Rayovac 2011 Annual Report Download - page 102

SPECTRUM BRANDS HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except per share amounts)
(1) Description of Business
Spectrum Brands Holdings, Inc., a Delaware corporation (“SB Holdings” or the “Company”), is a global branded
consumer products company and was created in connection with the combination of Spectrum Brands, Inc.
(“Spectrum Brands”), a global branded consumer products company, and Russell Hobbs, Inc. (“Russell Hobbs”),
a global branded small appliance company, to form a new combined company (the “Merger”). The Merger was
consummated on June 16, 2010. As a result of the Merger, both Spectrum Brands and Russell Hobbs became
wholly-owned subsidiaries of SB Holdings. Russell Hobbs was subsequently merged into Spectrum Brands. SB
Holdings trades on the New York Stock Exchange under the symbol “SPB.”
On February 3, 2009, Spectrum Brands, Inc. and 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 and in
accordance with Accounting Standard Codification (“ASC”) Topic 852: “Reorganizations,” the Company
determined that all conditions required for the adoption of fresh-start reporting were met upon emergence from
Chapter 11 of the Bankruptcy Code on the Effective Date. However in light of the proximity of that date to the
Company’s August accounting period close, which was August 30, 2009, the Company elected to adopt a
convenience date of August 30, 2009 for recording fresh-start reporting.
Unless the context indicates otherwise, the term “Company” is used to refer to both Spectrum Brands and its
subsidiaries prior to the Merger and SB Holdings and its subsidiaries subsequent to the Merger. The term
“Predecessor Company” refers only to the Company prior to the Effective Date and the term “Successor
Company” refers to Spectrum Brands or the Company subsequent to the Effective Date.
The Company’s operations include the worldwide manufacturing and marketing of alkaline, zinc carbon and
hearing aid batteries, as well as aquariums and aquatic health supplies and the designing and marketing of
rechargeable batteries, battery-powered lighting products, electric shavers and accessories, grooming products
and hair care appliances. The Company’s operations also include the manufacturing and marketing of specialty
pet supplies. The Company also manufactures and markets herbicides, insecticides and insect repellents in North
America. The Company also designs, markets and distributes a broad range of branded small appliances and
personal care products. The Company’s operations utilize manufacturing and product development facilities
located in the U.S., Europe, Latin America and Asia.
The Company sells its products in approximately 130 countries through a variety of trade channels,
including retailers, wholesalers and distributors, hearing aid professionals, industrial distributors and original
equipment manufacturers and enjoys name recognition in its 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, Black & Decker, George Foreman, Russell Hobbs, Farberware and various other brands.
The Company’s global branded consumer products have positions in seven major product categories:
consumer batteries; small appliances; pet supplies; electric shaving and grooming; electric personal care; portable
lighting; and home and garden controls. Effective October 1, 2010, the Company’s chief operating decision-
maker manages the businesses of the Company in three vertically integrated, product-focused reporting
segments: (i) Global Batteries & Appliances, which consists of the Company’s worldwide battery, electric
shaving and grooming, electric personal care, portable lighting business and small appliances primarily in the
kitchen and home product categories (“Global Batteries & Appliances”); (ii) Global Pet Supplies, which consists
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