Rayovac 2002 Annual Report Download - page 61

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Rayovac Corporation and Subsidiaries
(In thousands, except per share amounts)
(15) Special Charges
During 1999, the Company recorded special charges as follows: (i) $2,528 of employee termination benefits for 43 employees related to organizational
restructuring in the U.S. and Europe, (ii) $1,300 of charges related to the discontinuation of the manufacturing of silver-oxide cells at the Company’s
Portage, Wisconsin, facility, and (iii) $2,100 of charges related to the termination of non-performing foreign distributors. The Company also recognized
special charges of $803 related to the investigation of financing options and developing organizational strategies for the Latin American acquisition.
A summary of the 1999 restructuring activities follows:
1999 Restructuring Summary
Termination Other
Benefits Costs Total
Expense accrued $ 2,500 $ 3,400 $ 5,900
Cash expenditures (200) — (200)
Balance September 30, 1999 $ 2,300 $ 3,400 $ 5,700
Change in estimate — 100 100
Cash expenditures (2,200) — (2,200)
Non-cash charges — (3,300) (3,300)
Balance September 30, 2000 $ 100 $ 200 $ 300
Cash expenditures (100) — (100)
Non-cash charges — (200) (200)
Balance September 30, 2001 $ — $ — $ —
During 2001, the Company recorded special charges related to: (i) an organizational restructuring in the U.S., (ii) manufacturing and distribution cost
rationalization initiatives in the Company’s Tegucigalpa, Honduras and Mexico City, Mexico manufacturing facilities and in our European operations,
(iii) the closure of the Company’s Wonewoc, Wisconsin, manufacturing facility, (iv) the rationalization of uneconomic manufacturing processes at the
Company’s Fennimore, Wisconsin, manufacturing facility, and rationalization of packaging operations and product lines, and (v) costs associated with
our June 2001 secondary offering. The amount recorded includes $9,100 of employee termination benefits for approximately 570 employees, $9,900 of
equipment, inventory, and other asset write-offs, and $2,000 of other expenses. A summary of the 2001 restructuring activities follows:
2001 Restructuring Summary
Termination Other
Benefits Costs Total
Expense accrued $ 5,000 $11,000 $16,000
Change in estimate 4,400 100 4,500
Expense as incurred 700 1,100 1,800
Cash expenditures (5,800) (1,300) (7,100)
Non-cash charges — (9,300) (9,300)
Balance September 30, 2001 $ 4,300 $ 1,600 $ 5,900
Change in estimate (1,000) (300) (1,300)
Cash expenditures (3,100) — (3,100)
Non-cash charges — (700) (700)
Balance September 30, 2002 $ 200 $ 600 $ 800
During 2002, the Company announced a restructuring initiative in Latin America including: (i) the closure of the Company’s Santo Domingo,
Dominican Republic manufacturing operations, and (ii) outsourcing a portion of its heavy duty battery production, previously manufactured at its
Mexico City, Mexico location. The amount recorded includes $1,200 of employee termination benefits for approximately 115 employees, $900 of
equipment, inventory, and other asset write-offs, and $300 of other expenses. A summary of the 2002 restructuring activities follows: