x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 22-2423556 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |
601 Rayovac Drive Madison, Wisconsin | 53711 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ¬ | Accelerated filer | ¬ | ||
Non-accelerated filer | x | Smaller reporting company | ¬ |
Page | ||
Part I—Financial Information | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 6. | ||
June 30, 2013 | September 30, 2012 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 98,904 | $ | 157,872 | |||
Receivables: | |||||||
Trade accounts receivable, net of allowances of $32,591 and $21,870, respectively | 479,307 | 335,301 | |||||
Other | 74,943 | 40,067 | |||||
Inventories | 707,340 | 452,633 | |||||
Deferred income taxes | 21,252 | 28,143 | |||||
Prepaid expenses and other | 69,800 | 49,273 | |||||
Total current assets | 1,451,546 | 1,063,289 | |||||
Property, plant and equipment, net of accumulated depreciation of $180,596 and $139,994, respectively | 355,250 | 214,017 | |||||
Deferred charges and other | 22,389 | 27,711 | |||||
Goodwill | 1,470,180 | 694,245 | |||||
Intangible assets, net | 2,169,404 | 1,714,929 | |||||
Debt issuance costs | 71,903 | 39,320 | |||||
Total assets | $ | 5,540,672 | $ | 3,753,511 | |||
Liabilities and Shareholders’ Equity | |||||||
Current liabilities: | |||||||
Current maturities of long-term debt | $ | 40,783 | $ | 16,414 | |||
Accounts payable | 427,539 | 325,023 | |||||
Accrued liabilities: | |||||||
Wages and benefits | 63,623 | 82,119 | |||||
Income taxes payable | 29,586 | 30,272 | |||||
Accrued interest | 26,906 | 30,473 | |||||
Other | 155,410 | 124,597 | |||||
Total current liabilities | 743,847 | 608,898 | |||||
Long-term debt, net of current maturities | 3,185,271 | 1,652,886 | |||||
Employee benefit obligations, net of current portion | 109,340 | 89,994 | |||||
Deferred income taxes | 503,454 | 377,465 | |||||
Other | 24,845 | 31,578 | |||||
Total liabilities | 4,566,757 | 2,760,821 | |||||
Commitments and contingencies | |||||||
Shareholders’ equity: | |||||||
Other capital | 1,385,806 | 1,359,946 | |||||
Accumulated deficit | (406,513 | ) | (333,821 | ) | |||
Accumulated other comprehensive loss | (56,310 | ) | (33,435 | ) | |||
Total shareholders' equity | 922,983 | 992,690 | |||||
Non-controlling interest | 50,932 | — | |||||
Total equity | 973,915 | 992,690 | |||||
Total liabilities and equity | $ | 5,540,672 | $ | 3,753,511 |
THREE MONTHS ENDED | NINE MONTHS ENDED | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net sales | $ | 1,089,825 | $ | 824,803 | $ | 2,947,849 | $ | 2,419,859 | |||||||
Cost of goods sold | 706,053 | 531,069 | 1,949,332 | 1,575,803 | |||||||||||
Restructuring and related charges | 1,013 | 2,038 | 4,698 | 8,303 | |||||||||||
Gross profit | 382,759 | 291,696 | 993,819 | 835,753 | |||||||||||
Selling | 165,178 | 129,851 | 464,961 | 391,522 | |||||||||||
General and administrative | 70,057 | 50,726 | 196,077 | 157,493 | |||||||||||
Research and development | 11,486 | 8,597 | 31,517 | 23,790 | |||||||||||
Acquisition and integration related charges | 7,747 | 5,274 | 40,558 | 20,625 | |||||||||||
Restructuring and related charges | 12,232 | 1,858 | 23,038 | 7,587 | |||||||||||
Total operating expenses | 266,700 | 196,306 | 756,151 | 601,017 | |||||||||||
Operating income | 116,059 | 95,390 | 237,668 | 234,736 | |||||||||||
Interest expense | 61,516 | 39,686 | 185,652 | 150,169 | |||||||||||
Other expense, net | 2,613 | 2,224 | 7,941 | 2,225 | |||||||||||
Income from continuing operations before income taxes | 51,930 | 53,480 | 44,075 | 82,342 | |||||||||||
Income tax expense (benefit) | 15,169 | (5,371 | ) | 54,928 | 38,772 | ||||||||||
Net income (loss) | 36,761 | 58,851 | (10,853 | ) | 43,570 | ||||||||||
Less: Net income attributable to non-controlling interest | 263 | — | 8 | — | |||||||||||
Net income (loss) attributable to controlling interest | $ | 36,498 | $ | 58,851 | $ | (10,861 | ) | $ | 43,570 |
THREE MONTHS ENDED | NINE MONTHS ENDED | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income (loss) | $ | 36,761 | $ | 58,851 | $ | (10,853 | ) | $ | 43,570 | ||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||
Foreign currency translation | (7,830 | ) | (34,148 | ) | (25,385 | ) | (30,538 | ) | |||||||
Unrealized gain on derivative instruments | 1,780 | 1,475 | 2,858 | 2,370 | |||||||||||
Defined benefit pension (loss) gain | (52 | ) | 422 | (348 | ) | 924 | |||||||||
Other comprehensive loss, net of tax | (6,102 | ) | (32,251 | ) | (22,875 | ) | (27,244 | ) | |||||||
Comprehensive income (loss) | 30,659 | 26,600 | (33,728 | ) | 16,326 | ||||||||||
Less: Comprehensive income attributable to non-controlling interest | 263 | — | 8 | — | |||||||||||
Comprehensive income (loss) attributable to controlling interest | $ | 30,396 | $ | 26,600 | $ | (33,736 | ) | $ | 16,326 |
NINE MONTHS ENDED | |||||||
2013 | 2012 | ||||||
Cash flows from operating activities: | |||||||
Net (loss) income | $ | (10,853 | ) | $ | 43,570 | ||
Adjustments to reconcile net (loss) income to net cash used by operating activities, net of effects of acquisitions: | |||||||
Depreciation | 42,618 | 28,708 | |||||
Amortization of intangibles | 57,502 | 46,550 | |||||
Amortization of unearned restricted stock compensation | 31,830 | 15,436 | |||||
Amortization of debt issuance costs | 7,210 | 5,273 | |||||
Non-cash increase to cost of goods sold from sale of HHI Business acquisition inventory | 31,000 | — | |||||
Write off unamortized discount / (premium) on retired debt | 885 | (466 | ) | ||||
Write off of debt issuance costs | 4,600 | 2,945 | |||||
Other non-cash adjustments | 19,518 | 3,021 | |||||
Net changes in assets and liabilities | (260,148 | ) | (212,965 | ) | |||
Net cash used by operating activities | (75,838 | ) | (67,928 | ) | |||
Cash flows from investing activities: | |||||||
Purchases of property, plant and equipment | (45,236 | ) | (33,117 | ) | |||
Acquisition of Shaser, net of cash acquired | (42,510 | ) | — | ||||
Acquisition of the HHI Business, net of cash acquired | (1,351,008 | ) | — | ||||
Acquisition of Black Flag | — | (43,750 | ) | ||||
Acquisition of FURminator, net of cash acquired | — | (139,390 | ) | ||||
Other investing activities | (1,141 | ) | (1,627 | ) | |||
Net cash used by investing activities | (1,439,895 | ) | (217,884 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from issuance of Term Loan, net of discount | 792,000 | — | |||||
Proceeds from issuance of 6.375% Notes | 520,000 | — | |||||
Proceeds from issuance of 6.625% Notes | 570,000 | — | |||||
Proceeds from issuance of 6.75% Notes | — | 300,000 | |||||
Payment of 12% Notes, including tender and call premium | — | (270,431 | ) | ||||
Proceeds from issuance of 9.5% Notes, including premium | — | 217,000 | |||||
Payment of senior credit facilities, excluding ABL revolving credit facility | (406,904 | ) | (4,091 | ) | |||
Debt issuance costs | (44,469 | ) | (11,163 | ) | |||
Other debt financing, net | 17,080 | 6,192 | |||||
Reduction of other debt | (1,970 | ) | (27,992 | ) | |||
ABL revolving credit facility, net | 69,500 | 2,500 | |||||
Capital contribution from parent | 28,562 | — | |||||
Cash dividends paid to parent | (61,842 | ) | — | ||||
Share based award tax withholding payments | (20,141 | ) | (3,936 | ) | |||
Other financing activities | — | (953 | ) | ||||
Net cash provided by financing activities | 1,461,816 | 207,126 | |||||
Effect of exchange rate changes on cash and cash equivalents due to Venezuela devaluation | (1,870 | ) | — | ||||
Effect of exchange rate changes on cash and cash equivalents | (3,181 | ) | (1,429 | ) | |||
Net decrease in cash and cash equivalents | (58,968 | ) | (80,115 | ) | |||
Cash and cash equivalents, beginning of period | 157,872 | 142,414 | |||||
Cash and cash equivalents, end of period | $ | 98,904 | $ | 62,299 |
1 | DESCRIPTION OF BUSINESS |
2 | SIGNIFICANT ACCOUNTING POLICIES |
Nine Months Ended | |||||
2013 | 2012 | ||||
Net cash used by operating activities: Net changes in assets and liabilities | 17,946 | 3,936 | |||
Net cash provided by financing activities: Share based award tax withholding payments | (17,946 | ) | (3,936 | ) |
Restricted Stock Awards | Shares | Weighted Average Grant Date Fair Value | Fair Value at Grant Date | ||||||||
Non-vested restricted stock awards at September 30, 2012 | 13 | $ | 28.00 | $ | 364 | ||||||
Vested | (13 | ) | 28.00 | (364 | ) | ||||||
Non-vested restricted stock awards at June 30, 2013 | — | $ | — | $ | — |
Restricted Stock Units | Shares | Weighted Average Grant Date Fair Value | Fair Value at Grant Date | ||||||||
Non-vested restricted stock units at September 30, 2012 | 1,931 | $ | 28.45 | $ | 54,931 | ||||||
Granted | 644 | 45.53 | 29,319 | ||||||||
Forfeited | (290 | ) | 29.78 | (8,637 | ) | ||||||
Vested | (1,116 | ) | 28.21 | (31,485 | ) | ||||||
Non-vested restricted stock units at June 30, 2013 | 1,169 | $ | 37.75 | $ | 44,128 |
Three Months Ended | Nine Months Ended | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Russell Hobbs | |||||||||||||||
Integration costs | $ | 695 | $ | 1,573 | $ | 2,630 | $ | 6,766 | |||||||
Employee termination charges | (35 | ) | 840 | 224 | 3,356 | ||||||||||
Legal and professional fees | (78 | ) | 587 | 12 | 1,508 | ||||||||||
Russell Hobbs Acquisition and integration related charges | $ | 582 | $ | 3,000 | $ | 2,866 | $ | 11,630 | |||||||
HHI Business | |||||||||||||||
Legal and professional fees | 4,663 | — | 25,650 | — | |||||||||||
Integration costs | 1,615 | — | 5,292 | — | |||||||||||
Employee termination charges | 13 | — | 103 | — | |||||||||||
HHI Business Acquisition and integration related charges | $ | 6,291 | $ | — | $ | 31,045 | $ | — | |||||||
Shaser | 161 | — | 4,534 | — | |||||||||||
FURminator | 372 | 1,738 | 1,605 | 6,337 | |||||||||||
Black Flag | 52 | 95 | 90 | 1,912 | |||||||||||
Other | 289 | 441 | 418 | 746 | |||||||||||
Total Acquisition and integration related charges | $ | 7,747 | $ | 5,274 | $ | 40,558 | $ | 20,625 |
3 | COMPREHENSIVE INCOME (LOSS) |
Three Months Ended | Nine Months Ended | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Foreign Currency Translation Adjustments: | ||||||||||||||||
Gross change before reclassification adjustment | $ | (7,830 | ) | $ | (34,148 | ) | $ | (25,385 | ) | $ | (30,538 | ) | ||||
Net reclassification adjustment for (gains) losses included in earnings | — | — | — | — | ||||||||||||
Gross change after reclassification adjustment | (7,830 | ) | (34,148 | ) | (25,385 | ) | (30,538 | ) | ||||||||
Deferred tax effect | — | — | — | — | ||||||||||||
Deferred tax valuation allowance | — | — | — | — | ||||||||||||
Other Comprehensive Loss | $ | (7,830 | ) | $ | (34,148 | ) | $ | (25,385 | ) | $ | (30,538 | ) | ||||
Unrealized Gains (Losses) on Derivative Instruments: | ||||||||||||||||
Gross change before reclassification adjustment | $ | 3,193 | $ | 3,210 | $ | 4,595 | $ | 391 | ||||||||
Net reclassification adjustment for (gains) losses included in earnings | (507 | ) | (309 | ) | (80 | ) | 3,214 | |||||||||
Gross change after reclassification adjustment | 2,686 | 2,901 | 4,515 | 3,605 | ||||||||||||
Deferred tax effect | (450 | ) | (1,891 | ) | (1,566 | ) | (1,478 | ) | ||||||||
Deferred tax valuation allowance | (456 | ) | 465 | (91 | ) | 243 | ||||||||||
Other Comprehensive Income | $ | 1,780 | $ | 1,475 | $ | 2,858 | $ | 2,370 | ||||||||
Defined Benefit Pension Plans: | ||||||||||||||||
Gross change before reclassification adjustment | $ | (575 | ) | $ | 217 | $ | (2,164 | ) | $ | 539 | ||||||
Net reclassification adjustment for losses included in Cost of goods sold | 326 | 152 | 979 | 320 | ||||||||||||
Net reclassification adjustment for losses included in Selling expenses | 41 | 19 | 122 | 40 | ||||||||||||
Net reclassification adjustment for losses included in General and administrative expenses | 152 | 71 | 456 | 148 | ||||||||||||
Gross change after reclassification adjustment | (56 | ) | 459 | (607 | ) | 1,047 | ||||||||||
Deferred tax effect | (38 | ) | (37 | ) | 205 | (94 | ) | |||||||||
Deferred tax valuation allowance | 42 | — | 54 | (29 | ) | |||||||||||
Other Comprehensive (Loss) Income | $ | (52 | ) | $ | 422 | $ | (348 | ) | $ | 924 | ||||||
Total Other Comprehensive Loss, net of tax | $ | (6,102 | ) | $ | (32,251 | ) | $ | (22,875 | ) | $ | (27,244 | ) |
4 | INVENTORIES |
June 30, 2013 | September 30, 2012 | ||||||
Raw materials | $ | 108,284 | $ | 58,515 | |||
Work-in-process | 53,461 | 23,434 | |||||
Finished goods | 545,595 | 370,684 | |||||
$ | 707,340 | $ | 452,633 |
5 | GOODWILL AND INTANGIBLE ASSETS |
Global Batteries & Appliances | Hardware & Home Improvement | Global Pet Supplies | Home and Garden Business | Total | |||||||||||||||
Goodwill: | |||||||||||||||||||
Balance at September 30, 2012 | $ | 268,556 | $ | — | $ | 237,932 | $ | 187,757 | $ | 694,245 | |||||||||
Additions | 65,618 | 720,890 | — | 1,179 | 787,687 | ||||||||||||||
