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SPECTRUM BRANDS HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
(Amounts in thousands, except per share figures)
The following table summarizes the remaining accrual balance associated with the Global Cost Reduction
Initiatives and the activity during Fiscal 2014:
Termination
Benefits
Other
Costs Total
Accrual balance at September 30, 2013 ................................. $4,927 $ 424 $ 5,351
Provisions ........................................................ 232 2 234
Cash expenditures .................................................. (3,541) (741) (4,282)
Non-cash items .................................................... (289) 475 186
Accrual balance at September 30, 2014 ................................. $1,329 $ 160 $ 1,489
Expensed as incurred(A) ............................................. $ 17 $1,067 $ 1,084
(A) Consists of amounts not impacting the accrual for restructuring and related charges.
The following table summarizes the expenses incurred during Fiscal 2014, the cumulative amount incurred
to date and the total future expected costs to be incurred associated with the Global Cost Reduction Initiatives by
operating segment:
Global
Batteries &
Appliances
Global Pet
Supplies
Home and
Garden Corporate Total
Restructuring and related charges during fiscal 2014 ....... $ 99 $ 1,219 $ — $ — $ 1,318
Restructuring and related charges since initiative
inception ....................................... $25,512 $49,368 $18,219 $7,591 $100,690
Total future restructuring and related charges expected ..... $ 767 $ 3,618 $ — $ — $ 4,385
The Company recorded $3,759 and $6,228 of restructuring and related charges during Fiscal 2014 and
Fiscal 2013 and no restructuring and related charges during Fiscal 2012, related to initiatives implemented by the
HHI Business prior to the Company’s acquisition on December 17, 2012.
In connection with other restructuring efforts, the Company recorded $(66), $115 and $901 during Fiscal
2014, Fiscal 2013 and Fiscal 2012, respectively.
(15) ACQUISITIONS
In accordance with ASC Topic 805, “Business Combinations” (“ASC 805”), the Company accounts for
acquisitions by applying the acquisition method of accounting. The acquisition method of accounting requires,
among other things, that the assets acquired and liabilities assumed in a business combination be measured at
their fair values as of the closing date of the acquisition.
HHI Business
On December 17, 2012, the Company completed the cash acquisition of the HHI Business from Stanley
Black & Decker. A portion of the HHI Business, consisting of the purchase of certain assets of TLM Taiwan,
closed on April 8, 2013. The HHI Business is a major manufacturer and supplier of residential locksets,
residential builders’ hardware and faucets with a portfolio of recognized brand names, including Kwikset,
Weiser, Baldwin, National Hardware, Stanley and Pfister, as well as patented technologies such as the SmartKey,
a re-keyable lockset technology, and Smart Code Home Connect. Customers of the HHI Business include
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