Rayovac 2008 Annual Report Download - page 176

Table of Contents
Index to Financial Statements
SPECTRUM BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
are expected to be incurred through December 31, 2008, relate primarily to severance and are projected at approximately $85,000, the majority of which will be
cash costs.
The following table summarizes the remaining accrual balance associated with the Global Realignment Initiatives and activity that have occurred during
Fiscal 2008:
Global Realignment Initiatives Summary
Termination
Benefits
Other
Costs Total
Accrual balance at September 30, 2007 $ 27,477 $ 4,043 $ 31,520
Provisions 8,041 1,811 9,852
Cash expenditures (18,372) (558) (18,930)
Non-cash items 429 (1,608) (1,179)
Accrual balance at September 30, 2008 $ 17,575 $ 3,688 $ 21,263
Expensed as incurred(A) $ 4,403 $ 5,906 $ 10,309
(A) Consists of amounts not impacting the accrual for restructuring and related charges.
The following table summarizes the expenses as incurred during Fiscal 2008, the cumulative amount incurred to date and the total future expected costs
incurred associated with the Global Realignment Initiatives by operating segment:
Global
Batteries and
Personal Care
Home and
Garden Corporate Total
Restructuring and related charges during Fiscal 2008 $ 12,037 $ 3,769 $ 4,355 $ 20,161
Restructuring and related charges since initiative inception $ 42,495 $ 6,265 $ 24,449 $ 73,209
Total future restructuring and related charges expected $ — $ 5,290 $ 6,110 $ 11,400
2006 Restructuring Initiatives
The Company implemented a series of initiatives within the Global Batteries & Personal Care segment in Europe to reduce operating costs and rationalize
the Company’s manufacturing structure (the “European Initiatives”). These initiatives, which are substantially complete, include the relocation of certain
operations at the Ellwangen, Germany packaging center to the Dischingen, Germany battery plant, transferring private label battery production at the Company’s
Dischingen, Germany battery plant to the Company’s manufacturing facility in China and restructuring its sales, marketing and support functions. The Company
recorded $(707), $6,504 and $21,242 of pretax restructuring and related charges during Fiscal 2008, 2007 and 2006, respectively, in connection with the
European Initiatives. The Company has recorded pretax restructuring and related charges of $27,039 since the inception of the European Initiatives.
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Source: Spectrum Brands, Inc, 10-K, December 10, 2008