Effect of translation | (5,432 | ) | (5,817 | ) | (503 | ) | — | (11,752 | ) | ||||||||||
Balance at June 30, 2013 | $ | 328,742 | $ | 715,073 | $ | 237,429 | $ | 188,936 | $ | 1,470,180 | |||||||||
Intangible Assets: | |||||||||||||||||||
Trade names Not Subject to Amortization | |||||||||||||||||||
Balance at September 30, 2012 | $ | 545,426 | $ | — | $ | 212,142 | $ | 83,500 | $ | 841,068 | |||||||||
Additions | — | 330,000 | — | — | 330,000 | ||||||||||||||
Effect of translation | (4,887 | ) | (157 | ) | 886 | — | (4,158 | ) | |||||||||||
Balance at June 30, 2013 | $ | 540,539 | $ | 329,843 | $ | 213,028 | $ | 83,500 | $ | 1,166,910 | |||||||||
Intangible Assets Subject to Amortization | |||||||||||||||||||
Balance at September 30, 2012, net | $ | 447,112 | — | $ | 264,622 | $ | 162,127 | $ | 873,861 | ||||||||||
Additions | 32,800 | 157,100 | 749 | — | 190,649 | ||||||||||||||
Amortization during period | (26,818 | ) | (7,565 | ) | (16,013 | ) | (7,106 | ) | (57,502 | ) | |||||||||
Effect of translation | (3,276 | ) | (698 | ) | (540 | ) | — | (4,514 | ) | ||||||||||
Balance at June 30, 2013, net | $ | 449,818 | $ | 148,837 | $ | 248,818 | $ | 155,021 | $ | 1,002,494 | |||||||||
Total Intangible Assets, net at June 30, 2013 | $ | 990,357 | $ | 478,680 | $ | 461,846 | $ | 238,521 | $ | 2,169,404 |
June 30, 2013 | September 30, 2012 | ||||||
Technology Assets Subject to Amortization: | |||||||
Gross balance | $ | 175,473 | $ | 90,924 | |||
Accumulated amortization | (34,777 | ) | (22,768 | ) | |||
Carrying value, net | $ | 140,696 | $ | 68,156 | |||
Trade Names Subject to Amortization: | |||||||
Gross balance | $ | 171,482 | $ | 150,829 | |||
Accumulated amortization | (41,168 | ) | (28,347 | ) | |||
Carrying value, net | $ | 130,314 | $ | 122,482 | |||
Customer Relationships Subject to Amortization: | |||||||
Gross balance | $ | 879,410 | $ | 796,235 | |||
Accumulated amortization | (147,926 | ) | (113,012 | ) | |||
Carrying value, net | $ | 731,484 | $ | 683,223 | |||
Total Intangible Assets, net Subject to Amortization | $ | 1,002,494 | $ | 873,861 |
Three Months Ended | Nine Months Ended | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Proprietary technology amortization | $ | 4,470 | $ | 2,411 | $ | 12,009 | $ | 6,721 | |||||||
Trade names amortization | 4,264 | 3,509 | 12,162 | 9,788 | |||||||||||
Customer relationships amortization | 11,611 | 10,181 | 33,331 | 30,041 | |||||||||||
$ | 20,345 | $ | 16,101 | $ | 57,502 | $ | 46,550 |
6 | DEBT |
June 30, 2013 | September 30, 2012 | ||||||||||||
Amount | Rate | Amount | Rate | ||||||||||
Term Loan, due December 17, 2019 | $ | 757,457 | 4.6 | % | $ | — | — | % | |||||
Former term loan facility | — | — | 370,175 | 5.1 | % | ||||||||
9.5% Notes, due June 15, 2018 | 950,000 | 9.5 | % | 950,000 | 9.5 | % | |||||||
6.375% Notes, due November 15, 2020 | 520,000 | 6.4 | % | — | — | % | |||||||
6.625% Notes, due November 15, 2022 | 570,000 | 6.6 | % | — | — | % | |||||||
6.75% Notes, due March 15, 2020 | 300,000 | 6.8 | % | 300,000 | 6.8 | % | |||||||
ABL Facility, expiring May 24, 2017 | 69,500 | 2.1 | % | — | 4.3 | % | |||||||
Other notes and obligations | 32,966 | 8.3 | % | 18,059 | 10.9 | % | |||||||
Capitalized lease obligations | 29,861 | 6.2 | % | 26,683 | 6.2 | % | |||||||
$ | 3,229,784 | $ | 1,664,917 | ||||||||||
Original issuance (discounts) premiums on debt | (3,730 | ) | 4,383 | ||||||||||
Less: current maturities | 40,783 | 16,414 | |||||||||||
Long-term debt | $ | 3,185,271 | $ | 1,652,886 |
7 | DERIVATIVE FINANCIAL INSTRUMENTS |
Asset Derivatives | June 30, 2013 | September 30, 2012 | |||||||
Derivatives designated as hedging instruments under ASC 815: | |||||||||
Commodity contracts | Receivables—Other | $ | 21 | $ | 985 | ||||
Commodity contracts | Deferred charges and other | 16 | 1,017 | ||||||
Foreign exchange contracts | Receivables—Other | 5,197 | 1,194 | ||||||
Foreign exchange contracts | Deferred charges and other | 621 | — | ||||||
Total asset derivatives designated as hedging instruments under ASC 815 | 5,855 | 3,196 | |||||||
Derivatives not designated as hedging instruments under ASC 815: | |||||||||
Foreign exchange contracts | Receivables—Other | 24 | 41 | ||||||
Total asset derivatives | $ | 5,879 | $ | 3,237 |
Liability Derivatives | June 30, 2013 | September 30, 2012 | |||||||
Derivatives designated as hedging instruments under ASC 815: | |||||||||
Commodity contracts | Accounts payable | $ | 1,174 | $ | 9 | ||||
Commodity contracts | Other long-term liabilities | 79 | — | ||||||
Foreign exchange contracts | Accounts payable | 126 | 3,063 | ||||||
Foreign exchange contracts | Other long-term liabilities | 13 | — | ||||||
Total liability derivatives designated as hedging instruments under ASC 815 | $ | 1,392 | $ | 3,072 | |||||
Derivatives not designated as hedging instruments under ASC 815: | |||||||||
Commodity contract | Accounts payable | 197 | — | ||||||
Foreign exchange contracts | Accounts payable | 3,324 | 3,967 | ||||||
Foreign exchange contracts | Other long-term liabilities | 1,078 | 2,926 | ||||||
Total liability derivatives | $ | 5,991 | $ | 9,965 |
Derivatives in ASC 815 Cash Flow Hedging Relationships | Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Location of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | ||||||||||
Commodity contracts | $ | (930 | ) | Cost of goods sold | $ | (321 | ) | Cost of goods sold | $ | 11 | |||||
Foreign exchange contracts | 89 | Net sales | 313 | Net sales | — | ||||||||||
Foreign exchange contracts | 4,034 | Cost of goods sold | 515 | Cost of goods sold | — | ||||||||||
Total | $ | 3,193 | $ | 507 | $ | 11 |
Derivatives in ASC 815 Cash Flow Hedging Relationships | Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Location of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | ||||||||||
Commodity contracts | $ | (3,361 | ) | Cost of goods sold | $ | (223 | ) | Cost of goods sold | $ | (71 | ) | ||||
Foreign exchange contracts | 755 | Net sales | 653 | Net sales | — | ||||||||||
Foreign exchange contracts | 7,201 | Cost of goods sold | (350 | ) | Cost of goods sold | — | |||||||||
Total | $ | 4,595 | $ | 80 | $ | (71 | ) |
Derivatives in ASC 815 Cash Flow Hedging Relationships | Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Location of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | ||||||||||
Commodity contracts | $ | (2,368 | ) | Cost of goods sold | $ | (120 | ) | Cost of goods sold | $ | (6 | ) | ||||
Foreign exchange contracts | (395 | ) | Net sales | (129 | ) | Net sales | — | ||||||||
Foreign exchange contracts | 5,973 | Cost of goods sold | 558 | Cost of goods sold | — | ||||||||||
Total | $ | 3,210 | $ | 309 | $ | (6 | ) |
Derivatives in ASC 815 Cash Flow Hedging Relationships | Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Location of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | ||||||||||
Commodity contracts | $ | (1,989 | ) | Cost of goods sold | $ | (675 | ) | Cost of goods sold | $ | 8 | |||||
Interest rate contracts | 15 | Interest expense | (864 | ) | Interest expense | — | |||||||||
Foreign exchange contracts | (61 | ) | Net sales | (339 | ) | Net sales | — | ||||||||
Foreign exchange contracts | 2,426 | Cost of goods sold | (1,336 | ) | Cost of goods sold | — | |||||||||
Total | $ | 391 | $ | (3,214 | ) | $ | 8 |
Derivatives Not Designated as Hedging Instruments Under ASC 815 | Amount of Gain (Loss) Recognized in Income on Derivatives | Location of Gain or (Loss) Recognized in Income on Derivatives | |||||||
2013 | 2012 | ||||||||
Commodity contracts | $ | (197 | ) | $ | — | Cost of goods sold | |||
Foreign exchange contracts | 477 | 7,941 | Other expense, net | ||||||
Total | $ | 280 | $ | 7,941 |
Derivatives Not Designated as Hedging Instruments Under ASC 815 | Amount of Gain (Loss) Recognized in Income on Derivatives | Location of Gain or (Loss) Recognized in Income on Derivatives | |||||||
2013 | 2012 | ||||||||
Commodity contracts | $ | (197 | ) | $ | — | Cost of goods sold | |||
Foreign exchange contracts | (1,834 | ) | 11,734 | Other expense, net | |||||
Total | $ | (2,031 | ) | $ | 11,734 |
8 | FAIR VALUE OF FINANCIAL INSTRUMENTS |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | |||||||||||||||
Foreign exchange contracts, net | $ | — | $ | 1,301 | $ | — | $ | 1,301 | |||||||
Total Assets, net | $ | — | $ | 1,301 | $ | — | $ | 1,301 | |||||||
Liabilities: | |||||||||||||||
Commodity contracts, net | $ | — | $ | (1,413 | ) | $ | — | $ | (1,413 | ) | |||||
Total Liabilities, net | $ | — | $ | (1,413 | ) | $ | — | $ | (1,413 | ) |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | |||||||||||||||
Commodity contracts, net | $ | — | $ | 1,993 | $ | — | $ | 1,993 | |||||||
Total Assets, net | $ | — | $ | 1,993 | $ | — | $ | 1,993 | |||||||
Liabilities: | |||||||||||||||
Foreign exchange contracts, net | $ | — | $ | (8,721 | ) | $ | — | $ | (8,721 | ) | |||||
Total Liabilities, net | $ | — | $ | (8,721 | ) | $ | — | $ | (8,721 | ) |
June 30, 2013 | September 30, 2012 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Total debt | $ | (3,226,054 | ) | $ | (3,395,679 | ) | $ | (1,669,300 | ) | $ | (1,804,831 | ) | |||
Commodity swap and option agreements | (1,413 | ) | (1,413 | ) | 1,993 | 1,993 | |||||||||
Foreign exchange forward agreements | 1,301 | 1,301 | (8,721 | ) | (8,721 | ) |
9 | EMPLOYEE BENEFIT PLANS |
Three Months Ended | Nine Months Ended | ||||||||||||||
Components of net periodic pension benefit and deferred compensation benefit cost | 2013 | 2012 | 2013 | 2012 | |||||||||||
Service cost | $ | 867 | $ | 578 | $ | 2,416 | $ | 1,700 | |||||||
Interest cost | 2,498 | 2,552 | 7,326 | 7,030 | |||||||||||
Expected return on assets | (2,196 | ) | (2,051 | ) | (6,589 | ) | (5,378 | ) | |||||||
Recognized net actuarial loss | 519 | 242 | 1,557 | 508 | |||||||||||
Employee contributions | (46 | ) | (46 | ) | (137 | ) | (139 | ) | |||||||
Net periodic benefit cost | $ | 1,642 | $ | 1,275 | $ | 4,573 | $ | 3,721 |
Three Months Ended | Nine Months Ended | ||||||||||||||
Pension and deferred compensation contributions | 2013 | 2012 | 2013 | 2012 | |||||||||||
Contributions made during period | $ | 1,188 | $ | 1,289 | $ | 2,890 | $ | 3,767 |
10 | INCOME TAXES |
11 | SEGMENT RESULTS |
Three Months Ended | Nine Months Ended | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net sales to external customers | |||||||||||||||
Consumer batteries | $ | 207,339 | $ | 211,198 | $ | 678,067 | $ | 684,277 | |||||||
Small appliances | 168,744 | 173,140 | 543,451 | 575,630 | |||||||||||
Electric shaving and grooming | 61,742 | 62,860 | 207,978 | 214,979 | |||||||||||
Electric personal care | 53,776 | 53,526 | 196,747 | 195,087 | |||||||||||
Global Batteries & Appliances | 491,601 | 500,724 | 1,626,243 | 1,669,973 | |||||||||||
Global Pet Supplies | 156,440 | 157,495 | 456,639 | 448,962 | |||||||||||
Home and Garden Business | 156,568 | 166,584 | 289,091 | 300,924 | |||||||||||
Hardware & Home Improvement | 285,216 | — | 575,876 | — | |||||||||||
Total segments | $ | 1,089,825 | $ | 824,803 | $ | 2,947,849 | $ | 2,419,859 | |||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Segment profit | |||||||||||||||
Global Batteries & Appliances | $ | 44,904 | $ | 47,093 | $ | 181,696 | $ | 185,726 | |||||||
Global Pet Supplies | 26,560 | 22,470 | 62,833 | 57,778 | |||||||||||
Home and Garden Business | 43,117 | 44,224 | 59,648 | 60,509 | |||||||||||
Hardware & Home Improvement | 42,963 | — | 46,483 | — | |||||||||||
Total segments | 157,544 | 113,787 | 350,660 | 304,013 | |||||||||||
Corporate expense | 20,493 | 9,227 | 44,698 | 32,762 | |||||||||||
Acquisition and integration related charges | 7,747 | 5,274 | 40,558 | 20,625 | |||||||||||
Restructuring and related charges | 13,245 | 3,896 | 27,736 | 15,890 | |||||||||||
Interest expense | 61,516 | 39,686 | 185,652 | 150,169 | |||||||||||
Other expense, net | 2,613 | 2,224 | 7,941 | 2,225 | |||||||||||
Income from continuing operations before income taxes | $ | 51,930 | $ | 53,480 | $ | 44,075 | $ | 82,342 |
June 30, 2013 | September 30, 2012 | ||||||
Segment total assets | |||||||
Global Batteries & Appliances | $ | 2,213,741 | $ | 2,243,472 | |||
Global Pet Supplies | 959,282 | 956,043 | |||||
Home and Garden Business | 542,525 | 508,083 | |||||
Hardware & Home Improvement | 1,787,178 | — | |||||
Total segment assets | 5,502,726 | 3,707,598 | |||||
Corporate | 37,946 | 45,913 | |||||
Total assets at period end | $ | 5,540,672 | $ | 3,753,511 |
12 | RESTRUCTURING AND RELATED CHARGES |
Three Months Ended | Nine Months Ended | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Cost of goods sold: | |||||||||||||||
Global Batteries & Appliances | $ | 93 | $ | 1,205 | $ | 907 | $ | 4,679 | |||||||
Hardware & Home Improvement | 644 | — | 1,772 | — | |||||||||||
Global Pet Supplies | 276 | 833 | 2,019 | 3,624 | |||||||||||
Total restructuring and related charges in cost of goods sold | 1,013 | 2,038 | 4,698 | 8,303 | |||||||||||
Operating expenses: | |||||||||||||||
