Rayovac 2011 Annual Report Download - page 11

PART I
ITEM 1. BUSINESS
General
Spectrum Brands Holdings, Inc., a Delaware corporation (“SB Holdings”), is a diversified 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’ common stock trades on the New York Stock Exchange (the “NYSE”) under the symbol “SPB.”
As further described below, on February 3, 2009, Spectrum Brands and its wholly owned 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.
Financial information included in our financial statements prepared after August 30, 2009 will not be
comparable to financial information from prior periods. See Item 1A. Risk Factors—“Risks Related To Our
Emergence From Bankruptcy” for more information.
Unless the context indicates otherwise, the terms the “Company,” “Spectrum,” “we,” “our” or “us” are used
to refer to SB Holdings and its subsidiaries subsequent to the Merger and Spectrum Brands prior to the Merger,
as well as before, on and after the Effective Date. The term “Old Spectrum” refers only to Spectrum Brands, our
Wisconsin predecessor, and its subsidiaries prior to the Effective Date.
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. With the addition of
Russell Hobbs we design, market and distribute a broad range of branded small household appliances and
personal care products. 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, small household appliances, personal care products and portable lighting products are
manufactured by third-party suppliers, primarily located in Asia.
We sell our 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 (“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, Black & Decker, George Foreman, Russell Hobbs, Farberware and various other brands.
Our diversified global branded consumer products have positions in seven major product categories:
consumer batteries; pet supplies; home and garden control products; electric shaving and grooming products;
small appliances; electric personal care products; and portable lighting. Our chief operating decision-maker
manages the businesses in three vertically integrated, product-focused reporting segments: (i) Global Batteries &
Appliances, which consists of our 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 of our worldwide pet supplies business
(“Global Pet Supplies”); and (iii) Home and Garden Business, which consists of our home and garden and insect
control business (the “Home and Garden Business”). Management reviews our performance based on these
segments. For information pertaining to our business segments, see Note 11, “Segment Information”.
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