Rayovac 2014 Annual Report Download - page 131

Download and view the complete annual report

Please find page 131 of the 2014 Rayovac annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 148

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148

SPECTRUM BRANDS HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
(Amounts in thousands, except per share figures)
The following table summarizes restructuring and related charges incurred by type of charge:
2014 2013 2012
Cost of goods sold:
Global Expense Rationalization initiatives:
Termination benefits ............................................ $ 971 $ 2 $ —
Other associated costs ........................................... 37 — —
Global Cost Reduction initiatives:
Termination benefits ............................................ 2 228 2,941
Other associated costs ........................................... 62 3,330 6,894
Other restructuring initiatives:
Termination benefits ............................................ — 146 —
Other associated costs ........................................... 2,641 6,278 —
Total included in cost of goods sold .................................... $ 3,713 $ 9,984 $ 9,835
Costs included in operating expenses:
HHI Business Rationalization initiatives:
Termination benefits ............................................ $ 4,511 $ — $ —
Global Expense Rationalization initiatives:
Termination benefits ............................................ 5,497 10,259 —
Other associated costs ........................................... 6,868 1,056 —
Global Cost Reduction initiatives:
Termination benefits ............................................ 244 6,351 3,079
Other associated costs ........................................... 1,010 6,443 5,776
Other restructuring initiatives:
Other associated costs ........................................... 1,052 (81) 901
Total included in operating expenses .................................... $19,182 $24,028 $ 9,756
Total restructuring and related charges .................................. $22,895 $34,012 $19,591
HHI Business Rationalization Initiatives
During the fourth quarter of Fiscal 2014, the Company implemented a series of initiatives throughout the
Hardware & Home Improvement business segment to reduce operating costs and exit low margin business
outside the U.S. (the “HHI Business Rationalization Initiatives”). These initiatives include headcount reductions,
the exit of certain facilities and the sale of a portion of the Hardware & Home Improvement operations in
Canada. Costs associated with these initiatives, which are expected to be incurred through September 30, 2016,
are projected to total approximately $9,000.
The Company recorded $4,511 of pretax restructuring and related charges during Fiscal 2014 related to the
HHI Business Rationalization Initiatives.
Global Expense Rationalization Initiatives Summary
During the third quarter of the fiscal year ended September 30, 2013, the Company implemented a series of
initiatives throughout the Company to reduce operating costs (the “Global Expense Rationalization Initiatives”).
These initiatives consist of headcount reductions in the Global Batteries & Appliances and Global Pet Supplies
segments and in Corporate. Costs associated with these initiatives, which are expected to be incurred through
September 30, 2015, are currently projected to total approximately $46,500.
119