Rayovac 2013 Annual Report Download - page 50

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Introduction
The following is management’s discussion of the financial results, liquidity and other key items related to
our performance and should be read in conjunction with Item 6. Selected Financial Data and our Consolidated
Financial Statements and related notes included in this Annual Report on Form 10-K. Certain prior year amounts
have been reclassified to conform to the current year presentation. All references to Fiscal 2013, Fiscal 2012 and
Fiscal 2011 refer to fiscal year periods ended September 30, 2013, 2012 and 2011, respectively.
Spectrum Brands Holdings, Inc., a Delaware corporation (“SB Holdings” or the “Company”), is a
diversified global branded consumer products company. Spectrum Brands, Inc. (“Spectrum Brands”), is a wholly
owned subsidiary of SB Holdings. SB Holdings’ common stock trades on the New York Stock Exchange (the
“NYSE”) under the symbol “SPB.”
Unless the context indicates otherwise, the terms the “Company,” “Spectrum,” “we,” “our” or “us” are used
to refer to SB Holdings and its subsidiaries.
On December 17, 2012, we acquired the residential hardware and home improvement business (the “HHI
Business”) from Stanley Black & Decker, Inc. (“Stanley Black & Decker”), which includes (i) the equity
interests of certain subsidiaries of Stanley Black & Decker engaged in the business and (ii) certain assets of
Stanley Black & Decker used or held for use in connection with the business (the “Hardware Acquisition”). On
April 8, 2013, we completed the acquisition of certain assets of Tong 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.
Business Overview
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 brand 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.
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