Rayovac 2014 Annual Report Download - page 101

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SPECTRUM BRANDS HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
(Amounts in thousands, except per share figures)
Liabilities from restructuring and related charges are recorded for estimated costs of facility closures,
significant organizational adjustments and measures undertaken by management to exit certain activities. Costs
for such activities are estimated by management after evaluating detailed analyses of the costs to be incurred.
Such liabilities could include amounts for items such as severance costs and related benefits (including
settlements of pension plans), impairment of property and equipment and other current or long term assets, lease
termination payments and any other items directly related to the exit activities. While the actions are carried out
as expeditiously as possible, restructuring and related charges are estimates. Changes in estimates resulting in an
increase to or a reversal of a previously recorded liability may be required as management executes a
restructuring plan.
The Company reports restructuring and related charges associated with manufacturing and related initiatives
in cost of goods sold. Restructuring and related charges reflected in cost of goods sold include, but are not
limited to, termination and related costs associated with manufacturing employees, asset impairments relating to
manufacturing initiatives and other costs directly related to the restructuring initiatives implemented.
The Company reports restructuring and related charges associated with administrative functions in operating
expenses, such as initiatives impacting sales, marketing, distribution or other non-manufacturing related
functions. Restructuring and related charges reflected in operating expenses include, but are not limited to,
termination and related costs, any asset impairments relating to the administrative functions and other costs
directly related to the initiatives implemented.
(See also Note 14, “Restructuring and Related Charges,” for a more complete discussion of restructuring
initiatives and related costs).
(v) 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, accounting and other professional fees directly related to both
consummated acquisitions and acquisition targets, termination and related costs for transitional and certain other
employees, integration related professional fees and other post business combination expenses associated with
mergers and acquisitions.
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