Rayovac 2009 Annual Report Download - page 208

Table of Contents
Index to Financial Statements SPECTRUM BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
2005 Restructuring Initiatives
In connection with the acquisitions of United and Tetra in 2005, the Predecessor Company implemented a series of initiatives to optimize the global
resources of the combined companies. These initiatives included: integrating all of United’s home and garden administrative services, sales and customer
service functions into the Company’s operations in Madison, Wisconsin; converting all information systems to SAP; consolidating United’s home and
garden manufacturing and distribution locations in North America; rationalizing the North America supply chain; and consolidating administrative,
manufacturing and distribution facilities of the Company’s Global Pet Supplies business. In addition, certain corporate finance functions were shifted to the
Company’s global headquarters in Atlanta, Georgia. The Successor Company recorded $5 of pretax restructuring and related charges during the one month
period ended September 30, 2009. The Predecessor Company recorded $(715) of restructuring and related charges during the eleven month period ended
August 30, 2009 to adjust prior estimates and eliminate the accrual. No pretax restructuring and related charges were recorded during Fiscal 2008 and Fiscal
2007. Integration initiatives are now complete.
Effective October 1, 2006, initiatives to integrate the activities of the Home and Garden Business into the Company’s operations in Madison,
Wisconsin were suspended. The Successor Company recorded $(137) of pretax and restructuring and related charges during the one month period ended
September 30, 2009. The Predecessor Company recorded $1,118, $125, and $4,487 of pretax restructuring and related charges during the eleven month
period ended August 30, 2009, Fiscal 2008 and Fiscal 2007, respectively, representing the finalization of expenditures in connection with the integration of
the United home and garden business. The Company recorded pretax restructuring and related charges of $31,707 since the inception of the initiatives.
Integration activities within Global Pet Supplies were substantially complete as of September 30, 2009. Global Pet Supplies integration activities
consisted primarily of the rationalization of manufacturing facilities and the optimization of the distribution network. As a result of these integration
initiatives, two pet supplies facilities were closed in 2005, one in Brea, California and the other in Hazleton, Pennsylvania, one pet supply facility was
closed in 2006, in Hauppauge, New York and one pet supply facility was closed in 2007 in Moorpark, California. The Successor Company recorded no
pretax and restructuring and related charges during the one month period ended September 30, 2009. The Predecessor Company recorded $2,327, $3,041
and $22,446, of pretax restructuring and related charges during the eleven month period ended August 30, 2009, Fiscal 2008 and Fiscal 2007, respectively,
representing the finalization of expenditures in connection with its integration activities within the Global Pet Supplies business. The Company has recorded
pretax restructuring and related charges of $36,889 since the inception of the integration activities within Global Pet Supplies.
During the fiscal year ended September 30, 2005, the Predecessor Company also announced the closure of a zinc carbon manufacturing facility in
Breitenbach, France within Global Batteries and Personal Care. The Successor Company recorded no pretax restructuring and related charges during the one
month period ended September 30, 2009. The Predecessor Company recorded $(7), $0 and $485 of pretax restructuring and related charges during the
eleven month period ended August 30, 2009, Fiscal 2008 and Fiscal 2007 in connection with this closure. The costs associated with the initiative are
complete and totaled $10,948.
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