Rayovac 2013 Annual Report Download - page 125

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SPECTRUM BRANDS HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
(Amounts in thousands, except per share figures)
The Company sponsors a defined contribution pension plan for its domestic salaried employees, which
allows participants to make contributions by salary reduction pursuant to Section 401(k) of the Internal Revenue
Code. The Company also sponsors defined contribution pension plans for employees of certain foreign
subsidiaries. Company contributions charged to operations, including discretionary amounts, for Fiscal 2013,
Fiscal 2012 and Fiscal 2011 were $11,095, $1,935 and $4,999, respectively.
(11) Segment Information
The Company manages its business in four vertically integrated, product-focused reporting segments: (i) Global
Batteries & Appliances; (ii) Global Pet Supplies; (iii) Home and Garden Business; and (iv) Hardware & Home
Improvement.
The results of the HHI Business are included in the Company’s Consolidated Statement of Operations as of
and subsequent to December 17, 2012, the date of the Hardware Acquisition. The results of TLM Taiwan are
included in the Company’s Consolidated Statement of Operations as of and subsequent to its acquisition on
April 8, 2013. The financial results related to the HHI Business are reported as a separate business segment,
Hardware & Home Improvement.
Global strategic initiatives and financial objectives for each reportable segment are determined at the
corporate level. Each reportable segment is responsible for implementing defined strategic initiatives and
achieving certain financial objectives, and has a general manager responsible for the sales and marketing
initiatives and financial results for product lines within that segment.
Net sales and Cost of goods sold to other business segments have been eliminated. The gross contribution of
intersegment sales is included in the segment selling the product to the external customer. Segment net sales are
based upon the segment from which the product is shipped.
The operating segment profits do not include restructuring and related charges, acquisition and integration
related charges, impairment charges, interest expense, interest income and income tax expense. Expenses
associated with certain general and administrative functions necessary to reflect the operating segments on a
standalone basis have also been excluded in the determination of reportable segment profits. Corporate expenses
primarily include general and administrative expenses and the costs of global long-term incentive compensation
plans which are evaluated on a consolidated basis and not allocated to the Company’s operating segments. All
depreciation and amortization included in income from operations is related to operating segments or corporate
expense. Costs are identified to operating segments or corporate expense according to the function of each cost
center.
All capital expenditures are related to operating segments. Variable allocations of assets are not made for
segment reporting.
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