Rayovac 2015 Annual Report Download - page 22

The STP brand has been characterized by a commitment to technology, performance and motor sports
partnerships for over 60 years. We believe the STP brands’ fuel and oil additives, functional fluids and
automotive appearance products benefit from a rich heritage in the car enthusiast and racing scenes. We believe
that the strong brand equity of STP also provides for attractive licensing opportunities that augment our presence
in our core performance categories.
The results of AAG’s operations are included as a new segment, Global Auto Care, within the Company’s
consolidated operating results from the acquisition date of May 21, 2015.
Sales and Distribution
We sell our products through a variety of trade channels, including retailers, wholesalers and distributors,
hearing aid professionals, construction companies and OEMs. Our sales generally are made through the use of
individual purchase orders, consistent with industry practice. Retail sales of the consumer products we market
have been increasingly consolidated into a small number of regional and national mass merchandisers. This trend
towards consolidation is occurring on a worldwide basis. As a result of this consolidation, a significant
percentage of our sales are attributable to a very limited group of retailer customers, including Wal-Mart, The
Home Depot, Lowe’s, Carrefour, Target, PetSmart, Canadian Tire, PetCo and Gigante. Our sales to our largest
customer represented approximately 15% of our consolidated net sales for the fiscal year ended September 30,
2015. No other customer accounted for more than 10% of our consolidated net sales in the fiscal year ended
September 30, 2015.
Segment information as it relates to revenues, profits and total assets as well as information concerning our
revenues and long-lived assets by geographic location is set forth in Note 18, “Segment Information,” of Notes to
Consolidated Financial Statements included elsewhere in this Annual Report. Sales and distribution practices in
each of our reportable segments are as set forth below.
Global Batteries & Appliances
We manage our Global Batteries & Appliances sales force by geographic region and product group. Our
sales team is divided into four major geographic territories: North America, Latin America, Europe and Asia-
Pacific. Within each major geographic territory, we have additional subdivisions designed to meet our customers’
needs. We manage our sales force in North America by distribution channel. We maintain separate sales groups
to service (i) our retail sales and distribution channel, (ii) our hearing aid professionals channel and (iii) our
industrial distributors and OEM sales and distribution channel. In addition, we utilize a network of independent
brokers to service participants in selected distribution channels. We manage our sales force in Latin America by
distribution channel and geographic territory. We sell primarily to large retailers, wholesalers, distributors, food
and drug chains and retail outlets. In countries where we do not maintain a sales force, we sell to distributors who
market our products through all channels in the market. The sales force serving our customers in Europe and
Asia-Pacific is supplemented by an international network of distributors to promote the sale of our products. Our
sales operations throughout Europe and Asia-Pacific are organized by geographic territory and the following
sales channels: (i) food/retail, which includes mass merchandisers, discounters and drug and food stores;
(ii) specialty trade, which includes clubs, consumer electronics stores, department stores, photography stores and
wholesalers/distributors; and (iii) industrial, government, hearing aid professionals and OEMs.
Global Pet Supplies
Our Global Pet Supplies sales force is aligned by customer, geographic region and product group. We sell
pet supply products to mass merchandisers, grocery and drug chains, pet superstores, independent pet stores and
other retailers.
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