Rayovac 2014 Annual Report Download - page 50

Download and view the complete annual report

Please find page 50 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

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. All references to Fiscal
2014, Fiscal 2013 and Fiscal 2012 refer to fiscal year periods ended September 30, 2014, 2013 and 2012,
respectively.
Spectrum Brands Holdings, Inc., a Delaware corporation (“SB Holdings” or the “Company”), is a
diversified global branded consumer products company. 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 October 2, 2014, we completed the acquisition of Tell Manufacturing, Inc., a leading U.S. manufacturer
and distributor of commercial doors, locks and hardware. On September 23, 2014, we entered into an agreement
with Procter & Gamble (“P&G”) to acquire P&G’s European pet food business, consisting of the complementary
IAMS and Eukanuba premium brands for dogs and cats. This acquisition is expected to close in the second
quarter of the fiscal year ending September 30, 2015 (“Fiscal 2015”).
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. We also 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. 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.
We sell our products in approximately 160 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, Kwikset, Weiser, Baldwin, National Hardware, Stanley and Pfister brands.
We also have patented technologies such as Smartkey, a rekeyable lockset technology, and Smart Code Home
Connect.
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. 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 (“Home and Garden
38