Rayovac 2010 Annual Report Download - page 169

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SPECTRUM BRANDS HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
2009 Restructuring Initiatives
The Company implemented a series of initiatives within the Global Batteries & Personal Care segment, the
Global Pet Supplies segment and the Home and Garden segment to reduce operating costs as well as evaluate the
Company’s opportunities to improve its capital structure (the “Global Cost Reduction Initiatives”). These
initiatives include headcount reductions within each of the Company’s segments and the exit of certain facilities
in the U.S. related to the Global Pet Supplies segment. These initiatives also included consultation, legal and
accounting fees related to the evaluation of the Predecessor Company’s capital structure. The Successor
Company recorded $18,443 and $1,550 of pretax restructuring and related charges during Fiscal 2010 and the
period from August 31, 2009 through September 30, 2009, respectively. The Predecessor Company recorded
$18,850 of pretax restructuring and related charges during the period from October 1, 2008 through August 30,
2009 related to the Global Cost Reduction Initiatives. Costs associated with these initiatives since inception,
which are expected to be incurred through March 31, 2014, are projected at approximately $65,500.
Global Cost Reduction Initiatives Summary
The following table summarizes the remaining accrual balance associated with the Global Cost Reduction
Initiatives and activity that occurred during Fiscal 2010:
Termination
Benefits
Other
Costs Total
Accrual balance at September 30, 2009 ................................ $4,180 $ 84 $ 4,264
Provisions ....................................................... 5,101 5,107 10,208
Cash expenditures ................................................. (3,712) (1,493) (5,205)
Non-cash items ................................................... 878 307 1,185
Accrual balance at September 30, 2010 ................................ $6,447 $ 4,005 $10,452
Expensed as incurred(A) ............................................ $1,796 $ 6,439 $ 8,235
(A) Consists of amounts not impacting the accrual for restructuring and related charges.
The following table summarizes the expenses incurred by the Successor Company during Fiscal 2010, the
cumulative amount incurred from inception of the initiative through September 30, 2010 and the total future
expected costs to be incurred associated with the Global Cost Reduction Initiatives by operating segment:
Global
Batteries and
Personal Care
Global Pet
Supplies
Home and
Garden Corporate Total
Restructuring and related charges during Fiscal
2010 ..................................... $2,437 $ 6,754 $ 9,252 $ — $18,443
Restructuring and related charges since initiative
inception .................................. $7,039 $10,210 $14,004 $7,591 $38,844
Total future estimated restructuring and related
charges expected to be incurred ................ $ — $20,300 $ 6,500 $ — $26,800
2008 Restructuring Initiatives
The 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
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