158.5 | ) | ||||||||
Cash and cash equivalents, beginning of period | 211.5 | 2.5 | 415.7 | — | 629.7 | ||||||||||
Cash and cash equivalents, end of period | $ | — | $ | 4.3 | $ | 466.9 | $ | — | $ | 471.2 |
Subsidiary Name | Jurisdictions of Incorporation | Percentage of Control | |
Energizer Argentina S.A. | Argentina | 100% | |
Energizer Australia Pty. Ltd. | Australia | 100% | |
American Safety Razor Australia PTY Limited | Australia | 100% | |
Energizer Group Austria Handels GmbH | Austria | 100% | |
Energizer Sales Ltd. | Barbados | 100% | |
Personna International Limited | Barbados | 100% | |
Energizer Group Belgium N.V. | Belgium | 100% | |
Energizer Insurance Company Ltd. | Bermuda | 100% | |
Energizer Group do Brasil Imp.Exp.Com.Ltd. | Brazil | 100% | |
* | Energizer do Brasil Ltda. | Brazil | 100% |
American Safety Razor do Brasil, Ltda. | Brazil | 100% | |
EPC do Brasil Comercio, Importacao e Exportacao Ltda. | Brazil | 100% | |
ASR Exportacao, Importacao, Comercio e Industria De Produtos de Barbear Ltda. | Brazil | 100% | |
Smile-Tote, Inc. | California | 100% | |
Energizer Canada Inc. | Canada | 100% | |
Energizer Cayman Islands Limited | Cayman Islands | 100% | |
Schick Cayman Islands Limited | Cayman Islands | 100% | |
Eveready de Chile S.A. | Chile | 100% | |
Energizer (China) Co., Ltd. | China | 100% | |
Schick (Guangzhou) Company Ltd. | China | 100% | |
SONCO Products (Shenzhen) Limited | China | 100% | |
Eveready de Colombia, S.A. | Colombia | 100% | |
+ | ECOBAT s.r.o. | Czech Republic | 16.66% |
Energizer Czech spol.sr.o. | Czech Republic | 100% | |
Personna International CZ s.r.o. | Czech Republic | 100% | |
Energizer Asia Pacific, Inc. | Delaware | 100% | |
EBC Batteries, Inc. | Delaware | 100% | |
Energizer ASR, LLC | Delaware | 100% | |
Energizer Battery, Inc. | Delaware | 100% | |
Energizer International, Inc. | Delaware | 100% | |
Energizer Middle East and Africa Limited | Delaware | 100% | |
Energizer (South Africa) Ltd. | Delaware | 100% | |
Eveready Battery Company, Inc. | Delaware | 100% | |
Energizer Battery Manufacturing, Inc. | Delaware | 100% | |
Energizer Personal Care, LLC | Delaware | 100% | |
Energizer Receivables Funding Corporation | Delaware | 100% | |
Energizer Group, Inc. | Delaware | 100% | |
Energizer-Schick Taiwan Ltd. | Delaware | 100% | |
Playtex Products, LLC | Delaware | 100% | |
Playtex Manufacturing, Inc. | Delaware | 100% | |
Playtex Investment Corp. | Delaware | 100% | |
Playtex Marketing Corp. | Delaware | 50% | |
Schick Manufacturing, Inc. | Delaware | 100% |
Sun Pharmaceuticals, LLC | Delaware | 100% | |
Tanning Research Laboratories, LLC | Delaware | 100% | |
TH Marketing Corp. | Delaware | 100% | |
Energizer Group Dominican Republic S.A | Dominican Republic | 100% | |
Eveready Ecuador C.A. | Ecuador | 100% | |
Energizer Egypt S.A.E. | Egypt | 70.02% | |
Schick Egypt LLC | Egypt | 100% | |
Hawaiian Tropic Europe, Inc. | Florida | 100% | |
+ | COREPILE S.A. | France | 20% |
Energizer Group France SAS | France | 100% | |
Energizer Deutschland G.m.b.H. & Co. KG | Germany | 100% Partnership | |
Energizer Finanzierungs GbR | Germany | 100% Partnership | |
Energizer Management Holding Verwaltungs GmbH | Germany | 100% | |
Wilkinson Sword GmbH | Germany | 100% | |
+ | AFIS, S.A. | Greece | 40% |
Energizer Hellas A.E. | Greece | 100% | |
Energizer Hong Kong Limited | Hong Kong | 100% | |
Eveready Hong Kong Company | Hong Kong | 100%Partnership | |
Schick Asia Limited | Hong Kong | 100% | |
Sonca Products Limited | Hong Kong | 100% | |
Energizer Hungary Trading Ltd. | Hungary | 100% | |
+ | RE'LEM Public Benefit Company | Hungary | 33.3% |
* | EBC (India) Company Private Limited | India | 100% |
* | Energizer India Private Limited | India | 100% |
PT Energizer Indonesia | Indonesia | 100% | |
Energizer Ireland Limited | Ireland | 100% | |
Personna International Israel Ltd. | Israel | 100% | |
Energizer Group Italia S.p.A. | Italy | 100% | |
Schick Japan K.K. | Japan | 100% | |
Eveready East Africa Limited | Kenya | 10.51% (Public) | |
Energizer Korea Ltd. | Korea | 100% | |
Energizer Malaysia SDN.BHD. | Malaysia | 80% | |
Eveready de Mexico S.A. de C.V. | Mexico | 100% | |
Personna International de Mexico, S.A. de C.V. | Mexico | 100% | |
Energizer Group Holland B.V. | Netherlands | 100% | |
Tropria Holding B.V. | Netherlands | 100% | |
Energizer NZ Limited | New Zealand | 100% | |
Carewell Industries, Inc. | New York | 100% | |
Energizer Group Panama, Inc. | Panama | 100% | |
