Rayovac 2003 Annual Report Download - page 59

we originally anticipated. All activities associated with the 2002 restructuring activities have been completed. A summary of the
2002 restructuring activities follows:
Termination Other
2002 Restructuring Summary Benefits Costs Total
Expense accrued $ 1,200 $ 1,400 $ 2,600
Change in estimate — (400) (400)
Expense as incurred — 200 200
Cash expenditures (1,100) (200) (1,300)
Non cash charges — (1,000) (1,000)
Balance September 30, 2002 100 — 100
Cash expenditures (100) — (100)
Balance September 30, 2003 $ — $ — $ —
During 2003, the Company recorded restructuring and related charges including: (i) approximately $13,000 of employee termination
benefits for approximately 650 notified employees and non cash costs of approximately $700 associated with the write-off of pension
intangible assets reflecting the curtailment of the Company’s Madison, Wisconsin packaging facility pension plan, (ii) approximately
$12,800 of equipment, inventory and other asset write-offs primarily reflecting the abandonment of equipment and inventory asso-
ciated with the closure of the Mexico City, Mexico plant and inventory and fixed asset impairments related to the closure of the
Company’s Wisconsin packaging and distribution locations, (iii) approximately $6,400 of other expenses which include, distributor
termination costs of approximately $900, research and development contract termination costs of approximately $500, and other
legal and facility shutdown expenses of approximately $5,000.
During 2003, restructuring and related charges include amounts related to: (i) the closure in October 2002 of the Company’s Mexico
City, Mexico plant and integration of production into the Company’s Guatemala City, Guatemala manufacturing location, resulting
in charges of approximately $6,200, including termination payments of approximately $1,400, fixed asset and inventory impairments
of approximately $4,300, and other shutdown related expenses of approximately $500, (ii) the closure of operations at the Company’s
Madison, Wisconsin packaging facility and Middleton, Wisconsin distribution center and combination of the two operations into a
new leased complex currently being built in Dixon, Illinois resulting in charges of approximately $13,800, including termination
costs of approximately $2,700 and non cash costs of approximately $700 associated with the write-off of pension intangible assets
reflecting the curtailment of the Company’s Madison, Wisconsin packaging facility pension plan, fixed asset and inventory impair-
ments of approximately $7,200, and relocation expenses and other shutdown related expenses of approximately $3,200, and (iii) a
series of restructuring initiatives impacting the Company’s sales, marketing, operations and administrative functions in Europe,
North America, and Latin America resulting in charges of approximately $12,900, including termination benefits of approximately
$8,900, inventory and asset impairments of approximately $1,300, distributor termination costs of approximately $900, research and
development contract termination costs of approximately $500, and other costs primarily reflecting legal and other expenses of
approximately $1,300.
During 2003, restructuring and related charges included in cost of goods sold of approximately $21,400 include amounts related
to: (i) the closure in October 2002 of the Company’s Mexico City, Mexico plant and integration of production into the Company’s
Guatemala City, Guatemala manufacturing location, resulting in charges of approximately $6,200, including termination payments
of approximately $1,400, fixed asset and inventory impairments of approximately $4,300, and other shutdown related expenses of
approximately $500, (ii) the closure of operations at the Company’s Madison, Wisconsin packaging facility and combination with
the Company’s Middleton, Wisconsin distribution center into a new leased complex in Dixon, Illinois resulting in charges of approx-
imately $12,400, including termination costs of approximately $2,400 and non cash pension curtailment costs of approximately $700,
fixed asset and inventory impairments of approximately $6,900, and relocation expenses and other shutdown related expenses of
approximately $2,400, and (iii) a series of restructuring initiatives impacting the Company’s manufacturing functions in Europe,
North America, and Latin America resulting in charges of approximately $2,800, including termination benefits of approximately
$1,800 and inventory and asset impairments of approximately $1,000.
Notes to Consolidated Financial Statements
Rayovac Corporation and Subsidiaries
(In thousands, except per share amounts)