Rayovac 2009 Annual Report Download - page 4

Table of Contents
Index to Financial Statements PART I
ITEM 1. BUSINESS
General
We are 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 products.
As further described below, on February 3, 2009, Spectrum Brands, Inc., then 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 August 28, 2009 (the “Effective Date”), the Debtors emerged from
Chapter 11 of the Bankruptcy Code. Effective 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,” “we,” “our” or “us” are used to refer
to Spectrum Brands, Inc. and its subsidiaries both before and after the Effective Date. The terms “Old Spectrum” and “Predecessor Company,” however,
refer only to Spectrum Brands, Inc., our Wisconsin predecessor, and its subsidiaries prior to the Effective Date. The term “Successor Company” refers only
to Spectrum Brands, Inc., the Delaware corporation, and its subsidiaries after the Effective Date.
We manage our business in three reportable segments: (i) Global Batteries & Personal Care, which consists of our worldwide battery, shaving and
grooming, personal care and portable lighting business (“Global Batteries & Personal Care”); (ii) Global Pet Supplies, which consists of our worldwide pet
supplies business (“Global Pet Supplies”); and (iii) the Home and Garden Business, which consists of home and garden control product offerings, including
household insecticides, repellants and herbicides (the “Home and Garden Business”).
We manufacture and market alkaline, zinc carbon and hearing aid batteries, herbicides, insecticides and repellants and specialty pet supplies. We
design and market rechargeable batteries, battery−powered lighting products, electric shavers and accessories, grooming products and hair care appliances.
Our manufacturing and product development facilities are located in the U.S., Europe, Latin America and Asia. Substantially all of our rechargeable
batteries and chargers, shaving and grooming products, personal care products and portable lighting products are manufactured by third−party suppliers,
primarily located in Asia.
We sell our 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 (“OEMs”) and enjoy strong name recognition in our markets under the Rayovac,
VARTA and Remington brands, each of which has been in existence for more than 80 years, and under the Tetra, 8−in−1, Spectracide, Cutter and various
other brands.
Global and geographic strategic initiatives and financial objectives are determined at the corporate level. Each business segment is responsible for
implementing defined strategic initiatives and achieving certain financial objectives and has a general manager responsible for sales and marketing
initiatives and the financial results for all product lines within that business segment.
Our operating performance is influenced by a number of factors including: general economic conditions; foreign exchange fluctuations; trends in
consumer markets; consumer confidence and preferences; our overall
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