Rayovac 2015 Annual Report Download - page 153

SPECTRUM BRANDS HOLDINGS, INC.
SB/RH HOLDINGS, LLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
See Note 11, “Derivatives” for further detail on the Company’s derivative hedging activity. See Note 12,
“Employee Benefit Plans” for further detail over the Company’s defined benefit plans.
NOTE 17—COMMITMENTS AND CONTINGENCIES
The Company is a defendant in various litigation matters generally arising out of the ordinary course of business.
The Company does not believe that any of the matters or proceedings presently pending will have a material
adverse effect on its results of operations, financial condition, liquidity or cash flows.
The Company has provided for the estimated costs of $4.4 million and $4.6 million, as of September 30,
2015 and 2014, respectively, associated with environmental remediation activities at some of its current and
former manufacturing sites. The Company believes that any additional liability in excess of the amounts provided
that may result from resolution of these matters, will not have a material adverse effect on the consolidated
financial condition, results of operations or cash flows of the Company.
NOTE 18—SEGMENT INFORMATION
The Company identifies its segments using the “management approach,” which designates the internal
organization that is used by management for making operating decisions and assessing performance as the source
of the Company’s reportable segments. The Company manufactures, markets and/or distributes multiple product
lines through various distribution networks, and in multiple geographic regions. The Company manages its
business in five vertically integrated, product-focused reporting segments: (i) Global Batteries & Appliances,
which consists of the Company’s worldwide battery, electric personal care and small appliances; (ii) Hardware &
Home Improvement, which was established through the HHI acquisition on December 21, 2012 and consists of
the Company’s worldwide hardware, home improvement and plumbing business; (iii) Global Pet Supplies, which
consists of the Company’s worldwide pet supplies business; (iv) Home and Garden, which consists of the
Company’s home and garden and insect control business and (v) Global Auto Care, which was established
through the AAG acquisition on May 21, 2015 and consists of the Company’s automotive appearance and
performance products. Global strategic initiatives and financial objectives for each reportable segment are
determined at the corporate level. Each segment is responsible for implementing defined strategic initiatives and
achieving certain financial objectives, and has a general manager responsible for the sales and marketing
initiatives and financial results for product lines within the segment.
Net sales relating to the segments for the years ended September 30, 2015, 2014 and 2013 are as follows:
Spectrum Brands Holdings, Inc. SB/RH Holdings, LLC
Net sales to external customers 2015 2014 2013 2015 2014 2013
(in millions)
Consumer batteries ................. $ 829.5 $ 957.8 $ 931.6 $ 829.5 $ 957.8 $ 931.6
Small appliances ................... 734.6 730.8 740.3 734.6 730.8 740.3
Personal care ...................... 528.1 542.1 531.7 528.1 542.1 531.7
Global Batteries & Appliances ............ 2,092.2 2,230.7 2,203.6 2,092.2 2,230.7 2,203.6
Hardware & Home Improvement .......... 1,205.5 1,166.0 869.6 1,205.5 1,166.0 869.6
Global Pet Supplies ..................... 758.2 600.5 621.9 758.2 600.5 621.9
Home and Garden ...................... 474.0 431.9 390.5 474.0 431.9 390.5
Global Auto Care ...................... 160.5 — — 160.5 — —
Net sales ............................. $4,690.4 $4,429.1 $4,085.6 $4,690.4 $4,429.1 $4,085.6
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