Rayovac 2010 Annual Report Download - page 80

Effective October 1, 2006, we suspended initiatives to integrate the activities of the Home and Garden
Business into our operations in Madison, Wisconsin. We recorded $1 million of restructuring and related charges
during Fiscal 2009 and de minimis restructuring and related charges in Fiscal 2008 in connection with the
integration of the United home and garden business.
Integration activities within Global Pet Supplies were substantially complete as of September 30, 2007.
Global Pet Supplies integration activities consisted primarily of the rationalization of manufacturing facilities and
the optimization of our distribution network. As a result of these integration initiatives, two pet supplies facilities
were closed in 2005, one in Brea, California and the other in Hazleton, Pennsylvania, one pet supply facility was
closed in 2006, in Hauppauge, New York and one pet supply facility was closed in 2007 in Moorpark, California.
We recorded approximately $2 million and $3 million of pretax restructuring and related charges during Fiscal
2009 and Fiscal 2008, respectively.
We have implemented a series of initiatives in the Global Batteries & Personal Care segment in Europe to
reduce operating costs and rationalize our manufacturing structure (the “European Initiatives”). In connection
with the European Initiatives, which are substantially complete, we implemented a series of initiatives within the
Global Batteries & Personal Care segment in Europe to reduce operating costs and rationalize our manufacturing
structure. These initiatives include the relocation of certain operations at our Ellwangen, Germany packaging
center to our Dischingen, Germany battery plant, transferring private label battery production at our Dischingen,
Germany battery plant to our manufacturing facility in China and restructuring Europe’s sales, marketing and
support functions. In connection with the European Initiatives, we recorded de minimis pretax restructuring and
related charges in Fiscal 2009 and approximately $(1) million in pretax restructuring and related charges,
representing the true-up of reserve balances, during Fiscal 2008.
We have implemented a series of initiatives within our Global Batteries & Personal Care business segment
in Latin America to reduce operating costs (the “Latin American Initiatives”). In connection with the Latin
American Initiatives, which are substantially complete, we implemented a series of initiatives within the Global
Batteries & Personal Care segment in Latin America to reduce operating costs. The initiatives include the
reduction of certain manufacturing operations in Brazil and the restructuring of management, sales, marketing
and support functions. We recorded de minimis pretax restructuring and related charges during both Fiscal 2009
and Fiscal 2008 in connection with the Latin American Initiatives.
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. See also Note 12, Segment Results, of
Notes to Consolidated Financial Statements included in this Annual Report on Form 10-K for additional
discussion on the realignment of our 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 $11 million and $20 million of pretax
restructuring and related charges during Fiscal 2009 and Fiscal 2008, respectively, in connection with the Global
Realignment Initiatives. Costs associated with these initiatives relate primarily to severance.
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”).
During Fiscal 2009, we implemented a series of initiatives within the Global Batteries & Personal Care
segment and the Global Pet Supplies segment to reduce operating costs as well as evaluate our opportunities to
improve our capital structure (the “Global Cost Reduction Initiatives”). These initiatives include headcount
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