Global Batteries & Appliances | 8,201 | 640 | 10,556 | 2,283 | |||||||||||
Hardware & Home Improvement | 1,698 | — | 3,251 | — | |||||||||||
Global Pet Supplies | 1,165 | 883 | 7,501 | 3,276 | |||||||||||
Home and Garden Business | 151 | 192 | 518 | 1,163 | |||||||||||
Corporate | 1,017 | 143 | 1,212 | 865 | |||||||||||
Total restructuring and related charges in operating expenses | 12,232 | 1,858 | 23,038 | 7,587 | |||||||||||
Total restructuring and related charges | $ | 13,245 | $ | 3,896 | $ | 27,736 | $ | 15,890 |
Termination Benefits | Other Costs | Total | |||||||||
Accrual balance at September 30, 2012 | $ | — | $ | — | $ | — | |||||
Provisions | 6,751 | — | 6,751 | ||||||||
Cash expenditures | (99 | ) | — | (99 | ) | ||||||
Non-cash items | (14 | ) | — | (14 | ) | ||||||
Accrual balance at June 30, 2013 | $ | 6,638 | $ | — | $ | 6,638 | |||||
Expensed as incurred (A) | $ | 798 | $ | 327 | $ | 1,125 |
(A) | Consists of amounts not impacting the accrual for restructuring and related charges. |
Global Batteries & Appliances | Corporate | Total | |||||||||
Restructuring and related charges during the nine month period ended June 30, 2013 | $ | 6,922 | $ | 954 | $ | 7,876 | |||||
Restructuring and related charges since initiative inception | $ | 6,922 | $ | 954 | $ | 7,876 | |||||
Total future restructuring and related charges expected | $ | 2,297 | $ | 250 | $ | 2,547 |
Termination Benefits | Other Costs | Total | |||||||||
Accrual balance at September 30, 2012 | $ | 3,252 | $ | 1,095 | $ | 4,347 | |||||
Provisions | 5,418 | 226 | 5,644 | ||||||||
Cash expenditures | (3,103 | ) | (1,055 | ) | (4,158 | ) | |||||
Non-cash items | (5 | ) | 40 | 35 | |||||||
Accrual balance at June 30, 2013 | $ | 5,562 | $ | 306 | $ | 5,868 | |||||
Expensed as incurred (A) | $ | 1,183 | $ | 7,800 | $ | 8,983 |
(A) | Consists of amounts not impacting the accrual for restructuring and related charges. |
Global Batteries & Appliances | Global Pet Supplies | Home and Garden Business | Corporate | Total | |||||||||||||||
Restructuring and related charges during the nine month period ended June 30, 2013 | $ | 4,589 | $ | 9,520 | $ | 518 | $ | — | $ | 14,627 | |||||||||
Restructuring and related charges since initiative inception | $ | 25,398 | $ | 46,519 | $ | 18,138 | $ | 7,591 | $ | 97,646 | |||||||||
Total future restructuring and related charges expected | $ | 693 | $ | 5,085 | $ | 1,009 | $ | — | $ | 6,787 |
13 | COMMITMENTS AND CONTINGENCIES |
14 | ACQUISITIONS |
Negotiated sales price, excluding TLM Taiwan | $ | 1,300,000 | |
Working capital and other adjustments at December 17, 2012 close | (10,738 | ) | |
Final working capital adjustment | (7,669 | ) | |
Final purchase price, excluding TLM Taiwan | $ | 1,281,593 | |
Negotiated sales price, TLM Taiwan | 100,000 | ||
Working capital and other adjustments at April 8, 2013 close | (6,500 | ) | |
Total HHI Business purchase price | $ | 1,375,093 |
HHI Business Preliminary Valuation December 30, 2012 | TLM Taiwan Preliminary Valuation June 30, 2013 | Adjustments / reclassifications | Preliminary Valuation June 30, 2013 | |||||||||
Cash | $ | 17,406 | 843 | $ | 5,836 | $ | 24,085 | |||||
Accounts receivable | 104,641 | 11 | 4,377 | 109,029 | ||||||||
Inventory | 207,160 | 1,135 | (2,393 | ) | 205,902 | |||||||
Prepaid expenses and other | 13,311 | 2,148 | (4,160 | ) | 11,299 | |||||||
Property, plant and equipment | 104,502 | 36,750 | (5,147 | ) | 136,105 | |||||||
Intangible assets | 470,000 | 17,100 | — | 487,100 | ||||||||
Other long-term assets | 3,051 | 124 | — | 3,175 | ||||||||
Total assets acquired | $ | 920,071 | $ | 58,111 | $ | (1,487 | ) | $ | 976,695 | |||
Accounts payable | 130,140 | — | 7,967 | 138,107 | ||||||||
Deferred tax liability - current | 7,081 | — | (32 | ) | 7,049 | |||||||
Accrued liabilities | 37,530 | 241 | 129 | 37,900 | ||||||||
Deferred tax liability - long-term | 104,708 | 1,930 | 11,177 | 117,815 | ||||||||
Other long-term liabilities | 11,231 | 8,089 | (2,168 | ) | 17,152 | |||||||
Total liabilities assumed | $ | 290,690 | $ | 10,260 | $ | 17,073 | $ | 318,023 | ||||
Total identifiable net assets | 629,381 | 47,851 | (18,560 | ) | 658,672 | |||||||
Non-controlling interest | (2,235 | ) | — | (2,234 | ) | (4,469 | ) | |||||
Goodwill | 662,116 | 45,649 | 13,125 | 720,890 | ||||||||
Total net assets | $ | 1,289,262 | $ | 93,500 | $ | (7,669 | ) | $ | 1,375,093 |
• | Inventories- An adjustment of $31,000 was recorded to adjust inventory to fair value. Finished goods were valued at estimated selling prices less the sum of costs of disposal and a reasonable profit allowance for the selling effort. |
• | Property, plant and equipment, net- An adjustment of $3,997 was recorded to adjust the net book value of property, plant and equipment to fair value giving consideration to the highest and best use of the assets. The valuation of the Company's property, plant and equipment was based on the cost approach. |
• | Certain indefinite-lived intangible assets were valued using a relief from royalty methodology. Customer relationships and certain definite-lived intangible assets were valued using a multi-period excess earnings method. The total fair value of indefinite and definite lived intangibles was $487,100. A summary of the significant key inputs is as follows: |
• | The Company valued customer relationships using the income approach, specifically the multi-period excess earnings method. In determining the fair value of the customer relationships, the multi-period excess earnings approach values the intangible asset at the present value of the incremental after-tax cash flows attributable only to the customer relationship after deducting contributory asset charges. The incremental after-tax cash flows attributable to the subject intangible asset are then discounted to their present value. Only expected sales from current customers were used, which included an annual expected growth rate of 2.5% - 3%. The Company assumed a customer retention rate of approximately 95%, which was supported by historical retention rates. Income taxes were estimated at 17% - 35% and amounts were discounted using a rate of 12%. The customer relationships were valued at $90,000 under this approach and will be amortized over 20 years. |
• | The Company valued indefinite-lived trade names and trademarks using the income approach, specifically the relief from royalty method. Under this method, the asset value was determined by estimating the hypothetical royalties that would have to be paid if the trade name was not owned. Royalty rates were selected based on consideration of several factors, including prior transactions of the HHI Business, related trademarks and trade names, other similar trademark licensing and transaction agreements and the relative profitability and perceived contribution of the trademarks and trade names. Royalty rates used in the determination of the fair values of trade names and trademarks ranged from 3% - 5% of expected net sales related to the respective trade names and trademarks. The Company anticipates using the majority of the trade names and trademarks for an indefinite period as demonstrated by the sustained use of each subject trademark. In estimating the fair value of the trademarks and trade names, Net sales for significant trade names and trademarks were estimated to grow at a rate of 2.5% - 5% annually with a terminal year growth rate of 2.5%. Income taxes were estimated at 35% and amounts were discounted using a rate of 12%. Trade name and trademarks were valued at $330,000 under this approach. |
• | The Company valued definite lived trade names using the income approach, specifically the relief from royalty method. Under this method, the asset value was determined by estimating the hypothetical royalties that would have to be paid if the trade name was not owned. Royalty rates were selected based on consideration of several factors, including prior transactions of the HHI Business, related trademarks and trade names, other similar trademark licensing and transaction agreements and the relative profitability and perceived contribution of the trademarks and trade names. The royalty rates used in the determination of the fair values of the trade names ranged from1% - 3.5% of expected net sales related to the respective trade name. The Company assumed an 8 year useful life of the trade name. In estimating the fair value of the trade name, Net sales for the trade name were estimated to grow at a rate of 2.5% - 5% annually. Income taxes were estimated at 17% - 35% and amounts were discounted using a rate of 12%. The trade names were valued at $4,100 under this approach. |
• | The Company valued a trade name license agreement using the income approach, specifically the relief from royalty method. Under this method, the asset value was determined by estimating the hypothetical royalties that would have to be paid if the trade name was not owned. Royalty rates were selected based on consideration of several factors, including prior transactions of the HHI Business, related trademarks and trade names, other similar trademark licensing and transaction agreements and the relative profitability and perceived contribution of the trademarks and trade names. The royalty rate used in the determination of the fair value of the trade name license agreement was 4% of expected Net sales related to the respective trade name. In estimating the fair value of the trade name license agreement, Net sales were estimated to grow at |
• | The Company valued technology using the income approach, specifically the relief from royalty method. Under this method, the asset value was determined by estimating the hypothetical royalties that would have to be paid if the technology was not owned. Royalty rates were selected based on consideration of several factors, including prior transactions of the HHI Business, related licensing agreements and the importance of the technology and profit levels, among other considerations. Royalty rates used in the determination of the fair values of technologies ranged from 4% - 5% of expected Net sales related to the respective technology. The Company anticipates using these technologies through the legal life of the underlying patent; therefore, the expected life of these technologies was equal to the remaining legal life of the underlying patents which was 10 years. In estimating the fair value of the technologies, Net sales were estimated to grow at a rate of 2.5% - 31% annually. Income taxes were estimated at 35% and amounts were discounted using the rate of 12%. The technology assets were valued at $51,000 under this approach. |
• | Deferred tax liabilities, net- An adjustment of $124,864 was recorded to adjust deferred taxes for the preliminary fair value adjustments made in accounting for the purchase. |
Three Months Ended | Nine Months Ended | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net sales: | |||||||||||||||
Reported Net sales | $ | 1,089,825 | $ | 824,803 | $ | 2,947,849 | $ | 2,419,859 | |||||||
HHI Business adjustment (1) | — | 253,004 | 191,777 | 716,862 | |||||||||||
Pro forma Net sales | $ | 1,089,825 | $ | 1,077,807 | $ | 3,139,626 | $ | 3,136,721 | |||||||
Net income (loss): | |||||||||||||||
Reported Net income (loss) (2) (3) | $ | 36,761 | $ | 58,851 | $ | (10,853 | ) | $ | 43,570 | ||||||
HHI Business adjustment (1) | — | 26,665 | 4,942 | 49,593 | |||||||||||
Pro forma Net income (loss) | $ | 36,761 | $ | 85,516 | $ | (5,911 | ) | $ | 93,163 |
(1) | The results related to the HHI Business adjustment do not reflect the TLM Taiwan business as stand alone financial data is not available for the periods periods presented. The TLM Taiwan business is not deemed material to the operating results of the Company. |
(2) | Included in Reported Net loss for the nine month period ended June 30, 2013, is an adjustment of $49,291 to record the income tax benefit resulting from the reversal of U.S. valuation allowances on deferred tax assets as a result of the HHI Business acquisition. For information pertaining to the income tax benefit, see Note 11, “Income Taxes.” |
(3) | Included in Reported Net loss for the three and nine month periods ended June 30, 2013, is $6,291 and $31,045, respectively, of Acquisition and integration related charges as a result of the HHI Business acquisition. For information pertaining to Acquisition and integration related charges, see Note 2, “Significant Accounting Policies - Acquisition and Integration Related Charges.” |
Negotiated sales price | $ | 50,000 | |
Less: negotiated sales price attributable to SB Holdings | 6,197 | ||
Preliminary working capital adjustment | (423 | ) | |
Preliminary purchase price | $ | 43,380 |
Preliminary Valuation December 30, 2012 | Adjustments / reclassifications | Preliminary Valuation June 30, 2013 | |||||||
Cash | $ | 870 | $ | — | $ | 870 | |||
Intangible asset | 35,500 | (2,700 | ) | 32,800 | |||||
