Rayovac 2009 Annual Report Download - page 204

Table of Contents
Index to Financial Statements SPECTRUM BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
2009 Restructuring Initiatives
The Predecessor Company implemented a series of initiatives within the Global Batteries & Personal Care segment and the Global Pet Supplies
segment to reduce operating costs as well as evaluate the Company’s opportunities to improve its capital structure (the “Global Cost Reduction Initiatives”).
These initiatives include headcount reductions within each of the Company’s segments and the exit of certain facilities in the U.S. related to the Global Pet
Supplies segment. These initiatives also included consultation, legal and accounting fees related to the evaluation of the Predecessor Company’s capital
structure. The Company recorded $1,550 and $18,850 of pretax restructuring and related charges during the one month period ended September 30, 2009
(Successor Company) and the eleven month period ended August 30, 2009 (Predecessor Company), respectively, related to the Global Cost Reduction
Initiatives. Costs associated with these initiatives, which are expected to be incurred through September 30, 2013, are projected at approximately $55,000.
Global Cost Reduction Initiatives Summary
The following table summarizes the remaining accrual balance associated with the Global Cost Reduction Initiatives and activity that occurred during
Fiscal 2009:
Termination
Benefits Other Costs Total
Accrual balance at September 30, 2008 (Predecessor Company) $ — $ — $ —
Provisions 5,066 1,480 6,546
Cash expenditures (2,210) (711) (2,921)
Non−cash items 1,324 (685) 639
Accrual balance at September 30, 2009 (Successor Company) $ 4,180 $ 84 $ 4,264
Expensed as incurred(A) $ 1,690 $12,164 $13,854
(A) Consists of amounts not impacting the accrual for restructuring and related charges.
The following table summarizes the expenses as incurred by Successor Company during the one month period ended September 30, 2009, and by
Predecessor Company during the eleven month period ended August 30, 2009, the cumulative amount incurred from inception of the initiative through
September 30, 2009 and the total future expected costs to be incurred associated with the Global Cost Reduction Initiatives by operating segment:
Global
Batteries and
Personal Care Global Pet Supplies Home and Garden Corporate Total
Restructuring and related charges during the one month period ended
September 30, 2009 (Successor Company) $ 466 $ 40 $ 1,044 $ — $ 1,550
Restructuring and related charges during the eleven month period ended
August 30, 2009 (Predecessor Company) $ 4,136 $ 3,416 $ 3,708 $ 7,591 $18,851
Restructuring and related charges since initiative inception $ 4,602 $ 3,456 $ 4,752 $ 7,591 $20,401
Total future estimated restructuring and related charges expected to be
incurred $ 586 $ 27,000 $ 6,900 $ — $34,486
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