UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: January 17, 2002
ENERGIZER HOLDINGS, INC.
----------------------------------------------------
(Exact name of Registrant as specified in its charter)
MISSOURI 1-15401 No. 43-1863181
(State or Other (Commission (IRS Employer
Jurisdiction of File Number) Identification
Incorporation) Number)
533 MARYVILLE UNIVERSITY DRIVE, ST. LOUIS, MO 63141
- -------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(314) 985-2000
-------------------
(Registrant's telephone number, including area code)
ITEM 5. OTHER EVENTS
Energizer Holdings, Inc. (Energizer) operations are managed via four geographic
segments. In the past, each segment has reported profit from its intersegment
sales in its own segment results. Changes in intersegment profit captured in
inventory and not yet sold to outside customers were recorded in general
corporate expenses. Due to increased levels of intersegment sales related to
production consolidation, and in light of Energizer's current management
objectives and structure, Energizer believes the exclusion of intersegment
profit in segment results is a more appropriate view of its operating segments.
Beginning in fiscal 2002, Energizer will report segment results reflecting all
profit derived from each outside customer sale in the region in which the
customer is located. Profit on sales to other segments will no longer be
reported in the selling region. As a result, segments with manufacturing
capacity that are net exporters to other segments will show lower segment profit
than in the past. Segments that are net importers of Energizer manufactured
product will show higher segment profit than in the past.
The following tables reconcile historical segment results for fiscal 2001 by
quarter, reflecting the new segment view. The tables also show adjustments made
(as shown in Energizer's Annual Report on Form 10K for the year ended September
30, 2001) related to the adoption of Emerging Issues Task Force (EITF) 00-14 and
00-25 regarding advertising and promotion and EITF 00-10 regarding shipping,
handling and freight. (Dollars in millions.)
QUARTER ENDED DECEMBER 31, 2000
-------------------------------
Advertising Shipping
& Promotion & Handling Segment
Reclass- Reclass- Reclass-
Historical ification ification ification Total
---------- --------- --------- --------- -----
Net Sales
- ---------
North America $328.4 $(8.8) $ 6.1 $(1.0) $324.7
Asia 100.9 (0.5) 1.1 (1.3) 100.2
Europe 86.2 (0.4) 1.9 1.6 89.3
S&C America 43.2 (0.2) 1.4 0.7 45.1
------- ------ ----- ------ -------
Total Customer Sales $558.7 $(9.9) $10.5 $ - $559.3
Profitability
- -------------
North America $ 90.9 $ - $ - $(1.9) $ 89.0
Asia 27.1 - - (2.3) 24.8
Europe 1.1 - - 3.6 4.7
S&C America 5.7 - - 3.0 8.7
------- ------ ----- ------ -------
Total segment profitability $124.8 $ - $ - $ 2.4 $127.2
General corporate expenses (4.0) - - (2.4) (6.4)
Research and development
expenses (11.5) - - - (11.5)
------- ------ ----- ------ -------
Operating profit before unusual
items and amortization 109.3 - - - 109.3
Amortization (5.6) - - - (5.6)
Interest and other financial items (11.0) - - - (11.0)
------- ------ ----- ------ -------
Total earnings before
income taxes $ 92.7 $ - $ - $ - $ 92.7
======= ====== ===== ====== =======
QUARTER ENDED MARCH 31, 2001
----------------------------
Advertising Shipping
& Promotion & Handling Segment
Reclass- Reclass- Reclass-
Historical ification ification ification Total
---------- --------- --------- --------- -----
