Rayovac 2012 Annual Report Download - page 50

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Europe and Latin America. Substantially all of our rechargeable batteries, chargers and portable lighting
products, shaving and grooming products, small household appliances and personal care 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, electric shaving and grooming, electric personal care, 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” of Notes to Consolidated Financial Statements, included in this
Annual Report on Form 10-K for further information on our operating segments.
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
of certain raw materials and commodities; energy and fuel prices; and our general competitive position,
especially as impacted by our competitors’ advertising and promotional activities and pricing strategies.
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.
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
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