Rayovac 2009 Annual Report Download - page 58

Table of Contents
Index to Financial Statements
Effective October 1, 2006, we suspended initiatives to integrate the activities of the Home and Garden Business into our operations in Madison,
Wisconsin. We recorded $1 million of restructuring and related charges during Fiscal 2009 and de minimis restructuring and related charges in Fiscal 2008
in connection with the integration of the United home and garden business. We have recorded pretax restructuring and related charges of approximately $32
million since the inception of this initiative.
Integration activities within Global Pet Supplies were substantially complete as of September 30, 2007. Global Pet Supplies integration activities
consisted primarily of the rationalization of manufacturing facilities and the optimization of our 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. We recorded approximately $2 million
and $3 million of pretax restructuring and related charges during Fiscal 2009 and Fiscal 2008, respectively. We have recorded pretax restructuring and
related charges of approximately $37 million since the inception of the integration activities within Global Pet Supplies.
We have implemented a series of initiatives in the Global Batteries & Personal Care segment in Europe to reduce operating costs and rationalize our
manufacturing structure (the “European Initiatives”). In connection with the European Initiatives, which are substantially complete, we implemented a series
of initiatives within the Global Batteries & Personal Care segment in Europe to reduce operating costs and rationalize our manufacturing structure. These
initiatives include the relocation of certain operations at our Ellwangen, Germany packaging center to our Dischingen, Germany battery plant, transferring
private label battery production at our Dischingen, Germany battery plant to our manufacturing facility in China and restructuring Europe’s sales, marketing
and support functions. In connection with the European Initiatives, we recorded de minimis pretax restructuring and related charges in Fiscal 2009 and
approximately $(1) million in pretax restructuring and related charges, representing the true−up of reserve balances, during Fiscal 2008. We have recorded
pretax restructuring and related charges of approximately $27 million since the inception of the European Initiatives.
We have implemented a series of initiatives within our Global Batteries & Personal Care business segment in Latin America to reduce operating costs
(the “Latin American Initiatives”). In connection with the Latin American Initiatives, which are substantially complete, we implemented a series of
initiatives within the Global Batteries & Personal Care segment in Latin America to reduce operating costs. The initiatives include the reduction of certain
manufacturing operations in Brazil and the restructuring of management, sales, marketing and support functions. We recorded de minimis pretax
restructuring and related charges during both Fiscal 2009 and Fiscal 2008 in connection with the Latin American Initiatives. We have recorded pretax
restructuring and related charges of approximately $11 million since the inception of the Latin American Initiatives.
In Fiscal 2007, we began managing our 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, our global operations organization, which had previously been
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 12, Segment Results, of Notes to Consolidated Financial Statements
included in this Annual Report on Form 10−K for additional discussion on the realignment of our operating segments. In connection with these changes we
undertook a number of cost reduction initiatives, primarily headcount reductions, at the corporate and operating segment levels (the “Global Realignment
Initiatives”). We recorded approximately $11 million and $20 million of pretax restructuring and related charges during Fiscal 2009 and Fiscal 2008,
respectively, in connection with the Global Realignment Initiatives. Costs associated with these initiatives, which are expected to be incurred through
December 31, 2010, relate primarily to severance and are projected at approximately $77 million.
During Fiscal 2008, we implemented an initiative within the Global Batteries & Personal Care segment to reduce operating costs and rationalize our
manufacturing structure. These initiatives, which are substantially complete, include the exit of our battery manufacturing facility in Ningbo Baowang
China (“Ningbo”) (the
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