Rayovac 2008 Annual Report Download - page 167

Table of Contents
Index to Financial Statements
SPECTRUM BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
Global strategic initiatives and financial objectives for each reportable segment are determined at the corporate level. Each reportable segment is
responsible for implementing defined strategic initiatives and achieving certain financial objectives and has a general manager responsible for the sales and
marketing initiatives and financial results for product lines within that segment.
Net sales and Cost of goods sold to other business segments have been eliminated. The gross contribution of intersegment sales is included in the segment
selling the product to the external customer. Segment net sales are based upon the segment from which the product is shipped.
The operating segment profits do not include restructuring and related charges, interest expense, interest income, impairment charges and income tax
expense. In connection with the realignment of operating segments in Fiscal 2007, as discussed above, expenses associated with the Company’s global operations
group, which consisted of research and development, manufacturing management, global purchasing, quality operations and inbound supply chain, which were
previously reflected in corporate expenses, are now included in the determination of operating segment profits. In addition, certain general and administrative
expenses necessary to reflect the operating segments on a stand alone basis and which were previously reflected as corporate expenses, have been included in the
determination of operating segment profits. Accordingly, corporate expenses include primarily general and administrative expenses associated with corporate
overhead and global long-term incentive compensation plans. Segment reporting results for Fiscal 2006 have been reclassified to conform to the changes
described above. All depreciation and amortization included in income from operations is related to operating segments or corporate expense. Costs are identified
to operating segments or corporate expense according to the function of each cost center.
All capital expenditures are related to operating segments. Variable allocations of assets are not made for segment reporting.
Segment information for Fiscal 2008, 2007 and 2006 is as follows:
Net sales to external customers
2008 2007 2006
Global Batteries & Personal Care $ 1,493,736 $ 1,431,475 $ 1,351,518
Global Pet Supplies 598,618 563,047 543,223
Home and Garden 595,656 570,165 567,505
Total segments $ 2,688,010 $ 2,564,687 $ 2,462,246
Depreciation and amortization
2008 2007 2006
Global Batteries & Personal Care $ 32,535 $ 33,660 $ 34,462
Global Pet Supplies 22,891 22,269 21,709
Home and Garden(A) 27,531 — 14,905
Total segments 82,957 55,929 71,076
Corporate 7,959 21,496 14,341
Total Depreciation and amortization $ 90,916 $ 77,425 $ 85,417
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Source: Spectrum Brands, Inc, 10-K, December 10, 2008