Net Sales
- ---------
North America $188.8 $(4.2) $4.4 $ - $189.0
Asia 78.7 (0.4) 0.9 (1.1) 78.1
Europe 54.3 (0.3) 1.9 0.9 56.8
S&C America 30.1 (0.1) 0.9 0.2 31.1
------- ------ ---- ------ -------
Total Customer Sales $351.9 $(5.0) $8.1 $ - $355.0
Profitability
- -------------
North America $ 37.8 $ - $ - $(0.6) $ 37.2
Asia 14.7 - - - 14.7
Europe (7.0) - - 2.7 (4.3)
S&C America 1.0 - - 1.1 2.1
------- ------ ---- ------ -------
Total segment profitability $ 46.5 $ - $ - $ 3.2 $ 49.7
General corporate expenses (10.9) - - (3.2) (14.1)
Research and
development expenses (11.1) - - - (11.1)
------- ------ ---- ------ -------
Operating profit before
unusual items and amortization 24.5 - - - 24.5
Amortization (5.7) - - - (5.7)
Interest and other
financial items (9.3) - - - (9.3)
------- ------ ---- ------ -------
Total earnings before
income taxes $ 9.5 $ - $ - $ - $ 9.5
======= ====== ==== ====== =======
QUARTER ENDED JUNE 30, 2001
---------------------------
Advertising Shipping
& Promotion & Handling Segment
Reclass- Reclass- Reclass-
Historical ification ification ification Total
---------- --------- --------- --------- -----
Net Sales
- ---------
North America $192.9 $(5.4) $3.6 $ 0.2 $191.3
Asia 74.8 (0.6) 0.8 (1.4) 73.6
Europe 51.4 (0.2) 1.1 0.8 53.1
S&C America 27.5 (0.1) 1.4 0.4 29.2
------- ------ ---- ------ -------
Total Customer Sales $346.6 $(6.3) $6.9 $ - $347.2
Profitability
- -------------
North America $ 21.4 $ - $ - $ 1.8 $ 23.2
Asia 17.5 - - (2.9) 14.6
Europe (3.5) - - 2.4 (1.1)
S&C America - - - 0.4 0.4
------- ------ ---- ------ -------
Total segment profitability $ 35.4 $ - $ - $ 1.7 $ 37.1
General corporate expenses 0.9 - - (1.7) (0.8)
Research and development expenses (11.8) - - - (11.8)
------- ------ ---- ------ -------
Operating profit before
unusual items and amortization 24.5 - - - 24.5
Intellectual property
rights income 20.0 - - - 20.0
Amortization (5.7) - - - (5.7)
Interest and other
financial items (7.4) - - - (7.4)
------- ------ ---- ------ -------
Total earnings before
income taxes $ 31.4 $ - $ - $ - $ 31.4
======= ====== ==== ====== =======
QUARTER ENDED SEPTEMBER 30, 2001
--------------------------------
Advertising Shipping
& Promotion & Handling Segment
Historical Reclass- Reclass- Reclass-
Method ification ification ification Total
---------- --------- --------- --------- -----
Net Sales
- ---------
North America $ 265.6 $(5.9) $5.1 $ 0.5 $ 265.3
Asia 73.0 (0.7) 1.0 (2.3) 71.0
Europe 64.2 (0.3) 1.6 1.0 66.5
S&C America 28.1 (0.2) 1.2 0.8 29.9
-------- ------ ---- ------ --------
Total Customer Sales $ 430.9 $(7.1) $8.9 $ - $ 432.7
Profitability
- -------------
North America $ 52.9 $ - $ - $ 0.1 $ 53.0
Asia 16.5 - - (4.0) 12.5
Europe 6.8 - - 0.5 7.3
S&C America 0.4 - - 1.7 2.1
-------- ------ ---- ------ --------
Total segment profitability $ 76.6 $ - $ - $(1.7) $ 74.9
General corporate expenses (6.9) - - 1.7 (5.2)
Research and development expenses (12.0) - - - (12.0)
-------- ------ ---- ------ --------
Operating profit before
unusual items and amortization 57.7 - - - 57.7
Provision for goodwill impairment (119.0) - - - (119.0)
Provisions for restructuring (29.8) - - - (29.8)
Amortization (4.2) - - - (4.2)
Interest and other financial items (6.8) - - - (6.8)
-------- ------ ---- ------ --------
Total earnings before
income taxes $(102.1) $ - $ - $ - $(102.1)
======== ====== ==== ====== ========
YEAR ENDED SEPTEMBER 30, 2001
-----------------------------
Advertising Shipping
& Promotion & Handling Segment
