Rayovac 2010 Annual Report Download - page 12

appliances and personal care products. Our manufacturing and product development facilities are located in the
U.S., Europe, Latin America and Asia. Substantially all of our rechargeable batteries and chargers, shaving and
grooming products, small household appliances, personal care products and portable lighting products are
manufactured by third-party suppliers, primarily located in Asia.
We sell our products in approximately 120 countries through a variety of trade channels, including retailers,
wholesalers and distributors, hearing aid professionals, industrial distributors and original equipment
manufacturers (“OEMs”) and enjoy strong name recognition in our markets under the Rayovac, VARTA and
Remington brands, each of which has been in existence for more than 80 years, and under the Tetra, 8-in-1,
Spectracide, Cutter, Black & Decker, George Foreman, Russell Hobbs, Farberware and various other brands.
Global and geographic strategic initiatives and financial objectives are determined at the corporate level.
Each business segment is responsible for implementing defined strategic initiatives and achieving certain
financial objectives and has a general manager responsible for sales and marketing initiatives and the financial
results for all product lines within that business segment.
Our operating performance is influenced by a number of factors including: general economic conditions;
foreign exchange fluctuations; trends in consumer markets; consumer confidence and preferences; our overall
product line mix, including pricing and gross margin, which vary by product line and geographic market; pricing
of certain raw materials and commodities; energy and fuel prices; and our general competitive position,
especially as impacted by our competitors’ advertising and promotional activities and pricing strategies.
In November 2008, our board of directors committed to the shutdown of the growing products portion of the
Home and Garden Business, which includes the manufacturing and marketing of fertilizers, enriched soils, mulch
and grass seed, following an evaluation of the historical lack of profitability and the projected input costs and
significant working capital demands for the growing products portion of the Home and Garden Business for our
fiscal year ended September 30, 2009 (“Fiscal 2009”). We believe the shutdown was consistent with what we
have done in other areas of our business to eliminate unprofitable products from our portfolio. As of March 29,
2009, we completed the shutdown of the growing products portion of the Home and Garden Business.
Accordingly, the presentation herein of the results of continuing operations excludes the growing products
portion of the Home and Garden Business for all periods presented. See Note 9, Discontinued Operations, to our
Consolidated Financial Statements included in this Annual Report on Form 10-K for further details on the
disposal of the growing products portion of the Home and Garden Business.
On December 15, 2008, prior to our Bankruptcy Filing, as defined below, Old Spectrum was advised that its
common stock would be suspended from trading on the NYSE prior to the opening of the market on
December 22, 2008. It was advised that the decision to suspend its common stock was reached in view of the fact
that it had recently fallen below the NYSE’s continued listing standard regarding average global market
capitalization over a consecutive 30 trading day period of not less than $25 million, the minimum threshold for
listing on the NYSE. Old Spectrum’s common stock was delisted from the NYSE effective January 23, 2009.
On March 18, 2010, the common stock of Spectrum Brands was listed on the NYSE. In connection with the
consummation of the Merger, on June 16, 2010 the common stock of Spectrum Brands was delisted from the
NYSE and the common stock of SB Holdings succeeded to its listing status under the symbol “SPB.”
As a result of our Bankruptcy Filing, we were able to significantly reduce our indebtedness. As a result of
the Merger, we were able to further reduce our outstanding debt leverage ratio. However, we continue to have a
significant amount of indebtedness relative to our competitors and paying down outstanding indebtedness
continues to be a priority for us. The Bankruptcy Filing is discussed in more detail under “Chapter 11
Proceedings.”
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