Rayovac 2010 Annual Report Download - page 171

SPECTRUM BRANDS HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
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. 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
$3,605 and $138 of restructuring and related charges during Fiscal 2010 and the period from August 31, 2009
through September 30, 2009, respectively. The Predecessor Company recorded $11,635 and $20,161 of pretax
restructuring and related charges during the period from October 1, 2008 through August 30, 2009 and Fiscal
2008, respectively, related to the Global Realignment Initiatives. Costs associated with these initiatives since
inception, which are expected to be incurred through June 30, 2011, relate primarily to severance and are
projected at approximately $89,000, the majority of which are cash costs.
The following table summarizes the remaining accrual balance associated with the Global Realignment
Initiatives and activity that have occurred during Fiscal 2010:
Global Realignment Initiatives Summary
Termination
Benefits
Other
Costs Total
Accrual balance at September 30, 2009 ................................ $14,581 $ 3,678 $18,259
Provisions ....................................................... 1,720 (1,109) 611
Cash expenditures ................................................. (7,657) (319) (7,976)
Non-cash items ................................................... 77 31 108
Accrual balance at September 30, 2010 ................................ $ 8,721 $ 2,281 $11,002
Expensed as incurred(A) ............................................ $ 3,828 $ (834) $ 2,994
(A) Consists of amounts not impacting the accrual for restructuring and related charges.
The following table summarizes the expenses incurred by the Successor Company during Fiscal 2010, the
cumulative amount incurred from inception of the initiative through September 30, 2010 and the total future
expected costs to be incurred associated with the Global Realignment Initiatives by operating segment:
Global
Batteries and
Personal Care
Home and
Garden Corporate Total
Restructuring and related charges during Fiscal 2010.......... $ (981) $ (796) $ 5,382 $ 3,605
Restructuring and related charges since initiative inception ..... $46,669 $6,762 $35,156 $88,587
Total future restructuring and related charges expected ........ $ — $ — $ 350 $ 350
2006 Restructuring Initiatives
The Company implemented a series of initiatives within the Global Batteries & Personal Care segment in
Europe to reduce operating costs and rationalize the Company’s manufacturing structure (the “European
Initiatives”). These initiatives, which are substantially complete, include the relocation of certain operations at
the Ellwangen, Germany packaging center to the Dischingen, Germany battery plant, transferring private label
battery production at the Company’s Dischingen, Germany battery plant to the Company’s manufacturing facility
in China and restructuring its sales, marketing and support functions. The Company recorded $(92) and $7 of
pretax restructuring and related charges during Fiscal 2010 and the period from August 31, 2009 through
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