Rayovac 2008 Annual Report Download - page 175

Table of Contents
Index to Financial Statements
SPECTRUM BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
Ningbo Exit Plan Summary
Termination
Benefits
Other
Costs Total
Accrual balance at September 30, 2007 $ — $ — $ —
Provisions 912 233 1,145
Non-cash items (1) — (1)
Accrual balance at September 30, 2008 $ 911 $ 233 $ 1,144
Expensed as incurred(A) $ 318 $ 14,936 $ 15,254
(A) Consists of amounts not impacting the accrual for restructuring and related charges.
2007 Restructuring Initiatives
The Company has implemented a series of initiatives within the Global Batteries & Personal Care segment in Latin America to reduce operating costs (the
“Latin American Initiatives”). These initiatives, which are substantially complete, include the reduction of certain manufacturing operations in Brazil and the
restructuring of management, sales, marketing and support functions. The Company recorded $317 and $10,923 of pretax restructuring and related charges
during Fiscal 2008 and 2007, respectively, in connection with the Latin American Initiatives. The Company has recorded pretax restructuring and related charges
of $11,240 since the inception of the Latin American Initiatives.
The following table summarizes the remaining accrual balance associated with the Latin American Initiatives and activity that occurred during Fiscal
2008:
Latin American Initiatives Summary
Termination
Benefits
Other
Costs Total
Accrual balance at September 30, 2007 $ 124 $ 576 $ 700
Provisions — 250 250
Non-cash items — (49) (49)
Accrual balance at September 30, 2008 $ 124 $ 777 $ 901
Expensed as incurred(A) $ 64 $ 3 $ 67
(A) Consists of amounts not impacting the accrual for restructuring and related charges.
In Fiscal 2007, the Company began managing its business in three vertically integrated, product-focused reporting segments; Global Batteries & Personal
Care, Global Pet Supplies and the Home and Garden Business. As part of this realignment, the Company’s Global Operations organization, previously included
in corporate expense, consisting of research and development, manufacturing management, global purchasing, quality operations and inbound supply chain, is
now included in each of the operating segments. See also Note 13, Segment Results, for additional discussion on the Company’s realignment of its operating
segments. In connection with these changes the Company undertook a number of cost reduction initiatives, primarily headcount reductions, at the corporate and
operating segment levels (the “Global Realignment Initiatives”). The Company recorded $20,161and $53,048 of pretax restructuring and related charges during
Fiscal 2008 and 2007, respectively, in connection with the Global Realignment Initiatives. Costs associated with these initiatives, which
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Source: Spectrum Brands, Inc, 10-K, December 10, 2008