Schick & Energizer Peru S.A. | Peru | 100% | |
Energizer Philippines, Inc. | Philippines | 100% | |
Energizer Group Polska Sp. zo.o | Poland | 100% | |
+ | REBA Organizacja Odzysku S.A. | Poland | 25% |
+ | ECOPILHAS LDA. | Portugal | 16.66% |
Energizer Group Portugal Unipessoal, Lda. | Portugal | 100% | |
Energizer Puerto Rico, Inc. | Puerto Rico | 100% | |
Energizer LLC | Russia | 100% | |
Energizer Singapore Pte. Ltd. | Singapore | 100% | |
Energizer Slovakia, Spol. Sr.o. | Slovak Republic | 100% | |
Energizer Group España S.A. | Spain | 100% |
Energizer Lanka Limited | Sri Lanka | 84.1% (Public) | |
Energizer Group Sweden AB | Sweden | 100% | |
Energizer SA | Switzerland | 100% | |
Energizer (Thailand) Limited | Thailand | 100% | |
Berec Overseas Investments Limited | United Kingdom | 100% | |
Energizer Trading Limited | United Kingdom | 100% | |
Energizer Holdings UK Co. Limited | United Kingdom | 100% | |
Energizer Investments UK Limited | United Kingdom | 100% | |
Energizer Group Limited | United Kingdom | 100% | |
Energizer Trust Limited | United Kingdom | 100% | |
Ever Ready Limited | United Kingdom | 100% | |
Wilkinson Sword Limited | United Kingdom | 100% | |
Personna International UK Limited | United Kingdom | 100% | |
Eveready de Venezuela, C.A. | Venezuela | 100% | |
Energizer Group Venezuela C.A. | Venezuela | 100% | |
Distribuidora Schick & Eveready, C.A. | Venezuela | 100% | |
Importadora Energizer, C.A. | Venezuela | 100% | |
Importadora Eveready, C.A. | Venezuela | 100% | |
Importadora Schick, C.A. | Venezuela | 100% | |
Schick de Venezuela, C.A. | Venezuela | 100% | |
Schick Materia Prima, C.A. | Venezuela | 100% |
1 | I have reviewed this annual report on Form 10-K of Energizer Holdings, Inc.; | ||
2 | Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||
3 | Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | ||
4 | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have: | ||
a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared; | |||
b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||
c)evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedure, as of the end of the period covered by this report based on such evaluation; and | |||
d)disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's fourth fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | |||
5 | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): | ||
a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and | |||
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. | |||
Date: November 21, 2013 | |||
/s/ Ward M. Klein | |||
Ward M. Klein | |||
Chief Executive Officer |
1 | I have reviewed this annual report on Form 10-K of Energizer Holdings, Inc.; | ||
2 | Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||
3 | Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | ||
4 | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have: | ||
a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared; | |||
b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||
c)evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedure, as of the end of the period covered by this report based on such evaluation; and | |||
d)disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's fourth fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | |||
5 | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): | ||
a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and | |||
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. | |||
Date: November 21, 2013 | |||
/s/ Daniel J. Sescleifer | |||
Daniel J. Sescleifer | |||
Executive Vice President and Chief Financial Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. |
Dated: November 21, 2013 |
/s/ Ward M. Klein |
Ward M. Klein |
Chief Executive Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. |
Dated: November 21, 2013 |
/s/ Daniel J. Sescleifer |
Daniel J. Sescleifer |
Executive Vice President and Chief Financial Officer |
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Pension Plans and Other Postretirement Benefits
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Sep. 30, 2013
