content_image/20779.jpg
## (23) PRO FORMA FINANCIAL RESULTS 

The pro forma consolidated statements of earnings for the years ended September 30, 1999 and 2000 present the consolidated results of Energizer’s operations assuming the spin-off had occurred as of October 1, 1998. Such statement of earnings has been pre- pared by adjusting the historical statement of earnings to indicate the effect of estimated costs and expenses and the recapitalization associated with the spin-off. 

## PRO FORMA CONSOLIDATED STATEMENT OF EARNINGS 

(Dollars in millions except per share data – unaudited) 

<img src='content_image/20779.jpg'>

(a) To reflect the incremental costs associated with becoming a stand-alone company including Board of Director costs, stock exchange registration fees, shareholder record keeping services, external financial reporting, treasury services, tax planning and compliance, certain legal expenses and compensation planning and administration. 

(b) To adjust pension income on plan assets transferred to Energizer plans upon the spin-off. 

(c) To eliminate expense of certain postretirement benefits to be retained by Ralston. 

(d) To reflect the increase in interest expense associated with debt levels assigned to Energizer upon the spin-off. The adjustment reflects an average interest rate of 6.7% for $67.0 of incremental notes payable and 7.2% for $411.0 of incremental long-term debt. Approximately $303.0 of the incremental debt has a variable interest rate. A 1/8% variation in the interest rate would change interest expense by $.4. 

The pro forma statement of earnings may not necessarily reflect the consolidated results of operations that would have existed had the spin-off been effected on the dates specified nor are they necessarily indicative of future results. 

(e) To reflect taxes as if Energizer was a single, stand-alone U.S. taxpayer. 

(f) To reflect tax effect of the above pro forma adjustments. 

(g) The number of shares used to compute earnings per share is based on the weighted- average number of shares of Ralston stock outstanding during the six months ended March 31, 2000 (adjusted for the distribution of one share of Energizer stock for each three shares of Ralston stock) and the weighted-average number of shares of Energizer stock outstanding from April 1, 2000 to September 30, 2000. 

47 

