Segment note

Operations for the Company are managed via two segments - Personal Care (Wet Shave/Blades, Skin Care, Feminine Care and Infant Care) and Household Products (Battery and Lighting Products). On November 23, 2010, we completed the acquisition of American Safety Razor (ASR). ASR is a leading global manufacturer of private label/value wet shaving razors and blades, and industrial and specialty blades and will be a part of the Company’s Personal Care segment. Segment performance is evaluated based on segment operating profit, exclusive of general corporate expenses, share-based compensation costs, costs associated with most restructuring, integration or business realignment activities and amortization of intangible assets. Financial items, such as interest income and expense, are managed on a global basis at the corporate level.

The Company’s operating model includes a combination of stand-alone and combined business functions between the Personal Care and Household Products businesses, varying by country and region of the world. Shared functions include product warehousing and distribution, various transaction processing functions, and in some countries, a combined sales force and management. The Company applies a fully allocated cost basis, in which shared business functions are allocated between the businesses. Such allocations do not represent the costs of such services if performed on a stand-alone basis.

The reduction in gross profit associated with the write-up and subsequent sale of inventory acquired in the acquisition of ASR, which was $7.0 for the nine months ended June 30, 2011 is not reflected in the Personal Care segment, but rather presented as a separate line item below segment profit, as it is a non-recurring item directly associated with the ASR acquisition. Such presentation reflects management’s view on how segment results are evaluated.

For the nine months ended June 30, 2011, the Company recorded a charge of $1.3, related to the change in the value of its net monetary assets in Venezuela as a result of accounting for the translation of this affiliate under the accounting rules governing a highly inflationary economy. This result was recorded using an exchange rate of 5.6 Venezuelan Bolivar Fuerte to one U.S. dollar at June 30, 2011. In the prior year quarter and nine months, the Company recorded a gain of $5.1 and a charge of $19.1, respectively, related to the devaluation of the exchange rate between the U.S. dollar and the Venezuelan Bolivar Fuerte. These impacts, which are included in other financing on the Consolidated Statements of Earnings and Comprehensive Income (Condensed), are not considered in the evaluation of segment profit. However, normal operating results in Venezuela, such as sales, gross margin and spending, have been negatively impacted by translating at less favorable exchange rates as compared to the prior year (most notably in the first fiscal quarter) and by the impact of unfavorable economic conditions in the country. These operating results remain part of the reported segment totals.

On May 19, 2011, the Company completed the issuance of $600.0 principal amount of 4.7% Senior Notes due May 2021 with interest paid semi-annually beginning November 2011. The vast majority of the proceeds of the offering were used to repay existing indebtedness including the early redemption of certain private placement notes. The early retirement of the private placement notes resulted in the payment of certain “make whole” payments totaling $19.9, which are reflected as a separate line item on the Consolidated Statements of Earnings and Comprehensive Income as well as the reconciliation of segment results to total earnings before income taxes included in this note.

Segment sales and profitability for the quarter and nine months ended June 30, 2011 and 2010, respectively, are presented below.



	For the quarter ended June 30,						For the nine months ended June 30,
	2011			2010			2011			2010
Net Sales
Personal Care	$	725.3		$	589.2		$	1,844.3		$	1,555.2
Household Products	509.2			487.6			1,602.6			1,633.4
Total net sales	$	1,234.5		$	1,076.8		$	3,446.9		$	3,188.6

	For the quarter ended June 30,						For the nine months ended June 30,
	2011			2010			2011			2010
Operating Profit
Personal Care	$	130.5		$	95.4		$	330.4		$	331.1
Household Products	80.0			89.9			295.5			340.6
Total operating profit	210.5			185.3			625.9			671.7

General corporate and other expenses	(27.1		)	(18.2		)	(93.5		)	(72.6		)
Household Products restructuring	(21.0		)	—			(59.6		)	—
Acquisition inventory valuation	—			—			(7.0		)	—
ASR transaction costs/integration	(4.0		)	—			(11.6		)	—
Amortization	(5.6		)	(3.4		)	(15.5		)	(10.2		)
Venezuela devaluation/non-operating impacts	—			5.1			(1.3		)	(19.1		)
Cost of early debt retirements	(19.9		)	—			(19.9		)	—
Interest and other financing items	(32.0		)	(26.0		)	(93.1		)	(100.2		)
Total earnings before income taxes	$	100.9		$	142.8		$	324.4		$	469.6

Supplemental product information is presented below for revenues from external customers:



	For the quarter ended June 30,				For the nine months ended June 30,
Net Sales	2011		2010		2011		2010
Wet Shave/Blades	$	446.4	$	340.1	$	1,194.9	$	928.7
Alkaline batteries	300.3		286.2		939.8		976.5
Other batteries and lighting products	208.9		201.4		662.8		656.9
Skin Care	176.8		147.6		358.2		324.7
Feminine Care	52.5		51.0		142.8		149.4
Infant Care	48.7		50.5		147.5		152.4
Other personal care products	0.9		—		0.9		—
Total net sales	$	1,234.5	$	1,076.8	$	3,446.9	$	3,188.6

Total assets by segment are presented below:



	June 30, 2011		September 30, 2010
Personal Care	$	1,530.4	$	1,156.6
Household Products	1,221.2		1,299.1
Total segment assets	2,751.6		2,455.7
Corporate	721.4		841.6
Goodwill and other intangible assets, net	3,321.8		3,090.6
Total assets	$	6,794.8	$	6,387.9