NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (continued) (Dollars in millions except per share data) PRO FORMA CONSOLIDATED STATEMENT OF EARNINGS (Dollars in millions except per share data – unaudited) (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 reflect pension income on plan assets to be transferred to Energizer plans upon  the distribution. (c) To eliminate expense of certain postretirement benefits to be retained by Ralston. (d) In addition to costs described above, compensation for certain executive officers will  be higher than the costs included in the historical financial statements. The amount of  the increase cannot be determined at this time. (e) To reflect the increase in interest expense associated with debt levels to be assumed at Distribution Date. The adjustment reflects an interest rate of 7.0% for $150.0 of incremental notes payable and 7.7% for $343.9 of incremental long-term debt. The incremental notes payable will have a variable interest rate. A 1/8% variation in the interest rate would change interest expense by $.4. (f) To reflect taxes as if Energizer was a single, stand-alone U.S. taxpayer. (g) To reflect tax effect of the above pro forma adjustments.  (h) 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 year ended  September 30, 1999, adjusted for the anticipated distribution of one share of Energizer stock for each three shares of Ralston stock. YEAR ENDED SEPTEMBER 30, 1999 Adjustments Related to Historic Distribution Pro Forma Net Sales $ 1,872.3  $ 1,872.3 Costs and Expenses Cost of products sold 997.9 997.9 Selling, general and administrative 398.0 8.0 (a) 400.9 (3.3) (b) (1.8) (c) (d) Advertising and promotion 164.3 164.3 Research and development 48.5 48.5 Provisions for restructuring 7.8 7.8 Interest 7.6 36.9 (e) 44.5 1,624.1 39.8 1,663.9 Earnings from Continuing Operations before Income Taxes 248.2 (39.8) 208.4 Income Taxes (88.4) (11.2) (f) (91.5) 8.1 (g) Earnings from Continuing Operations $ 159.8  $ (42.9) $ 116.9  Earnings Per Share from Continuing Operations (h) $ 1.56 $ 1.14 Weighted-average Shares of Common Stock (h) 102.6 102.6  48 ENERGIZER 2000 ANNUAL REPOR T