Other assets | 2,679 | — | 2,679 | ||||||
Total assets acquired | $ | 39,049 | $ | (2,700 | ) | $ | 36,349 | ||
Total liabilities assumed | 14,398 | (962 | ) | 13,436 | |||||
Total identifiable net assets | 24,651 | (1,738 | ) | 22,913 | |||||
Non-controlling interest | (38,954 | ) | — | (38,954 | ) | ||||
Goodwill | 63,880 | 1,738 | 65,618 | ||||||
Total identifiable net assets | $ | 49,577 | $ | — | $ | 49,577 |
• | The Company valued the technology assets using the income approach, specifically the relief from royalty method. Under this method, the asset value was determined by estimating the hypothetical royalties that would have to be paid if the technology was not owned. Royalty rates were selected based on consideration of several factors, including prior transactions of Shaser, related licensing agreements and the importance of the technology and profit levels, among other considerations. The royalty rate used in the determination of the fair value of the technology asset was 10.5% of expected Net sales related to the technology. The Company anticipates using the technology through the legal life of the underlying patent and therefore the expected life of the technology was equal to the remaining legal life of the underlying patent which was 13 years. In estimating the fair value of the technology, Net sales were estimated to grow at a long-term rate of 3% annually. Income taxes were estimated at 35% and amounts were discounted using the rate of 11%. The technology asset was valued at approximately $32,800 under this approach. |
• | The Company valued the non-controlling interest in Shaser, a private company, by applying both income and market approaches. Under these methods, the non-controlling value was determined by using a discounted cash flow method, a guideline companies method, and a recent transaction approach. In estimating the fair value of the non-controlling interest, key assumptions include (i) cash flow projections based on market participant data and estimates by Company management, with Net sales estimated to grow at a terminal growth rate of 3% annually, income taxes estimated at 35%, and amounts discounted using a rate of 12%, (ii) financial multiples of companies deemed to be similar to Shaser, and (iii) adjustments because of lack of control or lack of marketability that market participants would consider when estimating the fair value of the non-controlling interest in Shaser. The non-controlling interest was valued at $38,954 under this approach. |
• | The Company, in connection with valuing the non-controlling interest in Shaser, also valued the Call Option. In addition to the valuation methods and key assumptions discussed above, the Company compared the forecasted revenue and EBITDA multiples, as defined, associated with the Call Option to current guideline companies. The Call Option was determined to have an immaterial value under this approach. |
16 | NEW ACCOUNTING PRONOUNCEMENTS |
17 | CONSOLIDATING FINANCIAL STATEMENTS |
Parent | Guarantor Subsidiaries | Nonguarantor Subsidiaries | Eliminations | Consolidated Total | |||||||||||||||
ASSETS | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 682 | $ | 2,732 | $ | 95,490 | $ | — | $ | 98,904 | |||||||||
Receivables: | |||||||||||||||||||
Trade accounts receivables, net of allowances | 41,796 | 106,106 | 331,405 | — | 479,307 | ||||||||||||||
Intercompany receivables | 220,219 | 904,187 | (190,895 | ) | (930,162 | ) | 3,349 | ||||||||||||
Other | 2,210 | 12,909 | 56,475 | — | 71,594 | ||||||||||||||
Inventories | 103,035 | 183,363 | 429,895 | (8,953 | ) | 707,340 | |||||||||||||
Deferred income taxes | (5,697 | ) | 23,257 | 1,414 | 2,278 | 21,252 | |||||||||||||
Prepaid expenses and other | 19,138 | 8,705 | 113,353 | (71,396 | ) | 69,800 | |||||||||||||
Total current assets | 381,383 | 1,241,259 | 837,137 | (1,008,233 | ) | 1,451,546 | |||||||||||||
Property, plant and equipment, net | 68,111 | 46,562 | 240,577 | — | 355,250 | ||||||||||||||
Long-term intercompany receivables | 108,626 | 132,430 | 40,220 | (281,276 | ) | — | |||||||||||||
Deferred charges and other | 6,353 | 2,011 | 14,025 | — | 22,389 | ||||||||||||||
Goodwill | 67,722 | 440,043 | 962,415 | — | 1,470,180 | ||||||||||||||
Intangible assets, net | 507,135 | 746,714 | 915,555 | — | 2,169,404 | ||||||||||||||
Debt issuance costs | 70,064 | — | 1,839 | — | 71,903 | ||||||||||||||
Investments in subsidiaries | 3,979,462 | 2,412,934 | 445 | (6,392,841 | ) | — | |||||||||||||
Total assets | $ | 5,188,856 | $ | 5,021,953 | $ | 3,012,213 | $ | (7,682,350 | ) | $ | 5,540,672 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Current maturities of long-term debt | $ | 6,786 | $ | 1,346 | $ | 32,651 | $ | — | $ | 40,783 | |||||||||
Accounts payable | 66,577 | 80,464 | 280,498 | — | 427,539 | ||||||||||||||
Intercompany accounts payable | 920,146 | 309,386 | 124,341 | (1,353,873 | ) | — | |||||||||||||
Accrued liabilities: | |||||||||||||||||||
Wages and benefits | 3,941 | 8,065 | 51,617 | — | 63,623 | ||||||||||||||
Income taxes payable | 44 | 97 | 29,445 | — | 29,586 | ||||||||||||||
Accrued interest | 25,983 | — | 923 | — | 26,906 | ||||||||||||||
Other | 21,772 | 33,447 | 100,191 | — | 155,410 | ||||||||||||||
Total current liabilities | 1,045,249 | 432,805 | 619,666 | (1,353,873 | ) | 743,847 | |||||||||||||
Long-term debt, net of current maturities | 3,073,415 | 2,554 | 109,302 | — | 3,185,271 | ||||||||||||||
Intercompany long-term debt | — | 349,173 | (421,709 | ) | 72,536 | — | |||||||||||||
Employee benefit obligations, net of current portion | 33,016 | — | 76,324 | — | 109,340 | ||||||||||||||
Deferred income taxes | 42,598 | 256,898 | 203,958 | — | 503,454 | ||||||||||||||
Other | 12,045 | 1,062 | 11,738 | — | 24,845 | ||||||||||||||
Total liabilities | 4,206,323 | 1,042,492 | 599,279 | (1,281,337 | ) | 4,566,757 | |||||||||||||
Shareholders’ equity: | |||||||||||||||||||
Other capital | 1,394,424 | 3,181,285 | 2,218,803 | (5,408,706 | ) | 1,385,806 | |||||||||||||
Accumulated (deficit) retained earnings | (406,513 | ) | 780,417 | 172,322 | (952,739 | ) | (406,513 | ) | |||||||||||
Accumulated other comprehensive loss | (56,310 | ) | (39,365 | ) | (35,315 | ) | 74,680 | (56,310 | ) | ||||||||||
Total shareholders’ equity | 931,601 | 3,922,337 | 2,355,810 | (6,286,765 | ) | 922,983 | |||||||||||||
Non-controlling interest | 50,932 | 57,124 | 57,124 | (114,248 | ) | 50,932 | |||||||||||||
Total equity | 982,533 | 3,979,461 | 2,412,934 | (6,401,013 | ) | 973,915 | |||||||||||||
Total liabilities and shareholders’ equity | $ | 5,188,856 | $ | 5,021,953 | $ | 3,012,213 | $ | (7,682,350 | ) | $ | 5,540,672 |
Parent | Guarantor Subsidiaries | Nonguarantor Subsidiaries | Eliminations | Consolidated Total | |||||||||||||||
ASSETS | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 6,729 | $ | 13,302 | $ | 137,841 | $ | — | $ | 157,872 | |||||||||
Receivables: | |||||||||||||||||||
Trade accounts receivables, net of allowances | 51,991 | 87,382 | 195,928 | — | 335,301 | ||||||||||||||
Intercompany receivables | 242,449 | 961,195 | 332,975 | (1,534,668 | ) | 1,951 | |||||||||||||
Other | 1,705 | 6,639 | 29,772 | — | 38,116 | ||||||||||||||
Inventories | 87,482 | 174,254 | 197,467 | (6,570 | ) | 452,633 | |||||||||||||
Deferred income taxes | (5,545 | ) | 23,766 | 8,276 | 1,646 | 28,143 | |||||||||||||
Prepaid expenses and other | 16,534 | 4,721 | 28,022 | (4 | ) | 49,273 | |||||||||||||
Total current assets | 401,345 | 1,271,259 | 930,281 | (1,539,596 | ) | 1,063,289 | |||||||||||||
Property, plant and equipment, net | 61,246 | 47,633 | 105,138 | — | 214,017 | ||||||||||||||
Long term intercompany receivables | 103,358 | 110,076 | 73,731 | (287,165 | ) | — | |||||||||||||
Deferred charges and other | 9,094 | 1,920 | 16,697 | — | 27,711 | ||||||||||||||
Goodwill | 67,722 | 438,864 | 187,659 | — | 694,245 | ||||||||||||||
Intangible assets, net | 514,968 | 777,220 | 422,741 | — | 1,714,929 | ||||||||||||||
Debt issuance costs | 39,320 | — | — | — | 39,320 | ||||||||||||||
Investments in subsidiaries | 2,678,029 | 1,120,830 | 445 | (3,799,304 | ) | — | |||||||||||||
Total assets | $ | 3,875,082 | $ | 3,767,802 | $ | 1,736,692 | $ | (5,626,065 | ) | $ | 3,753,511 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Current maturities of long-term debt | $ | 3,939 | $ | 1,667 | $ | 10,808 | $ | — | $ | 16,414 | |||||||||
Accounts payable | 79,522 | 107,065 | 138,436 | — | 325,023 | ||||||||||||||
Intercompany accounts payable | 993,646 | 321,210 | 20,261 | (1,335,117 | ) | — | |||||||||||||
Accrued liabilities: | |||||||||||||||||||
Wages and benefits | 21,682 | 18,158 | 42,279 | — | 82,119 | ||||||||||||||
Income taxes payable | (96 | ) | 64 | 30,304 | — | 30,272 | |||||||||||||
Accrued interest | 30,427 | — | 46 | — | 30,473 | ||||||||||||||
Other | 20,331 | 38,366 | 65,900 | — | 124,597 | ||||||||||||||
Total current liabilities | 1,149,451 | 486,530 | 308,034 | (1,335,117 | ) | 608,898 | |||||||||||||
Long-term debt, net of current maturities | 1,622,060 | 3,259 | 27,567 | — | 1,652,886 | ||||||||||||||
Long-term intercompany debt | — | 376,754 | 109,966 | (486,720 | ) | — | |||||||||||||
Employee benefit obligations, net of current portion | 24,560 | — | 65,434 | — | 89,994 | ||||||||||||||
Deferred income taxes | 64,727 | 222,994 | 89,744 | — | 377,465 | ||||||||||||||
Other | 16,225 | 236 | 15,117 | — | 31,578 | ||||||||||||||
Total liabilities | 2,877,023 | 1,089,773 | 615,862 | (1,821,837 | ) | 2,760,821 | |||||||||||||
Shareholders’ equity: | |||||||||||||||||||
Other equity | 1,365,315 | 2,089,602 | 1,078,928 | (3,173,899 | ) | 1,359,946 | |||||||||||||
Accumulated (deficit) retained earnings | (333,821 | ) | 606,196 | 55,262 | (661,458 | ) | (333,821 | ) | |||||||||||
Accumulated other comprehensive (deficit) income | (33,435 | ) | (17,769 | ) | (13,360 | ) | 31,129 | (33,435 | ) | ||||||||||
Total shareholders’ equity (deficit) | 998,059 | 2,678,029 | 1,120,830 | (3,804,228 | ) | 992,690 | |||||||||||||
Total liabilities and shareholders’ equity | $ | 3,875,082 | $ | 3,767,802 | $ | 1,736,692 | $ | (5,626,065 | ) | $ | 3,753,511 |
Parent | Guarantor Subsidiaries | Nonguarantor Subsidiaries | Eliminations | Consolidated Total | |||||||||||||||
Net sales | $ | 138,746 | $ | 344,883 | $ | 870,895 | $ | (264,699 | ) | $ | 1,089,825 | ||||||||
Cost of goods sold | 103,974 | 226,763 | 638,178 | (262,862 | ) | 706,053 | |||||||||||||
Restructuring and related charges | — | 275 | 738 | — | 1,013 | ||||||||||||||
Gross profit | 34,772 | 117,845 | 231,979 | (1,837 | ) | 382,759 | |||||||||||||
Operating expenses: | |||||||||||||||||||
Selling | 17,018 | 37,834 | 110,585 | (259 | ) | 165,178 | |||||||||||||
General and administrative | 16,446 | 20,108 | 33,503 | — | 70,057 | ||||||||||||||
Research and development | 4,806 | 2,490 | 4,190 | — | 11,486 | ||||||||||||||
Acquisition and integration related charges | 5,294 | 967 | 1,486 | — | 7,747 | ||||||||||||||
Restructuring and related charges | 3,415 | 2,856 | 5,961 | — | 12,232 | ||||||||||||||
Total operating expense | 46,979 | 64,255 | 155,725 | (259 | ) | 266,700 | |||||||||||||
Operating income | (12,207 | ) | 53,590 | 76,254 | (1,578 | ) | 116,059 | ||||||||||||
Interest expense | 55,686 | 980 | 4,847 | 3 | 61,516 | ||||||||||||||
Other (income) expense, net | (87,536 | ) | (54,320 | ) | 2,714 | 141,755 | 2,613 | ||||||||||||
(Loss) income from continuing operations before income taxes | 19,643 | 106,930 | 68,693 | (143,336 | ) | 51,930 | |||||||||||||
Income tax expense | (17,118 | ) | 16,666 | 15,637 | (16 | ) | 15,169 | ||||||||||||
Net (loss) income | 36,761 | 90,264 | 53,056 | (143,320 | ) | 36,761 | |||||||||||||
Less: Net income attributable to non-controlling interest | 263 | 263 | 263 | (526 | ) | 263 | |||||||||||||
Net (loss) income attributable to controlling interest | $ | 36,498 | $ | 90,001 | $ | 52,793 | $ | (142,794 | ) | $ | 36,498 |
Parent | Guarantor Subsidiaries | Nonguarantor Subsidiaries | Eliminations | Consolidated Total | |||||||||||||||
Net (loss) income | $ | 36,761 | $ | 90,264 | $ | 53,056 | $ | (143,320 | ) | $ | 36,761 | ||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||
Foreign currency translation | (7,830 | ) | (7,834 | ) | (8,113 | ) | 15,947 | (7,830 | ) | ||||||||||
Unrealized gain on derivative instruments | 1,780 | 1,926 | 1,926 | (3,852 | ) | 1,780 | |||||||||||||
Defined benefit pension loss | (52 | ) | (52 | ) | (52 | ) | 104 | (52 | ) | ||||||||||
Other comprehensive (loss) income | (6,102 | ) | (5,960 | ) | (6,239 | ) | 12,199 | (6,102 | ) | ||||||||||
Comprehensive (loss) income | 30,659 | 84,304 | 46,817 | (131,121 | ) | 30,659 | |||||||||||||
Less: Comprehensive income attributable to non-controlling interest | 263 | 263 | 263 | (526 | ) | 263 | |||||||||||||
Comprehensive (loss) income attributable to controlling interest | 30,396 | 84,041 | 46,554 | (130,595 | ) | 30,396 |
