Rayovac 2013 Annual Report Download - page 13

Lung Metal Industry Co. Ltd., a Taiwan Corporation (“TLM Taiwan”), which is involved in the production of
residential locksets. For information pertaining to the Hardware Acquisition, see Note 15, “Acquisitions” of
Notes to Consolidated Financial Statements, included in this Annual Report on Form 10-K.
We manufacture and market alkaline, zinc carbon and hearing aid batteries, herbicides, insecticides and
repellants and specialty pet supplies. We design and market rechargeable batteries, battery-powered lighting
products, electric shavers and accessories, grooming products and hair care appliances. We also design, market
and distribute a broad range of branded small household appliances and personal care products. Our
manufacturing and product development facilities are located in the United States (“U.S.”), Europe, Latin
America and Asia. Substantially all of our rechargeable batteries, chargers and portable lighting products,
shaving and grooming products, small household appliances and personal care products are manufactured by
third-party suppliers, primarily located in Asia.
With the addition of the HHI Business, we design, manufacture, market, distribute and sell certain hardware,
home improvement and plumbing products, and are a leading U.S. provider of residential locksets and builders’
hardware and a leading provider of faucets. The HHI Business has a broad portfolio of recognized brands names,
including Kwikset, Weiser, Baldwin, National Hardware, Stanley, FANAL and Pfister, as well as patented
technologies such as Smartkey, a rekeyable lockset technology, and Smart Code Home Connect. HHI Business
customers include retailers, non-retailers and homebuilders. The HHI Business has sales offices, manufacturing
facilities and distribution centers in the U.S., Canada, Mexico and Asia.
We sell our products in approximately 140 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,
Dingo, Nature’s Miracle, Spectracide, Cutter, Hot Shot, Black & Decker, George Foreman, Russell Hobbs,
Farberware, Black Flag, FURminator, the previously mentioned HHI Business brands and various other brands.
Our diversified global branded consumer products have positions in seven major product categories:
consumer batteries; small appliances; pet supplies; electric shaving and grooming; electric personal care; home
and garden controls; and hardware and home improvement, which consists of the recently acquired HHI
Business. Our chief operating decision-maker manages the businesses in four vertically integrated, product-
focused reporting segments: (i) Global Batteries & Appliances, which consists of our worldwide battery, electric
shaving and grooming, electric personal care, and small appliances primarily in the kitchen and home product
categories (“Global Batteries & Appliances”); (ii) Global Pet Supplies, which consists of our worldwide pet
supplies business (“Global Pet Supplies”); (iii) Home and Garden Business, which consists of our home and
garden and insect control business (the “Home and Garden Business”); and (iv) Hardware & Home
Improvement, which consists of the recently acquired HHI Business (“Hardware & Home Improvement”).
Management reviews our performance based on these segments. For information pertaining to our business
segments, see Note 11, “Segment Information” of Notes to Consolidated Financial Statements, included in this
Annual Report on Form 10-K for further information on our operating segments.
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.
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