Rayovac 2010 Annual Report Download - page 68

The following table summarizes all restructuring and related charges we incurred in Fiscal 2010 and Fiscal
2009 (in millions):
2010 2009
Costs included in cost of goods sold:
Latin America Initiatives:
Termination benefits ....................................... $— $ 0.2
Global Realignment Initiatives:
Termination benefits ....................................... 0.2 0.3
Other associated costs ...................................... (0.1) 0.9
Ningbo Exit Plan:
Termination benefits ....................................... — 0.9
Other associated costs ...................................... 2.1 8.6
Global Cost Reduction Initiatives:
Termination benefits ....................................... 2.6 0.2
Other associated costs ...................................... 2.3 2.3
Total included in cost of goods sold ............................... $ 7.1 $13.4
Costs included in operating expenses:
United & Tetra integration:
Termination benefits ....................................... $— $ 2.3
Other associated costs ...................................... — 0.3
European Initiatives:
Termination benefits ....................................... (0.1) —
Global Realignment Initiatives:
Termination benefits ....................................... 5.4 7.1
Other associated costs ...................................... (1.9) 3.5
Ningbo Exit Plan:
Other associated costs ...................................... — 1.3
Global Cost Reduction Initiatives:
Termination benefits ....................................... 4.3 6.6
Other associated costs ...................................... 9.3 11.3
Total included in operating expenses .............................. $17.0 $32.4
Total restructuring and related charges ............................. $24.1 $45.8
In Fiscal 2007, we began managing our 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, our global operations organization, which had previously been 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 we
undertook a number of cost reduction initiatives, primarily headcount reductions, at the corporate and operating
segment levels (the “Global Realignment Initiatives”). We recorded approximately $4 million and $11 million of
pretax restructuring and related charges during Fiscal 2010 and Fiscal 2009, respectively, in connection with the
Global Realignment Initiatives. Costs associated with these initiatives, which are expected to be incurred through
June 30, 2011, relate primarily to severance and are projected at approximately $89 million.
During Fiscal 2008, we implemented an initiative within the Global Batteries & Personal Care segment to
reduce operating costs and rationalize our manufacturing structure. These initiatives, which are substantially
complete, include the exit of our battery manufacturing facility in Ningbo Baowang China (“Ningbo”) (the
“Ningbo Exit Plan”). We recorded approximately $2 million and $11 million of pretax restructuring and related
charges during Fiscal 2010 and Fiscal 2009, respectively, in connection with the Ningbo Exit Plan. We have
recorded pretax and restructuring and related charges of approximately $29 million since the inception of the
Ningbo Exit Plan.
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