Parent | Guarantor Subsidiaries | Nonguarantor Subsidiaries | Eliminations | Consolidated Total | |||||||||||||||
Net sales | $ | 149,130 | $ | 357,363 | $ | 433,024 | $ | (114,714 | ) | $ | 824,803 | ||||||||
Cost of goods sold | 109,719 | 239,647 | 296,558 | (114,855 | ) | 531,069 | |||||||||||||
Restructuring and related charges | — | 804 | 1,234 | — | 2,038 | ||||||||||||||
Gross profit | 39,411 | 116,912 | 135,232 | 141 | 291,696 | ||||||||||||||
Operating expenses: | |||||||||||||||||||
Selling | 18,348 | 40,096 | 71,552 | (145 | ) | 129,851 | |||||||||||||
General and administrative | 5,131 | 21,435 | 23,532 | 628 | 50,726 | ||||||||||||||
Research and development | 5,000 | 2,713 | 884 | — | 8,597 | ||||||||||||||
Acquisition and integration related charges | 1,055 | 3,003 | 1,216 | — | 5,274 | ||||||||||||||
Restructuring and related charges | 140 | 659 | 1,059 | — | 1,858 | ||||||||||||||
29,674 | 67,906 | 98,243 | 483 | 196,306 | |||||||||||||||
Operating (loss) income | 9,737 | 49,006 | 36,989 | (342 | ) | 95,390 | |||||||||||||
Interest expense | 35,204 | 1,401 | 3,078 | 3 | 39,686 | ||||||||||||||
Other (income) expense, net | (66,677 | ) | (16,711 | ) | 2,035 | 83,577 | 2,224 | ||||||||||||
(Loss) income from continuing operations before income taxes | 41,210 | 64,316 | 31,876 | (83,922 | ) | 53,480 | |||||||||||||
Income tax (benefit) expense | (17,641 | ) | 5,814 | 6,333 | 123 | (5,371 | ) | ||||||||||||
Net (loss) income | $ | 58,851 | $ | 58,502 | $ | 25,543 | $ | (84,045 | ) | $ | 58,851 |
Parent | Guarantor Subsidiaries | Nonguarantor Subsidiaries | Eliminations | Consolidated Total | |||||||||||||||
Net (loss) income | $ | 58,851 | $ | 58,502 | $ | 25,543 | $ | (84,045 | ) | $ | 58,851 | ||||||||
Other comprehensive income, net of tax: | |||||||||||||||||||
Foreign currency translation | (34,147 | ) | (34,357 | ) | (35,088 | ) | 69,444 | (34,148 | ) | ||||||||||
Unrealized loss on derivative instruments | 1,474 | 2,714 | 2,715 | (5,428 | ) | 1,475 | |||||||||||||
Defined benefit pension gain (loss) | 422 | 422 | 422 | (844 | ) | 422 | |||||||||||||
Other comprehensive income | (32,251 | ) | (31,221 | ) | (31,951 | ) | 63,172 | (32,251 | ) | ||||||||||
Comprehensive (loss) income | 26,600 | 27,281 | (6,408 | ) | (20,873 | ) | 26,600 |
Parent | Guarantor Subsidiaries | Nonguarantor Subsidiaries | Eliminations | Consolidated Total | |||||||||||||||
Net sales | $ | 466,600 | $ | 868,542 | $ | 2,256,031 | $ | (643,324 | ) | $ | 2,947,849 | ||||||||
Cost of goods sold | 340,769 | 590,325 | 1,656,965 | (638,727 | ) | 1,949,332 | |||||||||||||
Restructuring and related charges | — | 1,854 | 2,844 | — | 4,698 | ||||||||||||||
Gross profit | 125,831 | 276,363 | 596,222 | (4,597 | ) | 993,819 | |||||||||||||
Operating expenses: | |||||||||||||||||||
Selling | 56,222 | 107,418 | 302,037 | (716 | ) | 464,961 | |||||||||||||
General and administrative | 51,182 | 56,660 | 88,216 | 19 | 196,077 | ||||||||||||||
Research and development | 13,330 | 7,424 | 10,763 | — | 31,517 | ||||||||||||||
Acquisition and integration related charges | 32,099 | 3,631 | 4,828 | — | 40,558 | ||||||||||||||
Restructuring and related charges | 3,877 | 9,195 | 9,966 | — | 23,038 | ||||||||||||||
156,710 | 184,328 | 415,810 | (697 | ) | 756,151 | ||||||||||||||
Operating (loss) income | (30,879 | ) | 92,035 | 180,412 | (3,900 | ) | 237,668 | ||||||||||||
Interest expense | 168,808 | 3,132 | 13,705 | 7 | 185,652 | ||||||||||||||
Other (income) expense, net | (170,869 | ) | (121,518 | ) | 7,531 | 292,797 | 7,941 | ||||||||||||
(Loss) income from continuing operations before income taxes | (28,818 | ) | 210,421 | 159,176 | (296,704 | ) | 44,075 | ||||||||||||
Income tax (benefit) expense | (17,965 | ) | 35,106 | 38,419 | (632 | ) | 54,928 | ||||||||||||
Net (loss) income | (10,853 | ) | 175,315 | 120,757 | (296,072 | ) | (10,853 | ) | |||||||||||
Less: Net loss attributable to non-controlling interest | 8 | 8 | 8 | (16 | ) | 8 | |||||||||||||
Net (loss) income attributable to controlling interest | $ | (10,861 | ) | $ | 175,307 | $ | 120,749 | $ | (296,056 | ) | $ | (10,861 | ) |
Parent | Guarantor Subsidiaries | Nonguarantor Subsidiaries | Eliminations | Consolidated Total | |||||||||||||||
Net (loss) income | $ | (10,853 | ) | $ | 175,315 | $ | 120,757 | $ | (296,072 | ) | $ | (10,853 | ) | ||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||
Foreign currency translation | (25,385 | ) | (25,457 | ) | (25,817 | ) | 51,274 | (25,385 | ) | ||||||||||
Unrealized gain on derivative instruments | 2,858 | 4,209 | 4,209 | (8,418 | ) | 2,858 | |||||||||||||
Defined benefit pension loss | (348 | ) | (347 | ) | (347 | ) | 694 | (348 | ) | ||||||||||
Other comprehensive (loss) income | (22,875 | ) | (21,595 | ) | (21,955 | ) | 43,550 | (22,875 | ) | ||||||||||
Comprehensive (loss) income | (33,728 | ) | 153,720 | 98,802 | (252,522 | ) | (33,728 | ) | |||||||||||
Less: Comprehensive loss attributable to non-controlling interest | 8 | 8 | 8 | (16 | ) | 8 | |||||||||||||
Comprehensive (loss) income attributable to controlling interest | (33,736 | ) | 153,712 | 98,794 | (252,506 | ) | (33,736 | ) |
Parent | Guarantor Subsidiaries | Nonguarantor Subsidiaries | Eliminations | Consolidated Total | |||||||||||||||
Net sales | $ | 489,068 | $ | 915,117 | $ | 1,411,931 | $ | (396,257 | ) | $ | 2,419,859 | ||||||||
Cost of goods sold | 354,725 | 638,757 | 977,269 | (394,948 | ) | 1,575,803 | |||||||||||||
Restructuring and related charges | — | 3,595 | 4,708 | — | 8,303 | ||||||||||||||
Gross profit | 134,343 | 272,765 | 429,954 | (1,309 | ) | 835,753 | |||||||||||||
Operating expenses: | |||||||||||||||||||
Selling | 56,103 | 115,730 | 220,385 | (696 | ) | 391,522 | |||||||||||||
General and administrative | 36,322 | 58,881 | 60,550 | 1,740 | 157,493 | ||||||||||||||
Research and development | 13,600 | 7,412 | 2,778 | — | 23,790 | ||||||||||||||
Acquisition and integration related charges | 7,364 | 8,931 | 4,330 | — | 20,625 | ||||||||||||||
Restructuring and related charges | 1,596 | 3,819 | 2,172 | — | 7,587 | ||||||||||||||
114,985 | 194,773 | 290,215 | 1,044 | 601,017 | |||||||||||||||
Operating income | 19,358 | 77,992 | 139,739 | (2,353 | ) | 234,736 | |||||||||||||
Interest expense | 136,257 | 3,760 | 10,150 | 2 | 150,169 | ||||||||||||||
Other (income) expense, net | (150,859 | ) | (86,912 | ) | 3,153 | 236,843 | 2,225 | ||||||||||||
(Loss) income from continuing operations before income taxes | 33,960 | 161,144 | 126,436 | (239,198 | ) | 82,342 | |||||||||||||
Income tax expense | (9,610 | ) | 21,735 | 26,690 | (43 | ) | 38,772 | ||||||||||||
Net (loss) income | $ | 43,570 | $ | 139,409 | $ | 99,746 | $ | (239,155 | ) | $ | 43,570 |
Parent | Guarantor Subsidiaries | Nonguarantor Subsidiaries | Eliminations | Consolidated Total | |||||||||||||||
Net (loss) income | $ | 43,570 | $ | 139,409 | $ | 99,746 | $ | (239,155 | ) | $ | 43,570 | ||||||||
Other comprehensive income, net of tax: | |||||||||||||||||||
Foreign currency translation | (30,538 | ) | (30,462 | ) | (30,415 | ) | 60,877 | (30,538 | ) | ||||||||||
Unrealized gain (loss) on derivative instruments | 2,370 | 2,211 | 2,211 | (4,422 | ) | 2,370 | |||||||||||||
Defined benefit pension gain | 924 | 5,261 | 645 | (5,906 | ) | 924 | |||||||||||||
Other comprehensive income | (27,244 | ) | (22,990 | ) | (27,559 | ) | 50,549 | (27,244 | ) | ||||||||||
Comprehensive (loss) income | 16,326 | 116,419 | 72,187 | (188,606 | ) | 16,326 |
Parent | Guarantor Subsidiaries | Nonguarantor Subsidiaries | Eliminations | Consolidated Total | |||||||||||||||
Net cash (used) provided by operating activities | $ | (230,744 | ) | $ | 41,163 | $ | 672,999 | $ | (559,256 | ) | $ | (75,838 | ) | ||||||
Cash flows from investing activities: | |||||||||||||||||||
Purchases of property, plant and equipment | (14,857 | ) | (5,958 | ) | (24,421 | ) | — | (45,236 | ) | ||||||||||
Acquisition of Shaser, net of cash acquired | — | — | (42,510 | ) | — | (42,510 | ) | ||||||||||||
Acquisition of the HHI Business, net of cash acquired | — | (1,351,008 | ) | — | — | (1,351,008 | ) | ||||||||||||
Other investing activities | 73 | (1,289 | ) | 75 | — | (1,141 | ) | ||||||||||||
Net cash used by investing activities | (14,784 | ) | (1,358,255 | ) | (66,856 | ) | — | (1,439,895 | ) | ||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Proceeds from issuance of Term Loan | 700,000 | — | 92,000 | — | 792,000 | ||||||||||||||
Proceeds from issuance of 6.375% Notes | 520,000 | — | — | — | 520,000 | ||||||||||||||
Proceeds from issuance of 6.625% Notes | 570,000 | — | — | — | 570,000 | ||||||||||||||
Payment of senior credit facilities, excluding ABL revolving credit facility | (406,904 | ) | — | — | — | (406,904 | ) | ||||||||||||
Debt issuance costs | (42,333 | ) | — | (2,136 | ) | — | (44,469 | ) | |||||||||||
Other debt financing, net | — | — | 17,080 | — | 17,080 | ||||||||||||||
Reduction of other debt | — | — | (1,970 | ) | — | (1,970 | ) | ||||||||||||
ABL revolving credit facility, net | 69,500 | — | — | — | 69,500 | ||||||||||||||
Capital contribution from parent | 28,562 | — | — | — | 28,562 | ||||||||||||||
Cash dividends paid to parent | (61,842 | ) | — | — | — | (61,842 | ) | ||||||||||||
Share based award tax withholding payments | (20,141 | ) | — | — | — | (20,141 | ) | ||||||||||||
Advances related to intercompany transactions | (1,117,361 | ) | 1,306,522 | (748,417 | ) | 559,256 | — | ||||||||||||
Net cash provided (used) by financing activities | 239,481 | 1,306,522 | (643,443 | ) | 559,256 | 1,461,816 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents due to Venezuela devaluation | — | — | (1,870 | ) | — | (1,870 | ) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (3,181 | ) | — | (3,181 | ) | ||||||||||||
Net (decrease) increase in cash and cash equivalents | (6,047 | ) | (10,570 | ) | (42,351 | ) | — | (58,968 | ) | ||||||||||
Cash and cash equivalents, beginning of period | 6,729 | 13,302 | 137,841 | — | 157,872 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 682 | $ | 2,732 | $ | 95,490 | $ | — | $ | 98,904 |
Parent | Guarantor Subsidiaries | Nonguarantor Subsidiaries | Eliminations | Consolidated Total | |||||||||||||||
Net cash (used) provided by operating activities | (46,049 | ) | 188,635 | 125,730 | (336,244 | ) | (67,928 | ) | |||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Purchases of property, plant and equipment | (14,321 | ) | (9,719 | ) | (9,077 | ) | — | (33,117 | ) | ||||||||||
Acquisition of Black Flag | — | (43,750 | ) | — | — | (43,750 | ) | ||||||||||||
Acquisition of FURminator, net of cash | — | (139,390 | ) | — | — | (139,390 | ) | ||||||||||||
Other investing activities | 135 | (92 | ) | (1,670 | ) | — | (1,627 | ) | |||||||||||
Net cash used by investing activities | (14,186 | ) | (192,951 | ) | (10,747 | ) | — | (217,884 | ) | ||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Proceeds from 6.75% Notes | 300,000 | — | — | — | 300,000 | ||||||||||||||
Payment of 12% Notes, including tender and call premium | (270,431 | ) | — | — | — | (270,431 | ) | ||||||||||||
Proceeds from new 9.5% Notes, including premium | 217,000 | — | — | — | 217,000 | ||||||||||||||
Payment of senior credit facilities, excluding ABL revolving credit facility | (4,091 | ) | — | — | — | (4,091 | ) | ||||||||||||
Debt issuance costs | (11,163 | ) | — | — | — | (11,163 | ) | ||||||||||||
Other debt financing, net | — | — | 6,192 | — | 6,192 | ||||||||||||||
Reduction of other debt | (25,000 | ) | — | (2,992 | ) | — | (27,992 | ) | |||||||||||
ABL revolving credit facility, net | 2,500 | — | — | — | 2,500 | ||||||||||||||
Share based award tax withholding payments | (3,936 | ) | — | — | — | (3,936 | ) | ||||||||||||
Other financing activities | — | (953 | ) | — | — | (953 | ) | ||||||||||||
Proceeds from (advances related to) intercompany transactions | (144,229 | ) | (1,360 | ) | (190,655 | ) | 336,244 | — | |||||||||||
Net cash provided (used) by financing activities | 60,650 | (2,313 | ) | (187,455 | ) | 336,244 | 207,126 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (1,429 | ) | — | (1,429 | ) | ||||||||||||
Net (decrease) increase in cash and cash equivalents | 415 | (6,629 | ) | (73,901 | ) | — | (80,115 | ) | |||||||||||
Cash and cash equivalents, beginning of period | 49 | 8,789 | 133,576 | — | 142,414 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 464 | $ | 2,160 | $ | 59,675 | $ | — | $ | 62,299 |
Net Sales | |||
Fiscal 2012 Quarter Net Sales | $ | 825 | |
Addition of hardware and home improvement products | 285 | ||
Increase in pet supplies | 1 | ||
Decrease in electric shaving and grooming products | (1 | ) | |
Decrease in consumer batteries | (3 | ) | |
Decrease in small appliances | (4 | ) | |
Decrease in home and garden control products | (10 | ) | |
Foreign currency impact, net | (3 | ) | |
Fiscal 2013 Quarter Net Sales | $ | 1,090 |
Net Sales | |||
Fiscal 2012 Nine Months Net Sales | $ | 2,420 | |
Addition of hardware and home improvement products | 576 | ||
