Rayovac 2013 Annual Report Download - page 51

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Our diversified global branded consumer products have positions in seven major product categories:
consumer batteries; small appliances; pet supplies; electric shaving and grooming; electric personal care; home
and garden controls; and hardware and home improvement, which consists of the recently acquired HHI
Business. Our chief operating decision-maker manages the businesses in four 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”); (iii) Home and Garden Business, which consists of our home and
garden and insect control business (the “Home and Garden Business”); and (iv) Hardware & Home
Improvement, which consists of the recently acquired HHI Business (“Hardware & Home Improvement”).
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 2013. To reduce operating costs the Company implemented a series of initiatives throughout the
Company which consist of headcount reductions in the Global Batteries & Appliances segment and Corporate
(the “Global Expense Rationalization Initiatives”).
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
pursuing new innovations for our shaving, grooming and hair care products including foil and rotary shaver
improvements, trimmer enhancements and technologies that deliver skin and hair care benefits.
During Fiscal 2013, we introduced the Kevo smart lock under the Kwikset brand. This bluetooth enabled
technology gives owners the ability to lock and unlock their doors with their smartphone, send electronic keys to
others and receive notifications whenever a user enters or exits their doors. We expect to begin sales of Kevo
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