Rayovac 2009 Annual Report Download - page 40

Table of Contents
Index to Financial Statements
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following is management’s discussion of the financial results, liquidity and other key items related to our performance and should be read in
conjunction with Item 6. Selected Financial Data and our Consolidated Financial Statements and related notes included in this Annual Report on Form
10−K. Certain prior year amounts have been reclassified to conform to the current year presentation. All references to Fiscal 2009, 2008 and 2007 refer to
fiscal year periods ended September 30, 2009, 2008 and 2007, respectively.
As further described below, on February 3, 2009, we and our 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, we 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 on and after the Effective Date. The term “New Spectrum,” however, refers only to Spectrum
Brands, Inc., our Delaware successor, and its subsidiaries, after the Effective Date, and the term “Old Spectrum,” refers only to Spectrum Brands, Inc., our
Wisconsin predecessor, and its subsidiaries prior to the Effective Date.
Introduction
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.
We manage our 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 our
worldwide pet supplies business (“Global Pet Supplies”); and (iii) the Home and Garden Business, which consists of our 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 United States, 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.
37