Increase in pet supplies | 11 | ||
Increase in consumer batteries | 1 | ||
Increase in electric personal care products | 3 | ||
Decrease in electric shaving and grooming products | (6 | ) | |
Decrease in home and garden control products | (11 | ) | |
Decrease in small appliances | (33 | ) | |
Foreign currency impact, net | (13 | ) | |
Fiscal 2013 Nine Months Net Sales | $ | 2,948 |
Fiscal Quarter | Fiscal Nine Months | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Product line net sales | |||||||||||||||
Consumer batteries | $ | 207 | $ | 211 | $ | 678 | $ | 685 | |||||||
Small appliances | 169 | 173 | 543 | 576 | |||||||||||
Pet supplies | 156 | 157 | 457 | 449 | |||||||||||
Home and garden control products | 157 | 167 | 289 | 300 | |||||||||||
Electric personal care products | 54 | 54 | 197 | 195 | |||||||||||
Electric shaving and grooming products | 62 | 63 | 208 | 215 | |||||||||||
Hardware and home improvement products | 285 | — | 576 | — | |||||||||||
Total net sales to external customers | $ | 1,090 | $ | 825 | $ | 2,948 | $ | 2,420 |
Fiscal 2013 Quarter | Global Batteries & Appliances | Global Pet Supplies | Home and Garden Business | Hardware & Home Improvement | Corporate / Unallocated Items(a) | Consolidated Spectrum Brands | |||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net income (loss), as adjusted (a) | $ | 32 | $ | 24 | $ | 43 | $ | 40 | $ | (103 | ) | $ | 36 | ||||||||||
Income tax expense | — | — | — | — | 15 | 15 | |||||||||||||||||
Interest expense | — | — | — | — | 62 | 62 | |||||||||||||||||
Acquisition and integration related charges | 1 | 1 | — | 1 | 5 | 8 | |||||||||||||||||
Restructuring and related charges | 9 | 1 | — | 2 | 1 | 13 | |||||||||||||||||
Adjusted EBIT | $ | 42 | $ | 26 | $ | 43 | $ | 43 | $ | (20 | ) | $ | 134 | ||||||||||
Depreciation and amortization (c) | 17 | 7 | 3 | 10 | 18 | 55 | |||||||||||||||||
Adjusted EBITDA | $ | 59 | $ | 33 | $ | 46 | $ | 53 | $ | (2 | ) | $ | 189 |
Fiscal 2013 Nine Months | Global Batteries & Appliances | Global Pet Supplies | Home and Garden Business | Hardware & Home Improvement | Corporate / Unallocated Items(a) | Consolidated Spectrum Brands | |||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net income (loss), as adjusted (a) | $ | 159 | $ | 51 | $ | 59 | $ | 37 | $ | (317 | ) | $ | (11 | ) | |||||||||
Pre-acquisition earnings of HHI (b) | — | — | — | 30 | — | 30 | |||||||||||||||||
Income tax expense | — | — | — | — | 55 | 55 | |||||||||||||||||
Interest expense | — | — | — | — | 185 | 185 | |||||||||||||||||
Acquisition and integration related charges | 4 | 2 | — | 4 | 30 | 40 | |||||||||||||||||
Restructuring and related charges | 12 | 9 | — | 5 | 1 | 27 | |||||||||||||||||
HHI Business inventory fair value adjustment | — | — | — | 31 | — | 31 | |||||||||||||||||
Venezuela devaluation | 2 | — | — | — | — | 2 | |||||||||||||||||
Adjusted EBIT | $ | 177 | $ | 62 | $ | 59 | $ | 107 | $ | (46 | ) | $ | 359 | ||||||||||
Depreciation and amortization (c) | 50 | 22 | 9 | 20 | 32 | 133 | |||||||||||||||||
Adjusted EBITDA | $ | 227 | $ | 84 | $ | 68 | $ | 127 | $ | (14 | ) | $ | 492 |
Fiscal 2012 Quarter | Global Batteries & Appliances | Global Pet Supplies | Home and Garden Business | Hardware & Home Improvement | Corporate / Unallocated Items(a) | Consolidated Spectrum Brands | |||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net income (loss), as adjusted (a) | $ | 41 | $ | 19 | $ | 44 | $ | — | $ | (45 | ) | $ | 59 | ||||||||||
Pre-acquisition earnings of HHI (b) | — | — | — | 52 | — | 52 | |||||||||||||||||
Income tax benefit | — | — | — | — | (5 | ) | (5 | ) | |||||||||||||||
Interest expense | — | — | — | — | 40 | 40 | |||||||||||||||||
Acquisition and integration related charges | 3 | 2 | — | — | — | 5 | |||||||||||||||||
Restructuring and related charges | 2 | 2 | — | — | — | 4 | |||||||||||||||||
Adjusted EBIT | $ | 46 | $ | 23 | $ | 44 | $ | 52 | $ | (10 | ) | $ | 155 | ||||||||||
Depreciation and amortization (c) | 16 | 7 | 3 | — | 4 | 30 | |||||||||||||||||
Adjusted EBITDA | $ | 62 | $ | 30 | $ | 47 | $ | 52 | $ | (6 | ) | $ | 185 |
Fiscal 2012 Nine Months | Global Batteries & Appliances | Global Pet Supplies | Home and Garden Business | Hardware & Home Improvement | Corporate / Unallocated Items(a) | Consolidated Spectrum Brands | |||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net income (loss), as adjusted (a) | $ | 166 | $ | 47 | $ | 59 | $ | — | $ | (229 | ) | $ | 43 | ||||||||||
Pre-acquisition earnings of HHI (b) | — | — | — | 130 | — | 130 | |||||||||||||||||
Income tax expense | — | — | — | — | 39 | 39 | |||||||||||||||||
Interest expense | — | — | — | — | 150 | 150 | |||||||||||||||||
Acquisition and integration related charges | 11 | 3 | 1 | — | 5 | 21 | |||||||||||||||||
Restructuring and related charges | 7 | 7 | 1 | — | 1 | 16 | |||||||||||||||||
Adjusted EBIT | $ | 184 | $ | 57 | $ | 61 | $ | 130 | $ | (34 | ) | $ | 399 | ||||||||||
Depreciation and amortization (c) | 46 | 20 | 9 | — | 16 | 91 | |||||||||||||||||
Adjusted EBITDA | $ | 230 | $ | 77 | $ | 70 | $ | 130 | $ | (18 | ) | $ | 490 |
(a) | It is the Company's policy to record Income tax expense and interest expense on a consolidated basis. Accordingly, such amounts are not reflected in the operating results of the operating segments and are presented within Corporate / Unallocated Items. |
(b) | The Pre-acquisition earnings of HHI do not include the TLM Taiwan business as stand alone financial data is not available for the periods periods presented. The TLM Taiwan business is not deemed material to the Company's operating results. |
(c) | Included within depreciation and amortization is amortization of unearned restricted stock compensation. |
Fiscal Quarter | Fiscal Nine Months | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(in millions) | |||||||||||||||
Net sales to external customers | $ | 492 | $ | 501 | $ | 1,626 | $ | 1,670 | |||||||
Segment profit | $ | 45 | $ | 47 | $ | 182 | $ | 186 | |||||||
Segment profit as a % of net sales | 9.1 | % | 9.4 | % | 11.2 | % | 11.1 | % | |||||||
Segment Adjusted EBITDA | $ | 59 | $ | 62 | $ | 227 | $ | 230 | |||||||
Assets as of June 30, 2013 and September 30, 2012 | $ | 2,214 | $ | 2,243 | $ | 2,214 | $ | 2,243 |
Fiscal Quarter | Fiscal Nine Months | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(in millions) | |||||||||||||||
Net sales to external customers | $ | 156 | $ | 157 | $ | 457 | $ | 449 | |||||||
Segment profit | $ | 27 | $ | 22 | $ | 63 | $ | 58 | |||||||
Segment profit as a % of net sales | 17.0 | % | 14.3 | % | 13.8 | % | 12.9 | % | |||||||
Segment Adjusted EBITDA | $ | 33 | $ | 30 | $ | 84 | $ | 77 | |||||||
Assets as of June 30, 2013 and September 30, 2012 | $ | 959 | $ | 956 | $ | 959 | $ | 956 |
Fiscal Quarter | Fiscal Nine Months | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(in millions) | |||||||||||||||
Net sales to external customers | $ | 157 | $ | 167 | $ | 289 | $ | 300 | |||||||
Segment profit | $ | 43 | $ | 44 | $ | 60 | $ | 61 | |||||||
Segment profit as a % of net sales | 27.5 | % | 26.5 | % | 20.6 | % | 20.1 | % | |||||||
Segment Adjusted EBITDA | $ | 46 | $ | 47 | $ | 68 | $ | 70 | |||||||
Assets as of June 30, 2013 and September 30, 2012 | $ | 543 | $ | 508 | $ | 543 | $ | 508 |
Fiscal Quarter | Fiscal Nine Months | ||||||
2013 | 2013 | ||||||
(in millions) | |||||||
Net sales to external customers | $ | 285 | $ | 576 | |||
Segment profit | $ | 43 | $ | 46 | |||
Segment profit as a % of net sales | 15.1 | % | 8.1 | % | |||
Segment Adjusted EBITDA | $ | 53 | $ | 127 | |||
Assets as of June 30, 2013 | $ | 1,787 | $ | 1,787 |
• | A $47 million use of cash for working capital and other items driven by an increase in accounts receivable, decrease in accrued payroll and a net increase from changes in other assets and liabilities, partially offset by a decrease in inventory; |
• | Higher cash payments for interest of $48 million driven by the financing of the HHI Business acquisition; |
• | Higher cash payments for acquisition and integration activities of $18 million; and |
• | Higher cash payments for income taxes of $5 million related to the HHI Business acquisition; |
• | Higher Adjusted EBITDA of $102 million, excluding pre-acquisition earnings of the HHI Business and; |
• | Lower cash payments for restructuring of $8 million. |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Item 6. | Exhibits |
SPECTRUM BRANDS, INC. | ||||||
By: | /s/ ANTHONY L. GENITO | |||||
Anthony L. Genito | ||||||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
Exhibit 2.1 | Acquisition Agreement, dated as of October 8, 2012 between Spectrum Brands, Inc. and Stanley Black & Decker, Inc. (filed by incorporation by reference to Exhibit 2.1 to Spectrum Brands, Inc.'s Current Report on Form 8-K filed with the SEC by Spectrum Brands, Inc. on October 12, 2012). | |
Exhibit 3.1 | Restated Certificate of Incorporation of Spectrum Brands Holdings, Inc., dated June 16, 2010 (incorporated by reference to Exhibit 3.1 to the Registration Statement on Form S-8 filed with the SEC on June 16, 2010). | |
Exhibit 3.2 | Amended and Restated Bylaws of Spectrum Brands Holdings, Inc., adopted as of June 16, 2010 (incorporated by reference to the Registration Statement on Form S-8 filed with the SEC on June 16, 2010). | |
Exhibit 4.1 | Indenture governing the 2020 Notes and the 2022 Notes, dated as of November 16, 2012, between Spectrum Brands Escrow Corp. and US Bank National Association, as trustee (filed by incorporation by reference to Exhibit 4.1 to the Current Report on Form 8-K filed with the SEC on November 21, 2012). | |
Exhibit 10.1 | Registration Rights Agreement, dated as of November 16, 2012 by and among Spectrum Brands Escrow Corp. and the investors listed on the signature pages thereto, with respect to the 2020 Notes and the 2022 Notes (filed by incorporation by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on November 21, 2012). | |
Exhibit 10.2 | Severance Agreement, dated as of November 19, 2012, by and between Spectrum Brands, Inc. and Nathan E. Fagre (filed by incorporation by reference to Exhibit 10.47 to the Annual Report on Form 10-K filed with the SEC by Spectrum Brands, Inc. on November 21, 2012). | |
Exhibit 10.3 | Separation Agreement dated December 28, 2012 (filed by incorporation by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on January 3, 2012). | |
Exhibit 10.4 | Credit Agreement dated December 17, 2012, among Spectrum Brands, Inc., Spectrum Brands Canada, Inc., SB/RH Holdings, LLC, the lenders party thereto and Deutsche Bank AG New York Branch, as administrative agent, Deutsche Bank Securities Inc and Barclays Bank PLC, as joint bookrunners and joint lead arrangers, Barclays Bank PLC, as syndication agent, and Jefferies Group, Inc., Suntrust Bank and The Bank of Tokyo-Mitsubishi UFJ, LTD., as co-documentation agents (filed by incorporation by reference to Exhibit 10.4 to the Annual Report on Form 10-Q filed with the SEC by Spectrum Brands Holdings, Inc. on February 8, 2013). | |
Exhibit 18.1 | Preferability Letter from Independent Registered Public Accounting Firm Regarding Change in Accounting Principle. * | |
Exhibit 31.1 | Certification of Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities and Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.* | |
Exhibit 31.2 | Certification of Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities and Exchange Act of 1934, as adopted pursuant to Section 302 the Sarbanes-Oxley Act of 2002.* | |
Exhibit 32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* | |
Exhibit 32.2 | Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* | |
101.INS | XBRL Instance Document** | |
101.SCH | XBRL Taxonomy Extension Schema Document** | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document** | |
101.DEF | XBRL Taxonomy Extension Definition Document** | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document** | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document** |
** | In accordance with Regulation S-T, the XBRL-related information in Exhibit 101 to this Quarterly Report on Form 10-Q shall be deemed to be “furnished” and not “filed.” |
1. | I have reviewed this quarterly report on Form 10-Q of Spectrum Brands, Inc. (the “registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ DAVID R. LUMLEY |
David R. Lumley |
Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Spectrum Brands, Inc. (the “registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ ANTHONY L. GENITO |
Anthony L. Genito |
Chief Financial Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ DAVID R. LUMLEY | |
Name: | David R. Lumley |
Title: | Chief Executive Officer |
Date: | August 8, 2013 |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ ANTHONY L. GENITO | |
Name: | Anthony L. Genito |
Title: | Chief Financial Officer |
Date: | August 8, 2013 |
Fair Value Of Financial Instruments