Historical Reclass- Reclass- Reclass-
Method ification ification ification Total
---------- --------- --------- --------- -----
Net Sales
- ---------
North America $ 975.7 $(24.3) $19.2 $(0.3) $ 970.3
Asia 327.4 (2.2) 3.8 (6.1) 322.9
Europe 256.1 (1.2) 6.5 4.3 265.7
S&C America 128.9 (0.6) 4.9 2.1 135.3
--------- ------- ----- ------ --------
Total Customer Sales $1,688.1 $(28.3) $34.4 $ - $1,694.2
Profitability
- -------------
North America $ 203.0 $ - $ - $(0.6) $ 202.4
Asia 75.8 - - (9.2) 66.6
Europe (2.6) - - 9.2 6.6
S&C America 7.1 - - 6.2 13.3
--------- ------- ----- ------ -------
Total segment profitability $ 283.3 $ - $ - $ 5.6 $ 288.9
General corporate expenses (20.9) - - (5.6) (26.5)
Research and development (46.4)
expenses (46.4) - - -
--------- ------- ----- ------ -------
Operating profit before
unusual items and amortization 216.0 - - - 216.0
Provision for goodwill impairment (119.0) - - - (119.0)
Provisions for restructuring (29.8) - - - (29.8)
Intellectual property rights income 20.0 - - - 20.0
Amortization (21.2) - - - (21.2)
Interest and other financial items (34.5) - - - (34.5)
Total earnings before --------- ------- ----- ------ -------
income taxes $ 31.5 $ - $ - $ 0.0 $ 31.5
========= ======= ===== ====== =========
The following tables reconcile historical consolidated results for fiscal 2001
by quarter to reflect adjustments made (as disclosed in Energizer's Annual
Report on Form 10K for the year ended September 30, 2001) related to the
adoption of EITF 00-14 and 00-25 regarding advertising and promotion and EITF
00-10 regarding shipping, handling and freight:
ENERGIZER HOLDINGS, INC.
STATEMENT OF EARNINGS
(DOLLARS IN MILLIONS)
Reclassified
Quarter Ended Advertising & Shipping & Quarter ended
December 31, Promotion Handling December 31,
2000 Reclassification Reclassification 2000
---- ---------------- ---------------- ----
Net Sales . . . . . . . . . . . . . . . . . $558.7 (9.9) 10.5 $559.3
Cost of products sold . . . . . . . . . . . 292.0 19.6 311.6
Selling, general and administrative expense 92.3 (9.1) 83.2
Advertising and promotion expense . . . . . 59.2 (9.9) 49.3
Research and development expense. . . . . . 11.5 11.5
Interest expense. . . . . . . . . . . . . . 9.9 9.9
Other financing items, net. . . . . . . . . 1.1 1.1
------- ------ ------ -------
Earnings before Income Taxes. . . . . . . . 92.7 - - 92.7
Income Taxes. . . . . . . . . . . . . . . . (38.5) - - (38.5)
------- ------ ------ -------
Net Earnings. . . . . . . . . . . . . . . . $ 54.2 $ - $ - $ 54.2
======= ====== ====== =======
ENERGIZER HOLDINGS, INC.
STATEMENT OF EARNINGS
(DOLLARS IN MILLIONS)
Reclassified
Quarter Ended Advertising & Shipping & Quarter ended
March 31, Promotion Handling March 31,
2001 Reclassification Reclassification 2001
---- ---------------- ---------------- ----
Net Sales . . . . . . . . . . . . . . . . . $351.9 (5.0) 8.1 $355.0
Cost of products sold . . . . . . . . . . . 189.6 - 15.0 204.6
Selling, general and administrative expense 100.0 - (6.9) 93.1
Advertising and promotion expense . . . . . 32.4 (5.0) 27.4
Research and development expense. . . . . . 11.1 - 11.1
Interest expense. . . . . . . . . . . . . . 8.8 8.8
Other financing items, net. . . . . . . . . 0.5 0.5
------- ------ ------ -------
Earnings before Income Taxes. . . . . . . . 9.5 - - 9.5
Income Taxes. . . . . . . . . . . . . . . . (3.9) - - (3.9)
------- ------ ------ -------
Net Earnings. . . . . . . . . . . . . . . . $ 5.6 $ - $ - $ 5.6
======= ====== ====== =======
ENERGIZER HOLDINGS, INC.
