Rayovac 2009 Annual Report Download - page 205

Table of Contents
Index to Financial Statements SPECTRUM BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
2008 Restructuring Initiatives
The Predecessor Company implemented an initiative within the Global Batteries & Personal Care segment in China to reduce operating costs and
rationalize the Company’s manufacturing structure. These initiatives, which are substantially complete, include the plan to exit the Company’s Ningbo
battery manufacturing facility in China (the “Ningbo Exit Plan”). The Company recorded $165 and $10,652 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 Ningbo Exit Plan. The Predecessor Company recorded $16,399 of pretax restructuring and related charges during Fiscal 2008 in
connection with the Ningbo Exit Plan. The Company has recorded pretax restructuring and related charges of $27,216 since the inception of the Ningbo Exit
Plan.
The following table summarizes the remaining accrual balance associated with the Ningbo Exit Plan and activity that occurred during Fiscal 2009:
Ningbo Exit Plan Summary
Termination
Benefits Other Costs Total
Accrual balance at September 30, 2008 (Predecessor Company) $ 911 $ 233 $ 1,144
Provisions 768 657 1,425
Cash expenditures (1,652) (640) (2,292)
Non−cash items (27) 58 31
Accrual balance at September 30, 2009 (Successor Company) $ — $ 308 $ 308
Expensed as incurred(A) $ 89 $9,303 $ 9,392
(A) Consists of amounts not impacting the accrual for restructuring and related charges.
2007 Restructuring Initiatives
The Predecessor 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 Successor Company recorded no pretax restructuring
and related charges during the one month period ended September 30, 2009 related to the Latin American Initiatives. The Predecessor Company recorded
$207 of pretax restructuring and related charges during the eleven month period ended August 30, 2009, related to the Latin American Initiatives. The
Predecessor Company recorded $317 and $10,923 of pretax restructuring and related charges during Fiscal 2008 and Fiscal 2007, respectively, in
connection with the Latin American Initiatives. The Company has recorded pretax restructuring and related charges of $11,447 since the inception of the
Latin American Initiatives.
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