Rayovac 2008 Annual Report Download - page 15

Table of Contents
Index to Financial Statements
costs associated with compliance with WEEE are not significant based on our current market share. However, we continue to evaluate the impact of the WEEE
legislation as EU member states implement guidance and as our market share changes, and actual costs to our company could differ from our current estimates.
The third directive is the Directive on Batteries and Accumulators and Waste Batteries, which was adopted in September 2006 and went into effect in September
2008 (the “Battery Directive”). The Battery Directive bans heavy metals in batteries by establishing maximum quantities of those heavy metals in batteries and
mandates waste management of batteries, including collection, recycling and disposal systems. The Battery Directive places the costs of such waste management
systems on producers and importers of batteries. The Battery Directive calls on each EU member state to enact enabling legislation to implement the directive.
We currently believe that compliance with the Battery Directive will not have a material effect on our capital expenditures, financial position, earnings or
competitive position. However, until such time as the EU member states adopt enabling legislation, a full evaluation of these costs cannot be completed. We will
continue to evaluate the impact of the Battery Directive and its enabling legislation as EU member states implement guidance.
Certain of our products and facilities in each of our business segments are regulated by the United States Environmental Protection Agency (the “EPA”)
and the United States Food and Drug Administration (the “FDA”) or other federal consumer protection and product safety agencies and are subject to the
regulations such agencies enforce, as well as by similar state, foreign and multinational agencies and regulations. For example, in the U.S., all products
containing pesticides must be registered with the EPA and, in many cases, similar state and foreign agencies before they can be manufactured or sold. Our
inability to obtain or the cancellation of any registration could have an adverse effect on our business, financial condition and results of operations. The severity
of the effect would depend on which products were involved, whether another product could be substituted and whether our competitors were similarly affected.
We attempt to anticipate regulatory developments and maintain registrations of, and access to, substitute chemicals and other ingredients. We may not always be
able to avoid or minimize these risks.
The Food Quality Protection Act (“FQPA”) established a standard for food-use pesticides, which is that a reasonable certainty of no harm will result from
the cumulative effect of pesticide exposures. Under the FQPA, the EPA is evaluating the cumulative effects from dietary and non-dietary exposures to pesticides.
The pesticides in certain of our products continue to be evaluated by the EPA as part of this program. It is possible that the EPA or a third party active ingredient
registrant may decide that a pesticide we use in our products will be limited or made unavailable to us. We cannot predict the outcome or the severity of the
effect of the EPA’s continuing evaluations of active ingredients used in our products.
Certain of our products and packaging materials are subject to regulations administered by the FDA. Among other things, the FDA enforces statutory
prohibitions against misbranded and adulterated products, establishes ingredients and manufacturing procedures for certain products, establishes standards of
identity for certain products, determines the safety of products and establishes labeling standards and requirements. In addition, various states regulate these
products by enforcing federal and state standards of identity for selected products, grading products, inspecting production facilities and imposing their own
labeling requirements.
Employees
We had approximately 7,000 full-time employees worldwide as of September 30, 2008. Approximately 18% of our total labor force is covered by
collective bargaining agreements. There are three collective bargaining agreements that will expire in Fiscal 2009, which cover approximately 45% of the labor
force under collective bargaining agreements, or approximately 9% of our total labor force. We believe that our overall relationship with our employees is good.
Available Information
Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to reports filed pursuant to Sections
13(a) and 15(d) of the Securities Exchange Act of 1934, as
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Source: Spectrum Brands, Inc, 10-K, December 10, 2008