Rayovac 2011 Annual Report Download - page 63

Corporate Expense. Our corporate expense in Fiscal 2011 increased to $54 million from $49 million in
Fiscal 2010. This increase is attributable to a $14 million increase in stock based compensation expense during
Fiscal 2011 compared to Fiscal 2010, partially offset by savings resulting from the relocation of the corporate
office back to Madison, Wisconsin, as well as synergies realized from the Merger. Corporate expense as a
percentage of consolidated net sales for Fiscal 2011 was 1.7% compared to 1.9% during Fiscal 2010.
Restructuring and Related Charges. See Note 14, Restructuring and Related Charges, of Notes to
Consolidated Financial Statements, included in this Annual Report on Form 10-K for additional information
regarding our restructuring and related charges.
The following table summarizes all restructuring and related charges we incurred in Fiscal 2011 and Fiscal
2010 (in millions):
2011 2010
Costs included in cost of goods sold:
Global Realignment Initiatives:
Termination benefits ....................................... $— $ 0.2
Other associated costs ...................................... — (0.1)
Ningbo Exit Plan:
Other associated costs ...................................... 0.3 2.1
Global Cost Reduction Initiatives:
Termination benefits ....................................... 1.6 2.6
Other associated costs ...................................... 5.9 2.3
Total included in cost of goods sold ............................... $ 7.8 $ 7.1
Costs included in operating expenses:
European Initiatives:
Termination benefits ....................................... $(0.3) $ (0.1)
Global Realignment Initiatives:
Termination benefits ....................................... 1.2 5.4
Other associated costs ...................................... 1.9 (1.9)
Global Cost Reduction Initiatives:
Termination benefits ....................................... 10.2 4.3
Other associated costs ...................................... 7.8 9.3
Total included in operating expenses .............................. $20.8 $17.0
Total restructuring and related charges ............................. $28.6 $24.1
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 included 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 during Fiscal 2011 and Fiscal 2010, representing the true-up of reserve balances.
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, consisting of research and development, manufacturing
management, global purchasing, quality operations and inbound supply chain, was transferred to the operating
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