Rayovac 2015 Annual Report Download - page 61

Liquid Fence—On January 2, 2014, the Company completed the acquisition of the Liquid Fence Company
(“Liquid Fence”), a producer of animal repellents. The results of Liquid Fence’s operations since January 2, 2014
are included in the Company’s Consolidated Statements of Operations for the years ended September 30, 2015
and 2014, as part of the Home and Garden segment.
HHI Business—On December 17, 2012, the Company completed the acquisition of the Hardware and Home
Improvement Business from Stanley Black & Decker (the “HHI Business”). A portion of the HHI Business,
consisting of the purchase of certain assets of TLM Taiwan, closed on April 8, 2013. The HHI Business is a
major manufacturer and supplier of residential locksets, residential builders’ hardware and faucets with a
portfolio of recognized brand names, including Kwikset, Weiser, Baldwin, National Hardware, Stanley and
Pfister, as well as patented technologies such as the SmartKey, a re-keyable lockset technology, and Smart Code
Home Connect. The results of the HHI Business operations since December 17, 2012 are included in the
Company’s Consolidated Statements of Operations for the years ended September 30, 2015, 2014 and 2013, as
part of the Hardware & Home Improvement segment. The results of the TLM Business operations since April 8,
2013 are included in the Company’s Consolidated Statements of Operations for the years ended September 30,
2015, 2014 and 2013, and as part of the Hardware and Home Improvement segment.
See Note 3, “Acquisitions” in the Notes to the Consolidated Financial Statements, included elsewhere
within this Annual Report, for further additional detail regarding acquisition activity.
Restructuring Activity
We continually seek to improve our operational efficiency, match our manufacturing capacity and product
costs to market demand and better utilize our manufacturing resources. We have undertaken various initiatives to
reduce manufacturing and operating costs. The most significant of these initiatives are outlined below.
HHI Business Rationalization Initiatives—During the fourth quarter of the fiscal year ended September 30,
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 of the U.S. These initiatives will include
headcount reductions, the exit of certain facilities and the sale of a portion of the global Hardware & Home
Improvement operations. Costs associated with these initiatives, which are expected to be incurred through
September 30, 2016, are projected to be approximately $15 million.
Global Expense Rationalization Initiatives—During the third quarter of the year ended September 30, 2013,
the Company implemented a series of initiatives to reduce operating costs. These initiatives consist of headcount
reductions in the Global Batteries & Appliances and Global Pet Supplies segments and in Corporate. Costs
associated with these initiatives are expected to be approximately $46 million and are anticipated to be incurred
through September 30, 2018.
Global Cost Reduction Initiatives—During the fiscal year ended September 30, 2009, the Company
implemented a series of initiatives within the Global Batteries & Appliances, the Global Pet Supplies and the
Home and Garden segments. These initiatives included headcount reductions and the exit of certain facilities
within each of these segments, as well as consultation, legal and accounting fees related to the evaluation of the
Company’s capital structure. Costs associated with the initiative, which was completed during the year ended
September 30, 2015, were $101.8 million.
See Note 4, “Restructuring and Related Charges” in the Notes to the Consolidated Financial Statements,
included elsewhere within this Annual Report, for additional detail regarding restructuring and related activity.
Refinancing Activity
During the year ended September 30, 2015, we refinanced a portion of our debt to improve leverage and
reduce borrowing costs. On May 20, 2015, in connection with the acquisition of AAG, we issued $1,000 million
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