Rayovac 2012 Annual Report Download - page 70

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
segments. In connection with these changes we undertook a number of cost reduction initiatives, primarily
headcount reductions at the corporate and operating segment levels (the “Global Realignment Initiatives”). We
recorded approximately $3 million and $4 million of pretax restructuring and related charges during Fiscal 2011
and Fiscal 2010, respectively, in connection with the Global Realignment Initiatives. Costs associated with these
initiatives, which are expected to be incurred through June 30, 2013, relate primarily to severance and are
projected at approximately $92 million.
During Fiscal 2008, we implemented an initiative within the Global Batteries & Personal Care segment to
reduce operating costs and rationalize our manufacturing structure. These initiatives, which are substantially
complete, include the exit of our battery manufacturing facility in Ningbo Baowang China (“Ningbo”) (the
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