Rayovac 2011 Annual Report Download - page 148

Download and view the complete annual report

Please find page 148 of the 2011 Rayovac annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 170

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170

SPECTRUM BRANDS HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
(In thousands, except per share amounts)
2008 Restructuring Initiatives
The Company implemented an initiative within the Global Batteries & Appliances segment in China to
reduce operating costs and rationalize the Company’s manufacturing structure. These initiatives, which are
complete, include the plan to exit the Company’s Ningbo battery manufacturing facility in China (the “Ningbo
Exit Plan”). The Company has recorded pretax restructuring and related charges of $29,651 since the inception of
the Ningbo Exit Plan.
The Successor Company recorded $273, $2,162 and $165 of pretax restructuring and related charges during
Fiscal 2011, Fiscal 2010 and the period from August 31, 2009 through September 30, 2009, respectively. The
Predecessor Company recorded $10,652 of pretax restructuring and related charges during the period from
October 1, 2008 through August 30, 2009, in connection with the Ningbo Exit Plan.
The following table summarizes the remaining accrual balance associated with the Ningbo Exit Plan and
activity that occurred during Fiscal 2011:
Ningbo Exit Plan Summary
Other Costs
Accrual balance at September 30, 2010 ................................ $491
Provisions ....................................................... 24
Cash expenditures ................................................. (143)
Non-cash items ................................................... (372)
Accrual balance at September 30, 2011 ................................ $—
Expensed as incurred(A) ............................................ $249
(A) Consists of amounts not impacting the accrual for restructuring and related charges.
2007 Restructuring Initiatives
In Fiscal 2007, the Company began managing its business in three vertically integrated, product-focused
reporting segments: Global Batteries & Personal Care (which, effective October 1, 2010, includes the appliance
portion of Russell Hobbs, collectively, Global Batteries & Appliances), Global Pet Supplies and the Home and
Garden Business. As part of this realignment, the Company undertook a number of cost reduction initiatives,
primarily headcount reductions, at the corporate and operating segment levels (the “Global Realignment
Initiatives”). Costs associated with these initiatives since inception, which are expected to be incurred through
June 30, 2013, relate primarily to severance and are projected at approximately $92,500, the majority of which
are cash costs.
In connection with the Global Realignment Initiatives, the Successor Company recorded $3,138, $3,605 and
$138 of restructuring and related charges during Fiscal 2011, Fiscal 2010 and the period from August 31, 2009
through September 30, 2009, respectively. The Predecessor Company recorded $11,635 of pretax restructuring
and related charges during the period from October 1, 2008 through August 30, 2009, related to the Global
Realignment Initiatives.
138