Rayovac 2008 Annual Report Download - page 177

Table of Contents
Index to Financial Statements
SPECTRUM BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
The following table summarizes the remaining accrual balance associated with the 2006 initiatives and activity that have occurred during Fiscal 2008:
European Initiatives Summary
Termination
Benefits
Other
Costs Total
Accrual balance at September 30, 2007 $ 5,224 $ — $ 5,224
Provisions (830) (58) (888)
Cash expenditures (446) (401) (847)
Non-cash items (894) 938 44
Accrual balance at September 30, 2008 $ 3,054 $ 479 $ 3,533
Expensed as incurred(A) $ — $ 181 $ 181
(A) Consists of amounts not impacting the accrual for restructuring and related charges.
2005 Restructuring Initiatives
In connection with the acquisitions of United and Tetra in 2005, the Company implemented a series of initiatives to optimize the global resources of the
combined companies. These initiatives included: integrating all of United’s home and garden administrative services, sales and customer service functions into
the Company’s operations in Madison, Wisconsin; converting all information systems to SAP; consolidating United’s home and garden manufacturing and
distribution locations in North America; rationalizing the North America supply chain; and consolidating administrative, manufacturing and distribution facilities
of the Company’s Global Pet Supplies business. In addition, certain corporate finance functions were shifted to the Company’s global headquarters in Atlanta,
Georgia.
Effective October 1, 2006, initiatives to integrate the activities of the Home and Garden Business into the Company’s operations in Madison, Wisconsin
were suspended. The Company recorded $125, $4,487, and $21,424 of pretax restructuring and related charges during Fiscal 2008, 2007 and 2006, respectively,
representing the finalization of expenditures in connection with the integration of the United home and garden business. The Company recorded pretax
restructuring and related charges of $30,726 since the inception of the initiatives.
Integration activities within Global Pet Supplies were substantially complete as of September 30, 2008. Global Pet Supplies integration activities consisted
primarily of the rationalization of manufacturing facilities and the optimization of the distribution network. As a result of these integration initiatives, two pet
supplies facilities were closed in 2005, one in Brea, California and the other in Hazleton, Pennsylvania, one pet supply facility was closed in 2006, in Hauppauge,
New York and one pet supply facility was closed in 2007 in Moorpark, California. The Company recorded $3,041, $22,446 and $8,622 of pretax restructuring
and related charges during Fiscal 2008, 2007 and 2006, respectively, representing the finalization of expenditures in connection with its integration activities
within the Global Pet Supplies business. The Company has recorded pretax restructuring and related charges of $34,562 since the inception of the integration
activities within Global Pet Supplies.
During the fiscal year ended September 30, 2005, the Company also announced the closure of a zinc carbon manufacturing facility in Breitenbach, France
within Global Batteries and Personal Care. The Company recorded no pretax restructuring and related charges during Fiscal 2008 in connection with this closure.
The Company recorded $485 and $259 in Fiscal 2007 and 2006, respectively. The costs associated with the initiative are complete and totaled $10,955.
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Source: Spectrum Brands, Inc, 10-K, December 10, 2008