Rayovac 2015 Annual Report Download - page 23

Home and Garden
The Home and Garden business sales force is geographically aligned with our key customers. We sell
primarily to home improvement centers, mass merchandisers, dollar stores, hardware stores, home and garden
distributors, and food and drug retailers primarily in the U.S.
Hardware & Home Improvement
The sales force of the Hardware & Home Improvement business is aligned by customer and geographic
region. We sell primarily to large retailers, non-retail distributors, home improvement centers, hardware stores,
home builders and other retailers.
Global Auto Care
The Global Auto Care business sales force is geographically aligned with key customers. We sell primarily
to big box auto, auto specialty retail, mass retailers, food and drug retailers, and convenience retailers. We market
our products in the U.S. through a number of channels and use a number of sales strategies. Sales personnel call
directly on major accounts and have support teams for supply and marketing. Our small regional and
convenience store customers are serviced by brokers and distributors. International distribution varies by region
and is often executed on a country-by-country basis. A majority of international sales are completed using
distributors.
Manufacturing, Raw Materials and Suppliers
The principal raw materials used in manufacturing our products are zinc, electrolytic manganese dioxide,
brass and steel that are sourced either on a global or regional basis. The prices of these raw materials are
susceptible to price fluctuations due to supply and demand trends, energy costs, transportation costs, government
regulations and tariffs, changes in currency exchange rates, price controls, general economic conditions and other
unforeseen circumstances. We have regularly engaged in forward purchase and hedging derivative transactions in
an attempt to effectively manage the raw material costs we expect to incur over the next 12 to 24 months.
Substantially all of our rechargeable batteries and chargers, portable lighting products, hair care and other
personal care products and our electric shaving and grooming products and small appliances are manufactured by
third party suppliers that are primarily located in the Asia-Pacific region. We maintain ownership of most of the
tooling and molds used by our suppliers.
We continually evaluate our manufacturing facilities’ capacity and related utilization. As a result of such
analyses, we have closed a number of manufacturing facilities during the past five years. In general, we believe
our existing facilities are adequate for our present and foreseeable needs.
Research and Development
Our research and development strategy is focused on new product development and performance
enhancements of our existing products. We plan to continue to use our strong brand names, established customer
relationships and significant research and development efforts to introduce innovative products that offer
enhanced value to consumers through new designs and improved functionality.
During the years ended September 30, 2015, 2014 and 2013, we invested $51.3 million, $47.9 million and
$43.3 million, respectively, in product research and development.
Patents and Trademarks
We use and maintain a number of trademarks in our business, including, among others, RAYOVAC,
VARTA, REMINGTON, GEORGE FOREMAN, RUSSELL HOBBS, FARBERWARE, TOASTMASTER,
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