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefits Disclosure [Text Block] | Pension Plans and Other Postretirement Benefits The Company has several defined benefit pension plans covering substantially all of its employees in the U.S. and certain employees in other countries. The plans provide retirement benefits based, in certain circumstances, on years of service and on earnings. In the first quarter of fiscal 2013, the Company approved and communicated changes to its U.S. pension plan, which is the most significant of the Company's pension obligations. Effective January 1, 2014, the pension benefit earned at that date by active participants under the legacy Energizer U.S. pension plans will be frozen and future service benefits will no longer be accrued under these retirement programs. For the twelve months ended September 30, 2013, the Company recorded a non-cash, pre-tax curtailment gain of $37.4 as a result of this plan change. In the fourth quarter of fiscal 2013, the Company finalized and communicated a decision to discontinue certain post-retirement medical and life insurance benefits. The communication was provided to all eligible participants of the impacted plans and advised that the Company would discontinue all benefits associated with the impacted plans effective December 31, 2013. As a result of this action, the Company recorded a non-cash, pre-tax gain of $70.2 in the fourth fiscal quarter of 2013. The gains represent the combined effect of the acceleration of a prior service cost credit and other gains and the elimination of the majority of the post-retirement benefit liability. The combined impact of the non-cash gains associated with the pension and other post-retirement benefit changes noted above, which was $107.6 pre-tax, was reported on a separate line item in the Consolidated Statement of Earnings and Comprehensive Income. The Company also sponsors or participates in a number of other non-U.S. pension arrangements, including various retirement and termination benefit plans, some of which are required by local law or coordinated with government-sponsored plans, which are not significant in the aggregate and, therefore, are not included in the information presented in the following tables. The following tables present the benefit obligation, plan assets and funded status of the plans:
The following table presents the amounts recognized in the Consolidated Balance Sheets and Consolidated Statements of Shareholders’ Equity.
Changes recognized in other comprehensive income for the year ended September 30, 2013 are as follows:
The Company expects to contribute $31.1 to its pension plans and $1.7 to its postretirement plans in fiscal 2014. The Company’s expected future benefit payments are as follows:
The accumulated benefit obligation for defined benefit pension plans was $1,280.3 and $1,365.3 at September 30, 2013 and 2012, respectively. The following table shows pension plans with an accumulated benefit obligation in excess of plan assets at the dates indicated.
Pension plan assets in the U.S. plan represent approximately 80% of assets in all of the Company’s defined benefit pension plans. Investment policy for the U.S. plan includes a mandate to diversify assets and invest in a variety of asset classes to achieve that goal. The U.S. plan's assets are currently invested in several funds representing most standard equity and debt security classes. The broad target allocations are approximately: (a) equities, including U.S. and foreign: 65%, (b) debt securities, including U.S. bonds: 31% and (c) other: 4%. Actual allocations at September 30, 2013 approximated these targets. The U.S. plan held no shares of ENR stock at September 30, 2013. Investment objectives are similar for non-U.S. pension arrangements, subject to local regulations. The following table presents pension and postretirement expense:
Amounts expected to be amortized from accumulated other comprehensive loss into net period benefit cost during the year ending September 30, 2014, are as follows:
The following table presents assumptions, which reflect weighted-averages for the component plans, used in determining the above information:
The expected return on plan assets was determined based on historical and expected future returns of the various asset classes, using the target allocations described above. Specifically, for the U.S., which constitutes over 80% of our total assets, the expected return on equities is approximately 9.3%, and the expected return on debt securities (including government and corporate bonds) is approximately 4.3%. The following table sets forth the estimated fair value of the Company’s pension assets as of September 30, 2013 and 2012 segregated by level within the estimated fair value hierarchy. Refer to Note 14 of the Notes to Consolidated Financial Statements for further discussion on the estimated fair value hierarchy and estimated fair value principles.
