Rayovac 2012 Annual Report Download - page 60

The following table summarizes all restructuring and related charges we incurred in Fiscal 2012 and Fiscal
2011 (in millions):
2012 2011
Costs included in cost of goods sold:
Global Cost Reduction Initiatives:
Termination benefits ....................................... $ 2.9 $ 1.6
Other associated costs ...................................... 6.9 5.9
Other Cost Reduction Initiatives:
Other associated costs ...................................... — 0.3
Total included in cost of goods sold ............................... $ 9.8 $ 7.8
Costs included in operating expenses:
Global Cost Reduction Initiatives:
Termination benefits ....................................... 3.1 10.2
Other associated costs ...................................... 5.8 7.8
Other Cost Reduction Initiatives:
Termination benefits ....................................... — 0.9
Other associated costs ...................................... 0.9 1.9
Total included in operating expenses .............................. $ 9.8 $20.8
Total restructuring and related charges ............................. $19.6 $28.6
In connection with the Global Cost Reduction Initiatives, we recorded $19 million and $25 million of pretax
restructuring and related charges during Fiscal 2012 and Fiscal 2011, respectively. Costs associated with these
initiatives, which are expected to be incurred through January 31, 2015, are projected at approximately $89
million, approximately $83 million of which had been incurred through September 30, 2012.
Acquisition and integration related charges. Acquisition and integration related charges reflected in
Operating expenses include, but are not limited to, transaction costs such as banking, legal and accounting
professional fees directly related to both consummated acquisitions and acquisition targets, employee termination
charges, integration related professional fees and other post business combination related expenses.
We incurred $31 million of Acquisition and integration related charges during Fiscal 2012 primarily in
connection with the Merger and the acquisitions of Black Flag and FURminator, and the expected acquisition of
the HHI Business, which consisted of: (i) $16 million of integration costs; (ii) $6 million of employee
termination charges; and (iii) $9 million of legal and professional fees. We incurred $37 million of Acquisition
and integration related charges during Fiscal 2011, which consisted of the following: (i) $23 million of
integration costs; (ii) $8 million of employee termination charges; and (iii) $6 million of legal and professional
fees.
Goodwill and Intangibles Impairment. Accounting standards require companies to test goodwill and
indefinite-lived intangible assets for impairment annually, or more often if an event or circumstance indicates
that an impairment loss may have been incurred. In Fiscal 2012 and Fiscal 2011, we tested our goodwill and
indefinite-lived intangible assets as required. As a result of this testing, no impairment was identified in Fiscal
2012 while we recorded a non-cash pretax impairment charge of $32 million in Fiscal 2011. The $32 million
non-cash pretax impairment charge incurred in Fiscal 2011 reflects trade name intangible asset impairments of
the following: $23 million related to the Global Batteries and Appliances segment; $8 million related to Global
Pet Supplies; and $1 million related to the Home and Garden Business. See Note 2(i), “Significant Accounting
Policies and Practices—Intangible Assets”, of Notes to Consolidated Financial Statements included in this
Annual Report on Form 10-K for further details on goodwill and intangibles impairment charges.
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