STATEMENT OF EARNINGS
(DOLLARS IN MILLIONS)
Reclassified
Quarter Ended Advertising & Shipping & Quarter ended
June 30, Promotion Handling June 30,
2001 Reclassification Reclassification 2001
---- ---------------- ---------------- ----
Net Sales . . . . . . . . . . . . . . . . . $346.6 (6.3) 6.9 $347.2
Cost of products sold . . . . . . . . . . . 201.6 - 14.2 215.8
Selling, general and administrative expense 77.4 - (7.3) 70.1
Advertising and promotion expense . . . . . 37.0 (6.3) 30.7
Research and development expense. . . . . . 11.8 - 11.1
Intellectual property rights income (20.0) (20.0)
Interest expense. . . . . . . . . . . . . . 7.9 7.9
Other financing items, net. . . . . . . . . (0.5) (0.5)
------- ------ ------ -------
Earnings before Income Taxes. . . . . . . . 31.4 - - 31.4
Income Taxes. . . . . . . . . . . . . . . . (15.7) - - (15.7)
------- ------ ------ -------
Net Earnings. . . . . . . . . . . . . . . . $ 15.7 $ - $ - $ 15.7
======= ====== ====== =======
ENERGIZER HOLDINGS, INC.
STATEMENT OF EARNINGS
(DOLLARS IN MILLIONS)
Reclassified
Quarter Ended Advertising & Shipping & Quarter ended
September 30, Promotion Handling September 30,
2001 Reclassification Reclassification 2001
---- ---------------- ---------------- ----
Net Sales . . . . . . . . . . . . . . . . . $430.9 (7.1) 8.9 $432.7
Cost of products sold . . . . . . . . . . . 250.4 - 16.7 267.1
Selling, general and administrative expense 81.7 - (7.8) 73.9
Advertising and promotion expense . . . . . 33.3 (7.1) 26.2
Research and development expense. . . . . . 12.0 - 12.0
Provision for goodwill impairment 119.0 119.0
Provision for restructuring 29.8 29.8
Interest expense. . . . . . . . . . . . . . 6.6 6.6
Other financing items, net. . . . . . . . . 0.2 0.2
------- ------ ------ -------
Loss before Income Taxes . . . . . . . . (102.1) - - (102.1)
Income Taxes. . . . . . . . . . . . . . . . (12.4) - - (12.4)
------- ------ ------ -------
Net Loss. . . . . . . . . . . . . . . . . $ (114.5) $ - $ - $ (114.5)
======= ====== ====== =======
ENERGIZER HOLDINGS, INC.
STATEMENT OF EARNINGS
(DOLLARS IN MILLIONS)
Reclassified
Year Ended Advertising & Shipping & Year ended
September 30, Promotion Handling September 30,
2001 Reclassification Reclassification 2001
---- ---------------- ---------------- ----
Net Sales . . . . . . . . . . . . . . . . .$1,688.1 (28.3) 34.4 $1,694.2
Cost of products sold . . . . . . . . . . . 933.6 - 65.5 999.1
Selling, general and administrative expense 351.4 - (31.1) 320.3
Advertising and promotion expense . . . . . 161.9 (28.3) 133.6
Research and development expense. . . . . . 46.4 - 46.4
Provision for goodwill impairment 119.0 119.0
Provision for restructuring 29.8 29.8
Intellectual property rights income (20.0) (20.0)
Interest expense. . . . . . . . . . . . . . 33.2 33.2
Other financing items, net. . . . . . . . . 1.3 1.3
------- ------ ------ -------
Earnings before Income Taxes. . . . . . . . 31.5 - - 31.5
Income Taxes. . . . . . . . . . . . . . . . (70.5) - - (70.5)
------- ------ ------ -------
Net Loss. . . . . . . . . . . . . . . . . $ (39.0) $ - $ - $ (39.0)
======= ====== ====== =======
SIGNATURES:
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ENERGIZER HOLDINGS, INC.
By: /s/ Daniel J. Sescleifer
Daniel J. Sescleifer
Executive Vice President and
Chief Financial Officer
Dated: January 17, 2002