In addition to the pension plan assets detailed above, the Company had no postretirement assets at September 30, 2013 and $0.4 of postretirement assets at September 30, 2012, which were classified as Level 1. There were no Level 3 pension and other postretirement plan assets at September 30, 2013 and 2012. Our investment objective for defined benefit retirement plan assets is to satisfy the current and future pension benefit obligations. The investment philosophy is to achieve this objective through diversification of the retirement plan assets. The goal is to earn a suitable return with an appropriate level of risk while maintaining adequate liquidity to distribute benefit payments. The diversified asset allocation includes equity positions, as well as a fixed income investments. The increased volatility associated with equities is offset with higher expected returns, while the long duration fixed income investments help dampen the volatility of the overall portfolio. Risk exposure is controlled by re-balancing the retirement plan assets back to target allocations, as needed. Investment firms managing retirement plan assets carry out investment policy within their stated guidelines. Investment performance is monitored against benchmark indices, which reflect the policy and target allocation of the retirement plan assets. |
Share-Based Payments - Restricted Stock Equivalents (Details) (USD $)
In Millions, except Share data, unless otherwise specified |
12 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||||
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Sep. 30, 2013
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Dec. 31, 2012
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Sep. 30, 2013
Subsequent Event [Member]
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Sep. 30, 2013
Restricted Stock [Member]
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Sep. 30, 2012
Restricted Stock [Member]
|
Sep. 30, 2011
Restricted Stock [Member]
|
Nov. 30, 2013
Restricted Stock [Member]
Subsequent Event [Member]
|
Oct. 31, 2008
October 2008 Restricted Stock Equivalent Grant [Member]
Restricted Stock [Member]
Management [Member]
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Oct. 31, 2011
October 2008 Restricted Stock Equivalent Grant [Member]
Restricted Stock [Member]
Management [Member]
Third Anniversary of Grant [Member]
|
Oct. 31, 2008
October 2008 Restricted Stock Equivalent Grant [Member]
Restricted Stock [Member]
Employee [Member]
Ratably Over Four Years [Member]
|
Oct. 31, 2009
October 2009 Restricted Stock Equivalent Grant [Member]
Restricted Stock [Member]
|
Oct. 31, 2009
October 2009 Restricted Stock Equivalent Grant [Member]
Restricted Stock [Member]
Management [Member]
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Oct. 31, 2012
October 2009 Restricted Stock Equivalent Grant [Member]
Restricted Stock [Member]
Management [Member]
Third Anniversary of Grant [Member]
|
Nov. 08, 2012
October 2009 Restricted Stock Equivalent Grant [Member]
Restricted Stock [Member]
Management [Member]
Dependent Upon EPS CAGR [Member]
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Oct. 31, 2009
October 2009 Restricted Stock Equivalent Grant [Member]
Restricted Stock [Member]
Employee [Member]
Ratably Over Four Years [Member]
|
Oct. 31, 2010
October 2010 Restricted Stock Equivalent Grant [Member]
Restricted Stock [Member]
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Nov. 05, 2013
October 2010 Restricted Stock Equivalent Grant [Member]
Restricted Stock [Member]
Management [Member]
|
Oct. 31, 2009
October 2010 Restricted Stock Equivalent Grant [Member]
Restricted Stock [Member]
Management [Member]
|
Nov. 30, 2013
October 2010 Restricted Stock Equivalent Grant [Member]
Restricted Stock [Member]
Management [Member]
Third Anniversary of Grant [Member]
|
Oct. 31, 2013
October 2010 Restricted Stock Equivalent Grant [Member]
Restricted Stock [Member]
Management [Member]
Third Anniversary of Grant [Member]
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Nov. 05, 2013
October 2010 Restricted Stock Equivalent Grant [Member]
Restricted Stock [Member]
Management [Member]
Dependent Upon EPS CAGR [Member]
|
Oct. 31, 2010
October 2010 Restricted Stock Equivalent Grant [Member]
Restricted Stock [Member]
Employee [Member]
Ratably Over Four Years [Member]
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Oct. 31, 2013
November 2010 Restricted Stock Equivalent Grant [Member]
Restricted Stock [Member]
Management [Member]
Third Anniversary of Grant [Member]
|
Nov. 30, 2013
November 2010 Restricted Stock Equivalent Grant [Member]
Restricted Stock [Member]
