Rayovac 2009 Annual Report Download - page 69

Table of Contents
Index to Financial Statements
addition, certain corporate functions were shifted to our global headquarters in Atlanta, Georgia. 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 de minimis restructuring and related
charges in Fiscal 2008, and $5 million in Fiscal 2007, in connection with the integration of the United home and garden business.
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 $3 million
and $22 million of pretax restructuring and related charges during Fiscal 2008 and Fiscal 2007, respectively.
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. 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 the 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 approximately $(1) million in pretax restructuring and related charges, representing the
true−up of the reserve balance, and $7 million of pretax restructuring and related charges during Fiscal 2008 and Fiscal 2007, respectively.
We have implemented a series of initiatives within our Global Batteries & Personal Care business segment in Latin America to reduce operating
costs. 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. In connection with the Latin American Initiatives, we recorded de
minimis pretax restructuring and related charges during Fiscal 2008 and approximately $11 million during Fiscal 2007.
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. We recorded approximately
$20 million and $53 million of pretax restructuring and related charges during Fiscal 2008 and Fiscal 2007, respectively, in connection with the Global
Realignment Initiatives.
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 include the exit of our battery manufacturing facility in Ningbo Baowang China. We recorded approximately $16
million of pretax restructuring and related charges during Fiscal 2008 in connection with the Ningbo Exit Plan.
Goodwill and Intangibles Impairment. ASC 350 requires companies to test goodwill and indefinite−lived intangible assets for impairment annually,
or more often if an event or circumstance indicates that an impairment loss may have been incurred. In Fiscal 2008 and Fiscal 2007, we tested our goodwill
and indefinite−lived intangible assets. As a result of this testing, we recorded a non−cash pretax impairment charge of $861 million
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