Rayovac 2011 Annual Report Download - page 52

which we determined would be an appropriate fresh-start reporting date given that the Effective Date was
August 28, 2009; the transactions that occurred during the two-day period from August 29, 2009 through
August 30, 2009 were not material individually or in the aggregate; and August 30, 2009 coincided with our
normal financial period close for August 2009. Upon adoption of fresh-start reporting, the recorded amounts of
assets and liabilities were adjusted to reflect their estimated fair values. Accordingly, the financial information of
Old Spectrum prior to the adoption of fresh-start reporting (i.e., for periods ended prior to August 30, 2009) are
not comparable to the financial information for periods subsequent to August 30, 2009.
Since the reorganization value of the assets of Old Spectrum immediately before the date of confirmation of
the Plan was less than the total of all post-petition liabilities and allowed claims and the holders of Old
Spectrum’s voting shares immediately before confirmation of the Plan received less than 50 percent of the voting
shares of the emerging entity, the Company adopted fresh-start reporting as of the close of business on
August 30, 2009 in accordance with ASC 852. The Consolidated Statement of Financial Position as of
August 30, 2009 was adjusted to give effect to allocations to the carrying value of assets or amounts and
classifications of liabilities that were necessary when adopting fresh-start reporting.
Cost Reduction Initiatives
We continually seek to improve our operational efficiency, match our manufacturing capacity and product
costs to market demand and better utilize our manufacturing resources. We have undertaken various initiatives to
reduce manufacturing and operating costs.
Fiscal 2009. In connection with our announcement of a plan to reduce headcount within each of our
segments and to exit certain facilities in the U.S. related to the Global Pet Supplies segment, we implemented a
number of cost reduction initiatives (the “Global Cost Reduction Initiatives”). These initiatives also included
consultation, legal and accounting fees related to the evaluation of our capital structure.
Fiscal 2008. In connection with our decision to exit our zinc carbon and alkaline battery manufacturing and
distribution facility in Ninghai, China, we undertook cost reduction initiatives (the “Ningbo Exit Plan”). These
initiatives include fixed cost savings by integrating production equipment into our remaining production facilities
and headcount reductions.
Fiscal 2007. In connection with our announcement that we would manage our business in three vertically
integrated, product-focused reporting segments we undertook a number of cost reduction initiatives, primarily
headcount reductions, at the corporate and operating segment levels (the “Global Realignment Initiatives”),
including a headcount reduction of approximately 200 employees.
Meeting Consumer Needs through Technology and Development
We continue to focus our efforts on meeting consumer needs for our products through new product
development and technology innovations. Research and development efforts associated with our electric shaving
and grooming products allow us to deliver to the market unique cutting systems. Research and development
efforts associated with our electric personal care products allow us to deliver to our customers products that save
them time, provide salon alternatives and enhance their in-home personal care options. We are continuously
pursuing new innovations for our shaving, grooming and hair care products including foil and rotary shaver
improvements, trimmer enhancements and technologies that deliver skin and hair care benefits.
During Fiscal 2011, we introduced the new Spectracide Easy Action Pump delivery system, which makes
application over larger areas quick and easy by providing consumers up to five minutes of continuous spray. We
also launched the Cutter Natural and Repel Natural insect repellents that offer highly effective, DEET-free
protection and are priced like other repellents. Additionally, under the Remington brand we introduced the Mb
Touch, a precision beard trimmer with LED touch screen controls, expanded into a pearl line of hair care
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