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SPECTRUM BRANDS HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, except per share figures)
(1) DESCRIPTION OF BUSINESS
Spectrum Brands Holdings, Inc., a Delaware corporation (“SB Holdings” or the “Company”), is a diversified
global branded consumer products company. Spectrum Brands, Inc. (“Spectrum Brands”), is a wholly owned
subsidiary of SB Holdings. SB Holdings’ common stock trades on the New York Stock Exchange (the “NYSE”)
under the symbol “SPB.”
The Company’s operations include the worldwide manufacturing and marketing of alkaline, zinc carbon and
hearing aid batteries, as well as aquariums and aquatic health supplies and the designing and marketing of
rechargeable batteries, battery-powered lighting products, electric shavers and accessories, grooming products
and hair care appliances. The Company’s operations also include the manufacturing and marketing of specialty
pet supplies. The Company also manufactures and markets herbicides, insecticides and insect repellents in North
America. The Company also designs, markets and distributes a broad range of branded small appliances and
personal care products. The Company’s operations utilize manufacturing and product development facilities
located in the United States (“U.S.”), Europe, Latin America and Asia.
On December 17, 2012, the Company acquired the residential hardware and home improvement business
(the “HHI Business”) from Stanley Black & Decker, Inc. (“Stanley Black & Decker”), which includes (i) the
equity interests of certain subsidiaries of Stanley Black & Decker engaged in the business and (ii) certain assets
of Stanley Black & Decker used or held for use in connection with the business (the “Hardware Acquisition”).
The HHI Business has a broad portfolio of recognized brand names, including Kwikset, Weiser, Baldwin,
National Hardware, Stanley, FANAL and Pfister, as well as patented technologies such as Smartkey, a rekeyable
lockset technology, and Smart Code Home Connect. On April 8, 2013, the Company completed the Hardware
Acquisition with the closing of the purchase of certain assets of Tong Lung Metal Industry Co. Ltd., a Taiwan
Corporation (“TLM Taiwan”), which is involved in the production of residential locksets. For information
pertaining to the Hardware Acquisition, see Note 15, “Acquisitions.”
The Company sells its 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 and enjoys name recognition in its 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, the previously mentioned HHI Business brands and various other brands.
The Company’s 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.
The Company manages the businesses in four vertically integrated, product-focused reporting segments:
(i) Global Batteries & Appliances, which consists of the Company’s 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 the Company’s worldwide pet
supplies business (“Global Pet Supplies”); (iii) Home and Garden Business, which consists of the Company’s
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 the performance of the Company based on these segments, which also reflect the manner in
which the Company’s management monitors performance and allocates resources. For information pertaining to
our business segments, see Note 11, “Segment Information.”
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