Rayovac 2012 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 are wholly-
owned subsidiaries of SB Holdings and Russell Hobbs is a wholly-owned subsidiary of Spectrum Brands. SB
Holdings’ common stock trades on the New York Stock Exchange (the “NYSE”) under the symbol “SPB.”
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.
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 140 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,
Dingo, Nature’s Miracle, Spectracide, Cutter, Hot Shot, Black & Decker, George Foreman, Russell Hobbs,
Farberware, Black Flag, FURminator and various other brands.
Our diversified global branded consumer products have positions in six major product categories: consumer
batteries; pet supplies; home and garden control products; electric shaving and grooming products; small
appliances; and electric personal care products. 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 and portable lighting, electric shaving and grooming, electric personal care
businesses 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”, in Notes to
Consolidated Financial Statements included in this Annual Report on Form 10-K.
Global and geographic strategic initiatives and financial objectives are determined at the corporate level.
Each business segment is responsible for implementing defined strategic initiatives and achieving certain
financial objectives and has a general manager responsible for sales and marketing initiatives and the financial
results for all product lines within that business segment.
Our operating performance is influenced by a number of factors including: general economic conditions;
foreign exchange fluctuations; trends in consumer markets; consumer confidence and preferences; our overall
product line mix, including pricing and gross margin, which vary by product line and geographic market; pricing
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