Management [Member]
Third Anniversary of Grant [Member]
|
Nov. 05, 2013
November 2010 Restricted Stock Equivalent Grant [Member]
Restricted Stock [Member]
Management [Member]
Dependent Upon EPS CAGR [Member]
|
Nov. 30, 2011
November 2010 Restricted Stock Equivalent Grant [Member]
Restricted Stock [Member]
Management [Member]
Dependent Upon EPS CAGR [Member]
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Oct. 31, 2010
November 2010 Restricted Stock Equivalent Grant [Member]
Restricted Stock [Member]
Management [Member]
Dependent Upon EPS CAGR [Member]
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Oct. 31, 2010
November 2010 Restricted Stock Equivalent Grant [Member]
Restricted Stock [Member]
Management [Member]
Dependent Upon EPS CAGR [Member]
Minimum [Member]
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Oct. 31, 2010
November 2010 Restricted Stock Equivalent Grant [Member]
Restricted Stock [Member]
Employee [Member]
Ratably Over Four Years [Member]
|
Nov. 30, 2011
November 2011 Restricted Stock Equivalent Grant [Member]
Restricted Stock [Member]
|
Nov. 30, 2011
November 2011 Restricted Stock Equivalent Grant [Member]
Restricted Stock [Member]
Management [Member]
Third Anniversary of Grant [Member]
|
Nov. 30, 2011
November 2011 Restricted Stock Equivalent Grant [Member]
Restricted Stock [Member]
Management [Member]
Dependent Upon EPS CAGR [Member]
|
Nov. 30, 2011
November 2011 Restricted Stock Equivalent Grant [Member]
Restricted Stock [Member]
Employee [Member]
Ratably Over Four Years [Member]
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Nov. 30, 2013
Date of 2016 Earnings Release [Member]
Restricted Stock [Member]
Management [Member]
Subsequent Event [Member]
|
Dec. 31, 2012
Ratably Over Four Years [Member]
Restricted Stock [Member]
Employee [Member]
|
Nov. 30, 2013
Ratably Over Four Years [Member]
Restricted Stock [Member]
Employee [Member]
Subsequent Event [Member]
|
Dec. 31, 2012
Third Anniversary of Grant [Member]
Restricted Stock [Member]
Management [Member]
|
Nov. 30, 2013
Third Anniversary of Grant [Member]
Restricted Stock [Member]
Management [Member]
Subsequent Event [Member]
|
Dec. 31, 2012
Date of 2015 Earnings Release [Member]
Restricted Stock [Member]
Management [Member]
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||
Restricted Stock Equivalents Vesting Percentage on Third Anniversary of Grant | 25.00% | 30.00% | 30.00% | 30.00% | |||||||||||||||||||||||||||||||||||
Vesting Amount if EPS CAGR is Achieved | 66.70% | 36.90% | 36.90% | 100.00% | |||||||||||||||||||||||||||||||||||
Minimum EPS CAGR Required For Full Vesting | 12.00% | ||||||||||||||||||||||||||||||||||||||
EPS CAGR Threshold For Vesting Percentages Less Than Full Amount | 9.33% | 6.95% | 6.95% | 5.00% | |||||||||||||||||||||||||||||||||||
Award Vesting Period | 4 years | 4 years | 4 years | 4 years | |||||||||||||||||||||||||||||||||||
Share Price | $ 81.45 | $ 101.56 | |||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Fair Value, Percentage Premium to Closing Stock Price | 7.00% | ||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||||||||||||||||||||||||||||||||||
Nonvested RSE at October 1, 2012 (shares) | 1,960,000 | ||||||||||||||||||||||||||||||||||||||
Nonvested RSE at October 1, 2012 (Grant Date Fair Value) ($ per share) | $ 70.38 | ||||||||||||||||||||||||||||||||||||||
Granted (shares) | 500,000 | 374,600 | 265,200 | 485,600 | 266,300 | 32,700 | 289,000 | 313,300 | 159,600 | 130,700 | 305,000 | 310,000 | 238,600 | 188,300 | 179,800 | 94,100 | 39,800 | 205,600 | |||||||||||||||||||||
Granted (Grant Date Fair Value) ($ per share) | $ 84.33 | $ 84,300,000.00 | $ 70,300,000.00 | $ 74,900,000.00 | |||||||||||||||||||||||||||||||||||
Vested (shares) | 620,000 | 91,900 | 130,000 | 201,700 | 85,000 | 58,800 | 48,000 | ||||||||||||||||||||||||||||||||
Vested (Grant Date Fair Value) ($ per share) | $ 67.92 | ||||||||||||||||||||||||||||||||||||||
Canceled (shares) | 200,000 | ||||||||||||||||||||||||||||||||||||||
Canceled (Grant Date Fair Value) ($ per share) | $ 69.10 | ||||||||||||||||||||||||||||||||||||||
Nonvested RSE at September 30, 2013 (shares) | 1,640,000 | ||||||||||||||||||||||||||||||||||||||
Nonvested RSE at September 30, 2013 (Grant Date Fair Value) ($ per share) | $ 75.75 | ||||||||||||||||||||||||||||||||||||||
Total Compensation Cost Not yet Recognized | $ 47.8 | ||||||||||||||||||||||||||||||||||||||
Weighted Average Remaining Contractual Term | 1 year 1 month 6 days | ||||||||||||||||||||||||||||||||||||||
RSE Vested in Period - Total Fair Value | $ 46.7 | $ 29.3 | $ 25.3 |
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