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS The Company’s net derivative portfolio as of June 30, 2013, contains Level 2 instruments and consists of commodity and foreign exchange contracts. The fair values of these instruments as of June 30, 2013 were as follows:
The Company’s net derivative portfolio as of September 30, 2012, contains Level 2 instruments and consists of commodity and foreign exchange contracts. The fair values of these instruments as of September 30, 2012 were as follows:
The carrying values of cash and cash equivalents, accounts and notes receivable, accounts payable and non-publicly traded debt approximate fair value. The fair values of long-term publicly traded debt are based on unadjusted quoted market prices (Level 1) and derivative financial instruments are generally based on quoted or observed market prices (Level 2). The carrying values of goodwill, intangible assets and other long-lived assets are tested annually, or more frequently if an event occurs that indicates an impairment loss may have been incurred, using fair value measurements with unobservable inputs (Level 3). The carrying amounts and fair values of the Company’s financial instruments are summarized as follows ((liability)/asset):
|
Description Of Business
|
9 Months Ended |
---|---|
Jun. 30, 2013
|
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description Of Business | DESCRIPTION OF BUSINESS Spectrum Brands, Inc., a Delaware corporation (“Spectrum Brands” or the “Company”), is a global branded consumer products company. Spectrum Brands, Inc., is a wholly owned subsidiary of Spectrum Brands Holdings, Inc. ("SB Holdings"). SB Holdings' common stock trades on the New York Stock Exchange (the “NYSE”) under the symbol “SPB.” The Company’s operations include the worldwide manufacturing and marketing of alkaline, zinc carbon and hearing aid batteries, as well as aquariums and aquatic health supplies and the designing and marketing of rechargeable batteries, battery-powered lighting products, electric shavers and accessories, grooming products and hair care appliances. The Company’s operations also include the manufacturing and marketing of specialty pet supplies. The Company also manufactures and markets herbicides, insecticides and insect repellents in North America. The Company also designs, markets and distributes a broad range of branded small appliances and personal care products. The Company’s operations utilize manufacturing and product development facilities located in the United States ("U.S."), Europe, Latin America and Asia. On December 17, 2012, the Company acquired the residential hardware and home improvement business (the “HHI Business”) from Stanley Black & Decker, Inc. (“Stanley Black & Decker”), which includes (i) the equity interests of certain subsidiaries of Stanley Black & Decker engaged in the business and (ii) certain assets of Stanley Black & Decker used or held for use in connection with the business (the “Hardware Acquisition”). The HHI Business has a broad portfolio of recognized brand names, including Kwikset, Weiser, Baldwin, National Hardware, Stanley, FANAL and Pfister, as well as patented technologies such as Smartkey, a rekeyable lockset technology, and Smart Code Home Connect. On April 8, 2013, the Company completed the Hardware Acquisition, which included the acquisition of certain assets of Tong Lung Metal Industry Co. Ltd., a Taiwan Corporation ("TLM Taiwan”), which is involved in the production of residential locksets. For information pertaining to the Hardware Acquisition, see Note 15, “Acquisitions.” The Company sells its products in approximately 140 countries through a variety of trade channels, including retailers, wholesalers and distributors, hearing aid professionals, industrial distributors and original equipment manufacturers and enjoys name recognition in its markets under the Rayovac, VARTA and Remington brands, each of which has been in existence for more than 80 years, and under the Tetra, 8-in-1, Dingo, Nature's Miracle, Spectracide, Cutter, Hot Shot, Black & Decker, George Foreman, Russell Hobbs, Farberware, Black Flag, FURminator, the previously mentioned HHI Business brands and various other brands. The Company's global branded consumer products have positions in seven major product categories: consumer batteries; small appliances; pet supplies; electric shaving and grooming; electric personal care; home and garden controls; and hardware and home improvement, which consists of the recently acquired HHI Business. The Company manages the businesses in four vertically integrated, product-focused reporting segments: (i) Global Batteries & Appliances, which consists of the Company's worldwide battery, electric shaving and grooming, electric personal care and small appliances primarily in the kitchen and home product categories (“Global Batteries & Appliances”); (ii) Global Pet Supplies, which consists of the Company's worldwide pet supplies business (“Global Pet Supplies”); (iii) Home and Garden Business, which consists of the Company's home and garden and insect control business (the “Home and Garden Business”); and (iv) Hardware & Home Improvement, which consists of the recently acquired HHI Business (“Hardware & Home Improvement”). Management reviews the performance of the Company based on these segments, which also reflect the manner in which the Company's management monitors performance and allocates resources. For information pertaining to our business segments, see Note 12, “Segment Results.” |
Condensed Consolidating Financial Statements (Notes)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Guarantor Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor Consolidating Financial Statements [Text Block] | CONSOLIDATING FINANCIAL STATEMENTS In connection with the combination with Russell Hobbs, Spectrum Brands, with its domestic subsidiaries and SB/RH Holdings, LLC as guarantors, issued the 9.5% Notes under the 2018 Indenture. (See Note 6, “Debt,” for further information on the the 9.5% Notes under the 2018 Indenture.) The following consolidating financial statements illustrate the components of the consolidated financial statements of the Company. Investments in subsidiaries are accounted for using the equity method for purposes of illustrating the consolidating presentation. Earnings of subsidiaries are therefore reflected in the Company’s and Guarantor Subsidiaries’ investment accounts and earnings. The elimination entries presented herein eliminate investments in subsidiaries and intercompany balances and transactions. Separate consolidated financial statements of the Guarantor Subsidiaries are not presented because management has determined that such financial statements would not be material to investors. SPECTRUM BRANDS, INC. AND SUBSIDIARIES Condensed Consolidating Statement of Financial Position June 30, 2013 (Unaudited) (Amounts in thousands)
SPECTRUM BRANDS, INC. AND SUBSIDIARIES Condensed Consolidating Statement of Financial Position September 30, 2012 (Unaudited) (Amounts in thousands)
SPECTRUM BRANDS, INC. AND SUBSIDIARIES Condensed Consolidating Statement of Operations Three Month Period Ended June 30, 2013 (Unaudited) (Amounts in thousands)
SPECTRUM BRANDS, INC. AND SUBSIDIARIES Condensed Consolidating Statement of Comprehensive Income Three Month Period Ended June 30, 2013 (Unaudited) (Amounts in thousands)
SPECTRUM BRANDS, INC. AND SUBSIDIARIES Condensed Consolidating Statement of Operations Three Month Period Ended July 1, 2012 (Unaudited) (Amounts in thousands)
SPECTRUM BRANDS, INC. AND SUBSIDIARIES Condensed Consolidating Statement of Comprehensive Income Three Month Period Ended July 1, 2012 (Unaudited) (Amounts in thousands)
SPECTRUM BRANDS, INC. AND SUBSIDIARIES Condensed Consolidating Statement of Operations Nine Month Period Ended June 30, 2013 (Unaudited) (Amounts in thousands)
SPECTRUM BRANDS, INC. AND SUBSIDIARIES Condensed Consolidating Statement of Comprehensive Income Nine Month Period Ended June 30, 2013 (Unaudited) (Amounts in thousands)
SPECTRUM BRANDS, INC. AND SUBSIDIARIES Condensed Consolidating Statement of Operations Nine Month Period Ended July 1, 2012 (Unaudited) (Amounts in thousands)
SPECTRUM BRANDS, INC. AND SUBSIDIARIES Condensed Consolidating Statement of Comprehensive Income Nine Month Period Ended July 1, 2012 (Unaudited) (Amounts in thousands)
SPECTRUM BRANDS, INC. AND SUBSIDIARIES Condensed Consolidating Statement of Cash Flows Nine Month Period Ended June 30, 2013 (Unaudited) (Amounts in thousands)
SPECTRUM BRANDS, INC. AND SUBSIDIARIES Condensed Consolidating Statement of Cash Flows Nine Month Period Ended July 1, 2012 (Unaudited) (Amounts in thousands)
|
Employee Benefit Plans Summary (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jul. 01, 2012
|
Jun. 30, 2013
|
Jul. 01, 2012
|
|
Defined Contribution Pension [Member]
|
||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 2,851 | $ 545 | $ 5,665 | $ 1,694 |
Pension Plans, Defined Benefit [Member]
|
||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 867 | 578 | 2,416 | 1,700 |
Interest cost | 2,498 | 2,552 | 7,326 | 7,030 |
Expected return on assets | (2,196) | (2,051) | (6,589) | (5,378) |
Recognized net actuarial loss | 519 | 242 | 1,557 | 508 |
Employee contributions | (46) | (46) | (137) | (139) |
Net periodic benefit cost | 1,642 | 1,275 | 4,573 | 3,721 |
Contributions made during period | $ 1,188 | $ 1,289 | $ 2,890 | $ 3,767 |
Employee Benefit Plans
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Pension Benefits The Company has various defined benefit pension plans covering some of its employees in the U.S. and certain employees in other countries, including the United Kingdom, the Netherlands, Germany, Guatemala, Brazil, Mexico and Taiwan. These pension plans generally provide benefits of stated amounts for each year of service. The Company’s results of operations for the three and nine month periods ended June 30, 2013 and July 1, 2012 reflect the following pension and deferred compensation benefit costs:
The Company funds its U.S. pension plans in accordance with the Internal Revenue Service (“IRS”) defined guidelines and, where applicable, in amounts sufficient to satisfy the minimum funding requirements of applicable laws. Additionally, in compliance with the Company’s funding policy, annual contributions to non-U.S. defined benefit plans are equal to the actuarial recommendations or statutory requirements in the respective countries. The Company’s contributions to its pension and deferred compensation plans for the three and nine month periods ended June 30, 2013 and July 1, 2012 were as follows:
The Company sponsors a defined contribution pension plan for its domestic salaried employees, which allows participants to make contributions by salary reduction pursuant to Section 401(k) of the Internal Revenue Code. The Company also sponsors defined contribution pension plans for employees of certain foreign subsidiaries. Company contributions charged to operations, including discretionary amounts, for the three and nine month periods ended June 30, 2013 were $2,851 and $5,665, respectively. Company contributions charged to operations, including discretionary amounts, for the three and nine month periods ended July 1, 2012 were $545 and $1,694, respectively. |
Goodwill And Intangible Assets Schedule of Goodwill (Details) (USD $)
In Thousands, unless otherwise specified |
9 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Sep. 30, 2012
|
|
Goodwill [Line Items] | ||
Goodwill | $ 1,470,180 | $ 694,245 |
Additions | 787,687 | |
Effect of translation | (11,752) | |
Global Pet Supplies [Member]
|
||
Goodwill [Line Items] | ||
Goodwill | 237,429 | 237,932 |
Additions | 0 | |
Effect of translation | (503) | |
Home and Garden Business [Member]
|
||
Goodwill [Line Items] | ||
Goodwill | 188,936 | 187,757 |
Additions | 1,179 | |
Effect of translation | 0 | |
Global Batteries & Appliances [Member]
|
||
Goodwill [Line Items] | ||
Goodwill | 328,742 | 268,556 |
Additions | 65,618 | |
Effect of translation | (5,432) | |
Hardware & Home Improvement [Member]
|
||
Goodwill [Line Items] | ||
Goodwill | 715,073 | 0 |
Additions | 720,890 | |
Effect of translation | $ (5,817) |
Income Taxes Disclosures (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2013
|
Jul. 01, 2012
|
Jun. 30, 2013
|
Jul. 01, 2012
|
Sep. 30, 2012
|
|
Income Tax Disclosure [Abstract] | |||||
Effective Income Tax Rate, Continuing Operations | 29.00% | (10.00%) | 125.00% | 47.00% | |
Valuation Allowance, Deferred Tax Asset, Change in Amount | $ 49,291 | $ 13,915 | |||
Unrecognized Tax Benefits | 8,968 | 8,968 | 5,877 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 3,787 | $ 3,787 | $ 3,564 |
Condensed Consolidating Financial Statements (Tables)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Guarantor Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Condensed Financial Statements [Table Text Block] | SPECTRUM BRANDS, INC. AND SUBSIDIARIES Condensed Consolidating Statement of Financial Position June 30, 2013 (Unaudited) (Amounts in thousands)
