Segment note

Operations for the Company are managed via two segments - Personal Care (Wet Shave, Skin Care, Feminine Care and Infant Care) and Household Products (Battery and Portable Lighting). Segment performance is evaluated based on segment operating profit, exclusive of general corporate expenses, share-based compensation costs, costs associated with restructurings including the recently announced 2013 Restructuring Plan, acquisition 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 exclusion from segment results of charges such as inventory write-up related to purchase accounting, if any, other acquisition transaction and integration costs, and substantially all restructuring and realignment costs, reflects how management evaluates segment performance.

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 most countries, a combined sales force and management. The Company applies a fully allocated cost basis, in which shared business functions are allocated between the segments. Such allocations do not represent the costs of such services if performed on a stand-alone basis.

For the quarter ended December 31, 2012, the Company recorded pre-tax expense of $49.0 related to its 2013 restructuring. These costs were reported on a separate line in the Consolidated Statements of Earnings and Comprehensive Income (Condensed). See Note 2.

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 to date by active participants under the legacy Energizer U.S. pension plan will be frozen and future service benefits will no longer be accrued under this retirement program. For the quarter ended December 31, 2012, the Company recorded a pre-tax curtailment gain of $37.4 as a result of this plan change. The pension curtailment gain was reported on a separate line in the Consolidated Statements of Earnings and Comprehensive Income (Condensed). See Note 6.

For the prior year fiscal quarter, our prior Household Products restructuring activities generated pre-tax income of $9.2, due to the gain on the sale of our former battery manufacturing facility in Switzerland, which was shut down in fiscal 2011. This gain was partially offset by $3.6 of additional restructuring costs.

Segment sales and profitability for the quarter ended December 31, 2012 and 2011, respectively, are presented below.



	For the quarter ended December 31,
	2012			2011
Net Sales
Personal Care	$	554.3		$	564.4
Household Products	638.2			633.7
Total net sales	$	1,192.5		$	1,198.1

	For the quarter ended December 31,
	2012			2011
Operating Profit
Personal Care	$	116.2		$	123.5
Household Products	160.6			148.8
Total operating profit	276.8			272.3

General corporate and other expenses	(29.5		)	(38.2		)
2013 restructuring	(49.0		)	—
Pension curtailment	37.4			—
2011 Household Products restructuring	—			9.2
Amortization	(5.6		)	(5.7		)
Interest and other financing items	(41.4		)	(29.2		)
Total earnings before income taxes	$	188.7		$	208.4

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



	For the quarter ended December 31,
Net Sales	2012		2011
Alkaline batteries	$	401.7	$	393.8
Wet Shave	394.5		410.5
Other batteries and lighting products	236.5		239.9
Skin Care	63.1		56.7
Feminine Care	42.0		42.1
Infant Care	41.0		44.7
Other personal care products	13.7		10.4
Total net sales	$	1,192.5	$	1,198.1