Rayovac 2015 Annual Report Download - page 60

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Introduction
The following is management’s discussion of the financial results, liquidity and other key items related to our
performance and should be read in conjunction with Selected Financial Data included in Item 6 and our
Consolidated Financial Statements and related notes included in Item 8 of this Annual Report on Form 10-K. Unless
the context indicates otherwise, the terms the “Company,” “Spectrum,” “we,” “our” or “us” are used to refer to
Spectrum Brands Holdings, Inc. and its subsidiaries and SB/RH holdings, LLC and its subsidiaries, collectively.
Business Overview
Refer to Item 1 “Business” included elsewhere within this Annual Report for an overview of our business.
Our operating performance is influenced by a number of factors including: general economic conditions;
foreign exchange fluctuations; trends in consumer markets; consumer confidence and preferences; our overall
product line mix, including pricing and gross margin, which vary by product line and geographic region; pricing
of certain raw materials and commodities; energy and fuel prices; and our general competitive position,
especially as impacted by our competitors’ advertising and promotional activities and pricing strategies.
Fiscal Year
The Company’s fiscal year ends on September 30. Throughout the year, the Company reports its results
using a fiscal calendar whereby each three month quarterly reporting period is approximately thirteen weeks in
length and ends on a Sunday. The exceptions are the first quarter, which begins on October 1, and the fourth
quarter, which ends on September 30. For the year ended September 30, 2015, the fiscal quarters were comprised
of the three months ended December 28, 2014, and March 29, June 28 and September 30, 2015.
Acquisitions
The application of acquisition accounting as a result of business combinations can significantly affect
certain assets, liabilities and expenses. Over the last three fiscal years, the Company has completed a number of
acquisitions as outlined below.
Armored AutoGroup—On May 21, 2015, the Company completed the acquisition of AAG, a consumer
products company consisting primarily of Armor All branded appearance products, STP branded performance
chemicals, and A/C PRO branded do-it-yourself automotive air conditioner recharge products. The results of
AAG’s operations since May 21, 2015 are included in the Company’s Consolidated Statements of Operations for
the year ended September 30, 2015. AAG is reported as a separate segment, Global Auto Care.
Salix—On January 16, 2015, the Company completed the acquisition of Salix, a vertically integrated
producer and distributor of premium, natural rawhide dog chews, treats and snacks. The results of Salix’s
operations since January 16, 2015 are included in the Company’s Consolidated Statements of Operations for the
year ended September 30, 2015, and as part of the Global Pet Supplies segment.
European IAMS and Eukanuba—On December 31, 2014, the Company completed the acquisition of
Procter & Gamble’s European IAMS and Eukanuba pet food business (“European IAMS and Eukanuba”),
including its leading premium brands for dogs and cats. The results of the European IAMS and Eukanuba’s
operations since December 31, 2014 are included in the Company’s Consolidated Statements of Operations for
the year ended September 30, 2015, and as part of the Global Pet Supplies segment.
Tell Manufacturing—On October 1, 2014, the Company completed the acquisition of Tell Manufacturing,
Inc. (“Tell”), a leading manufacturer and distributor of commercial doors, locks and hardware. The results of
Tell’s operations since October 1, 2014 are included in the Company’s Consolidated Statements of Operations
for the year ended September 30, 2015, and as part of the Hardware and Home Improvement segment.
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