Rayovac 2009 Annual Report Download - page 140

Table of Contents
Index to Financial Statements SPECTRUM BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except per share amounts)
(1) Description of Business
Spectrum Brands, Inc., a Wisconsin corporation, and each of its wholly owned United States (“U.S.”) subsidiaries (collectively, the “Debtors”) filed
voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code (the “Bankruptcy Code”), in the U.S. Bankruptcy Court for the Western District of Texas
(the “Bankruptcy Court”) on February 3, 2009. On August 28, 2009 (the “Effective Date”), the Debtors emerged from Chapter 11 of the Bankruptcy Code.
As of the Effective Date and pursuant to the Debtors’ confirmed plan of reorganization, Spectrum Brands, Inc. converted from a Wisconsin corporation to a
Delaware corporation.
Unless the context indicates otherwise, Spectrum Brands, Inc. is used interchangeably in this Annual Report on Form 10−K to refer both to the
Delaware corporation and its Wisconsin predecessor, and the terms the “Company,” “Spectrum,” “Spectrum Brands,” are used to refer to Spectrum Brands,
Inc. and its subsidiaries both before and after the Effective Date. The term “Predecessor Company” refers only to Spectrum Brands, Inc., the Company’s
Wisconsin predecessor, and its subsidiaries prior to the Effective Date and the term “Successor Company” refers only to Spectrum Brands, Inc, the
Delaware successor, and its subsidiaries subsequent to the Effective Date.
Prior to and including August 30, 2009, all operations of the business resulted from the operations of the Predecessor Company. All conditions
required for the adoption of fresh−start reporting were met upon emergence from Chapter 11 of the Bankruptcy Code on the Effective Date. However in
light of proximity of that date to the Company’s August accounting period close, which was August 30, 2009, the Company elected to adopt a convenience
date of August 30, 2009, (the “Fresh−Start Adoption Date”) for recording fresh−start reporting. As a result, the fair value of the Predecessor Company’s
assets became the new basis for the Successor Company’s Consolidated Statement of Financial Position as of the Fresh−Start Adoption Date, and all
operations beginning August 31, 2009, are related to the Successor Company.
The Company and its subsidiaries is a global branded consumer products company with positions in six major product categories: consumer batteries;
pet supplies; electric shaving and grooming; electric personal care; portable lighting; and home and garden control.
The Company manages its business in three reportable segments: (i) Global Batteries & Personal Care, which consists of the Company’s worldwide
battery, shaving and grooming, personal care and portable lighting business (“Global Batteries & Personal Care”); (ii) Global Pet Supplies, which consists
of the Company’s worldwide pet supplies business (“Global Pet Supplies”); and (iii) Home and Garden Business, which consists of the Company’s lawn
and garden and insect control businesses (the “Home and Garden Business”).
The Company’s operations include the worldwide manufacturing and marketing of alkaline, zinc carbon and hearing aid batteries, as well as
aquariums and aquatic health supplies and the designing and marketing of rechargeable batteries, battery−powered lighting products, electric shavers and
accessories, grooming products and hair care appliances. The Company’s operations also include the manufacturing and marketing of specialty pet supplies.
The Company also manufactures and markets herbicides, insecticides and repellents in North America. The Company’s operations utilize manufacturing
and product development facilities located in the U.S., Europe, China and Latin America.
The Company sells its products in approximately 120 countries through a variety of trade channels, including retailers, wholesalers and distributors,
hearing aid professionals, industrial distributors and original equipment manufacturers and enjoys name recognition in its markets under the Rayovac,
VARTA and
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