Rayovac 2014 Annual Report Download - page 130

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SPECTRUM BRANDS HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
(Amounts in thousands, except per share figures)
Certain provisions of the Stockholder Agreement terminate on the date on which the Harbinger Parties or
HRG no longer constitutes a Significant Stockholder (as defined in the Stockholder Agreement). The Stockholder
Agreement terminates when any person (including the Harbinger Parties or HRG) acquires 90% or more of the
outstanding voting securities of SB Holdings.
Also in connection with the Merger, the Harbinger Parties and SB Holdings entered into a registration rights
agreement, dated as of February 9, 2010 (the “SB Holdings Registration Rights Agreement”), pursuant to which
the Harbinger Parties have, among other things and subject to the terms and conditions set forth therein, certain
demand and so-called “piggy back” registration rights with respect to their shares of SB Holdings common stock.
On September 10, 2010, the Harbinger Parties and HRG entered into a joinder to the SB Holdings Registration
Rights Agreement, pursuant to which, effective upon the consummation of the Share Exchange, HRG became a
party to the SB Holdings Registration Rights Agreement, entitled to the rights and subject to the obligations of a
holder thereunder.
(14) RESTRUCTURING AND RELATED CHARGES
The Company reports restructuring and related charges associated with manufacturing and related initiatives in
Cost of goods sold. Restructuring and related charges reflected in Cost of goods sold include, but are not limited
to, termination, compensation and related costs associated with manufacturing employees, asset impairments
relating to manufacturing initiatives, and other costs directly related to the restructuring or integration initiatives
implemented.
The Company reports restructuring and related charges associated with administrative functions, such as
initiatives impacting sales, marketing, distribution, or other non-manufacturing functions, in Operating expenses.
Restructuring and related charges reflected in Operating expenses include, but are not limited to, termination and
related costs, any asset impairments relating to the functional areas described above, and other costs directly
related to the initiatives.
The following table summarizes restructuring and related charges incurred by segment for Fiscal 2014,
Fiscal 2013 and Fiscal 2012:
2014 2013 2012
Cost of goods sold:
Global Batteries & Appliances ......................................... $ 648 $ 1,143 $ 5,094
Hardware & Home Improvement ....................................... 2,641 6,246 —
Global Pet Supplies ................................................. 424 2,595 4,741
Total restructuring and related charges in cost of goods sold ................. $ 3,713 $ 9,984 $ 9,835
Operating expenses:
Global Batteries & Appliances ......................................... $10,458 $13,627 $ 2,487
Hardware & Home Improvement ....................................... 5,628 — —
Global Pet Supplies ................................................. 2,563 8,556 5,395
Home and Garden ................................................... — 598 912
Corporate ......................................................... 533 1,247 962
Total restructuring and related charges in operating expenses ................ $19,182 $24,028 $ 9,756
Total restructuring and related charges .................................. $22,895 $34,012 $19,591
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