Rayovac 2009 Annual Report Download - page 206

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 Latin American Initiatives and activity that occurred during Fiscal
2009:
Latin American Initiatives Summary
Termination
Benefits Other Costs Total
Accrual balance at September 30, 2008 (Predecessor Company) $ 124 $ 777 $ 901
Provisions (33) — (33)
Cash expenditures (373) — (373)
Non−cash items — (164) (164)
Accrual balance at September 30, 2009 (Successor Company) $ (282) $ 613 $ 331
Expensed as incurred(A) $ 240 $ — $ 240
(A) Consists of amounts not impacting the accrual for restructuring and related charges.
In Fiscal 2007, the Predecessor Company began managing its business in three vertically integrated, product−focused reporting segments; Global
Batteries & Personal Care, Global Pet Supplies and the Home and Garden Business. As part of this realignment, the Company’s Global Operations
organization, previously included in corporate expense, consisting of research and development, manufacturing management, global purchasing, quality
operations and inbound supply chain, is now included in each of the operating segments. (See also Note 12, Segment Results, for additional discussion on
the Company’s realignment of its operating segments.) In connection with these changes the Company undertook a number of cost reduction initiatives,
primarily headcount reductions, at the corporate and operating segment levels (the “Global Realignment Initiatives”). The Successor Company recorded
$138 of restructuring and related charges during the one month period ended September 30, 2009. The Predecessor Company recorded $11,635 of pretax
restructuring and related charges during the eleven month period ended August 30, 2009, respectively, related to the Global Realignment Initiatives. The
Predecessor Company also recorded $20,161 and $53,048 of pretax restructuring and related charges during Fiscal 2008 and Fiscal 2007, respectively, in
connection with the Global Realignment Initiatives. Costs associated with these initiatives, which are expected to be incurred through December 31, 2010,
relate primarily to severance and are projected at approximately $86,000, the majority of which will be cash costs.
The following table summarizes the remaining accrual balance associated with the Global Realignment Initiatives and activity that have occurred
during Fiscal 2009:
Global Realignment Initiatives Summary
Termination
Benefits Other Costs Total
Accrual balance at September 30, 2008 (Predecessor Company) $ 17,575 $3,688 $21,263
Provisions 6,331 1,118 7,449
Cash expenditures (9,385) (598) (9,983)
Non−cash items 60 (530) (470)
Accrual balance at September 30, 2009 (Successor Company) $ 14,581 $3,678 $18,259
Expensed as incurred(A) $ 1,089 $3,235 $ 4,324
(A) Consists of amounts not impacting the accrual for restructuring and related charges.
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