SPECTRUM BRANDS, INC. AND SUBSIDIARIES Condensed Consolidating Statement of Financial Position September 30, 2012 (Unaudited) (Amounts in thousands)
SPECTRUM BRANDS, INC. AND SUBSIDIARIES Condensed Consolidating Statement of Operations Three Month Period Ended June 30, 2013 (Unaudited) (Amounts in thousands)
SPECTRUM BRANDS, INC. AND SUBSIDIARIES Condensed Consolidating Statement of Comprehensive Income Three Month Period Ended June 30, 2013 (Unaudited) (Amounts in thousands)
SPECTRUM BRANDS, INC. AND SUBSIDIARIES Condensed Consolidating Statement of Operations Three Month Period Ended July 1, 2012 (Unaudited) (Amounts in thousands)
SPECTRUM BRANDS, INC. AND SUBSIDIARIES Condensed Consolidating Statement of Comprehensive Income Three Month Period Ended July 1, 2012 (Unaudited) (Amounts in thousands)
SPECTRUM BRANDS, INC. AND SUBSIDIARIES Condensed Consolidating Statement of Operations Nine Month Period Ended June 30, 2013 (Unaudited) (Amounts in thousands)
SPECTRUM BRANDS, INC. AND SUBSIDIARIES Condensed Consolidating Statement of Comprehensive Income Nine Month Period Ended June 30, 2013 (Unaudited) (Amounts in thousands)
SPECTRUM BRANDS, INC. AND SUBSIDIARIES Condensed Consolidating Statement of Operations Nine Month Period Ended July 1, 2012 (Unaudited) (Amounts in thousands)
SPECTRUM BRANDS, INC. AND SUBSIDIARIES Condensed Consolidating Statement of Comprehensive Income Nine Month Period Ended July 1, 2012 (Unaudited) (Amounts in thousands)
SPECTRUM BRANDS, INC. AND SUBSIDIARIES Condensed Consolidating Statement of Cash Flows Nine Month Period Ended June 30, 2013 (Unaudited) (Amounts in thousands)
SPECTRUM BRANDS, INC. AND SUBSIDIARIES Condensed Consolidating Statement of Cash Flows Nine Month Period Ended July 1, 2012 (Unaudited) (Amounts in thousands)
|
Significant Accounting Policies (Tables)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Change in Accounting Principle: During the quarter ended June 30, 2013, the Company made a change in accounting principle to present tax withholdings for share-based payment awards paid to taxing authorities on behalf of an employee as a financing activity within its Condensed Consolidated Statement of Cash Flows. Such amounts were previously presented within operating activities in the Condensed Consolidated Statement of Cash Flows. The Company believes this change is preferable as the predominant characteristic of the transaction is a financing activity. The Company has reclassified the following amounts within its previously reported Condensed Consolidated Statements of Cash Flows on a retrospective basis to reflect this change in accounting principle:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition, Integration, Restructuring and Other Related Costs [Text Block] | The following table summarizes acquisition and integration related charges incurred by the Company during the three and nine month periods ended June 30, 2013 and July 1, 2012:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | A summary of the activity in the Company’s non-vested restricted stock awards and restricted stock units during the nine months ended June 30, 2013 is as follows:
|
Derivative Financial Instruments Policies (Policies)
|
9 Months Ended |
---|---|
Jun. 30, 2013
|
|
Accounting Policies [Abstract] | |
Derivatives, Policy [Policy Text Block] | Other Changes in Fair Value of Derivative Contracts For derivative instruments that are used to economically hedge the fair value of the Company’s third party and intercompany foreign currency payments, commodity purchases and interest rate payments, the gain (loss) associated with the derivative contract is recognized in earnings in the period of change. DERIVATIVE FINANCIAL INSTRUMENTS Derivative financial instruments are used by the Company principally in the management of its interest rate, foreign currency exchange rate and raw material price exposures. The Company does not hold or issue derivative financial instruments for trading purposes. Derivative instruments are reported at fair value in the Condensed Consolidated Statements of Financial Position (unaudited). When hedge accounting is elected at inception, the Company formally designates the financial instrument as a hedge of a specific underlying exposure and documents both the risk management objectives and strategies for undertaking the hedge. The Company formally assesses both at the inception and at least quarterly thereafter, whether the financial instruments that are used in hedging transactions are effective at offsetting changes in the forecasted cash flows of the related underlying exposure. Because of the high degree of effectiveness between the hedging instrument and the underlying exposure being hedged, fluctuations in the value of the derivative instruments are generally offset by changes in the forecasted cash flows of the underlying exposures being hedged. Any ineffective portion of a financial instrument’s change in fair value is immediately recognized in earnings. For derivatives that are not designated as cash flow hedges, or do not qualify for hedge accounting treatment, the change in the fair value is also immediately recognized in earnings. Cash Flow Hedges When appropriate, the Company uses interest rate swaps to manage its interest rate risk. The swaps are designated as cash flow hedges with the changes in fair value recorded in AOCI and as a derivative hedge asset or liability, as applicable. The swaps settle periodically in arrears with the related amounts for the current settlement period payable to, or receivable from, the counter-parties included in accrued liabilities or receivables, respectively, and recognized in earnings as an adjustment to interest expense from the underlying debt to which the swap is designated. At June 30, 2013, the Company did not have any interest rate swaps outstanding. The Company periodically enters into forward foreign exchange contracts to hedge the risk from forecasted foreign currency denominated third party and intercompany sales or payments. These obligations generally require the Company to exchange foreign currencies for U.S. Dollars, Euros, Pounds Sterling, Australian Dollars, Brazilian Reals, Mexican Pesos, Canadian Dollars or Japanese Yen. These foreign exchange contracts are cash flow hedges of fluctuating foreign exchange related to sales of product or raw material purchases. Until the sale or purchase is recognized, the fair value of the related hedge is recorded in AOCI and as a derivative hedge asset or liability, as applicable. At the time the sale or purchase is recognized, the fair value of the related hedge is reclassified as an adjustment to Net sales or purchase price variance in Cost of goods sold. At June 30, 2013, the Company had a series of foreign exchange derivative contracts outstanding through September 2014 with a contract value of $228,419. The derivative net gain on these contracts recorded in AOCI by the Company at June 30, 2013 was $4,138, net of tax expense of $1,541. At June 30, 2013, the portion of derivative net gain estimated to be reclassified from AOCI into earnings by the Company over the next 12 months is $3,697, net of tax. The Company is exposed to risk from fluctuating prices for raw materials, specifically zinc and brass used in its manufacturing processes. The Company hedges a portion of the risk associated with the purchase of these materials through the use of commodity swaps. The hedge contracts are designated as cash flow hedges with the fair value changes recorded in AOCI and as a hedge asset or liability, as applicable. The unrecognized changes in fair value of the hedge contracts are reclassified from AOCI into earnings when the hedged purchase of raw materials also affects earnings. The swaps effectively fix the floating price on a specified quantity of raw materials through a specified date. At June 30, 2013, the Company had a series of zinc swap contracts outstanding through September 2014 for 10 tons with a contract value of $20,372. At June 30, 2013, the Company had a series of brass swap contracts outstanding through September 2014 for 1 ton with a contract value of $5,609. The derivative net loss on these contracts recorded in AOCI by the Company at June 30, 2013 was $1,068, net of tax benefit of $127. At June 30, 2013, the portion of derivative net loss estimated to be reclassified from AOCI into earnings by the Company over the next 12 months is $1,010, net of tax. Derivative Contracts The Company periodically enters into forward and swap foreign exchange contracts to economically hedge the risk from third party and intercompany payments resulting from existing obligations. These obligations generally require the Company to exchange foreign currencies for U.S. Dollars, Canadian Dollars, Euros or Australian Dollars. These foreign exchange contracts are fair value hedges of a related liability or asset recorded in the accompanying Condensed Consolidated Statements of Financial Position (Unaudited). The gain or loss on the derivative hedge contracts is recorded in earnings as an offset to the change in value of the related liability or asset at each period end. At June 30, 2013 and September 30, 2012, the Company had $112,737 and $172,581, respectively, of notional value for such foreign exchange derivative contracts outstanding. Changes in AOCI from Derivative Instruments For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of Accumulated Other Comprehensive Income ("AOCI") and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on derivatives representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. |
Inventories Balance By Type (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Sep. 30, 2012
|
---|---|---|
Inventory, Net, Items Net of Reserve Alternative [Abstract] | ||
Raw materials | $ 108,284 | $ 58,515 |
Work-in-process | 53,461 | 23,434 |
Finished goods | 545,595 | 370,684 |
Inventory, Net | $ 707,340 | $ 452,633 |
Employee Benefit Plans (Tables)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs [Table Text Block] | The Company’s results of operations for the three and nine month periods ended June 30, 2013 and July 1, 2012 reflect the following pension and deferred compensation benefit costs:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Contributions [Table Text Block] | The Company’s contributions to its pension and deferred compensation plans for the three and nine month periods ended June 30, 2013 and July 1, 2012 were as follows:
|
Significant Accounting Policies Shipping and Handling Costs (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jul. 01, 2012
|
Jun. 30, 2013
|
Jul. 01, 2012
|
|
Accounting Policies [Abstract] | ||||
Shipping and Handling Costs | $ 67,023 | $ 48,797 | $ 183,050 | $ 148,383 |
Debt (Tables)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt [Table Text Block] | Debt consists of the following:
|
"DW("LYXI(.XMTG&MSL*6#,;E+U,S65'@3"U[;'[P[B68_D?)NG)[DSC4:$ M-HG0"A4=MT+XZEF$A"&%NR[Y2/L>Q;"2&(8[L5Z_>O',\1Q)#+?_O0*ES\W8 MT990^9VP"&:V"2Y65V+VDK&ZIJ28F'+]ODE)93?=U(-DMMWNZU[>M3\*>HN" MQCYNS[+$GLY>8<35IDT8`(\@;IP'J$084BYQS&\%%,A*`FGH6TA085,_1)6B MZ_EV(T@;!JG0:W9TFPI%!:NCN/'7:Z;W41!I0=Q03D.XU^WJ:X_I;I&V&5PH M!297_(W\+62=$379#NT9O!X73'3?DI/LIKJ`]<.2T$SS$:MUL!K':Y$*M:YE M$UBRNG:/]JO$USAJFN\'!&W+H%5W>]I=HUKDV9;8L+),6^>B8*JRDZKEHBG; M+J_.">=9$A\>2%#)SB%M/"*51JH2:R_@<@@E@&9VGMI4?4GHF18R^1QSO\S; MN%I(MQT4BSS!,LV`M7C[$LFRP=\E"<.X"%X/HBY,V&$^+\?7]*ZBO3SWHR3V M(PEG\B$6Z0"S'GN'_TZ'T"]$@HFH&[I7%X/X?)3`]G,8>9Y'(:PBA%L]MI2$ MF5[5#W3DKT(9S_S.3*5B1%%8*DOY%:,,M\3DQH*#Q6JA<0W`+>.#D>IV6<1P MM4KBJ%;,6B)%8.!:#AE4-WHMA1@PA"VA)-PK5K%($%B74B(Y3/*CLB_T;3"$ MW8$,)NG5&:VQ^[% ML,IU`>*U%EZNCOIQD+U=R)ZD\",O?)0MD`/J3<9.=<%5%(`<3P_:S5&6G 02G#"ZD3"\&1GJ5EL,P)4&*!6CPR2[,VM%"*(MUFL M!D:++$>8EH:I%1#&7"DFFD].IIF(21H3LR&KU!Z,I-&4'A>FBFQ,G7@3C(^U MWQN X2'B GB`6"NX3(L>H^+*O;)33C,LG1T4K`,\=J MA.CD[(^S/YZO]M#\:WKQ[*CVL:`7]26?CLYJV_/B#Q_HCWOH$G8=&Y5Z6W,E M&/7CJ=EK1@.:[(UDJ0"UJ> ZN* @4&`F6B'0*\_85>=#/>)P5'!RX?T[HHJ. M.34E?I>,>#]O&+'\:X * M@W,9>6 APF)64C M`K(L().5ADU>_+'3X#X=4#\BC+TU@H"8+V\)R[C:U>'89)W@U1R"Z*71NX(. M2-WQFS7:=#,DR18I">_&^9<_:=B;./E)Z"$$A%0FG[,D2[.IRS>SG.EC)_-6 MTQ@/EW2KZR>2M!V9X\,5W^S&=0<^G*"_R(F(^#X1=W4=QYTB7LIE($N.N*2# M>`V@2937I.IG:H(M"(2.\-[B=P?QK$=ROLW34U^91B-"FT1HA7G>6R%\]2Q" MPI#"74\$IWV/8EA)#,/UL*]?O9[I!^=(8K@(^Q4H?6[&NN*$RN^$13"S6'NQ MV6:SHI?5,\W%Q)3K]TU**KOIIAXDL^UV/QO^KOU1T%L4-/9Q>Y8E]G3V"B.N M06O"`'@$<>,\0"7"D'*)8WXKH$#2`KFAG(9PK]O7;_!0-QYM,[A0"DQ&XQOY M6\@Z(VJR=-HS>#TNF.B^)2?937 M[5>)KW'?/M\/"-HF0'N6Q(<'$MA:B;\676GC$:DT4I7XF@,_L"@!-+B9VO91 M+/($#FSGYK!(JKQAP?ZU8>^6"2@)=S9 ?F9J5&,*`I+92F_8I3AEIC<6,(`5Q4H%3X8J6Z7 M10Q7JR2.:L6L)5($!J[ED$%UH]=2B`%#V!)*PKV-&RT21,GVCZRV'";Y42>V MH+1#!I/TZOYWPK0>_Q8PIMM2OU*^$?D3Y@L! V1T+W@W1!D M8!:W,I^6CP=!#R($]>GL\R]7$9S63FMV R+8302D(RJ?3H0-/W08E M;2>"D@:E4#]:)ZIWP\3+S,>?MK)3K*_*-!UQ6@NGX1=B]4A*X-[;+:'\7M@> MNQ?#*M<%B-=:>+DZZL=!]G8A>Y+"C[SP4;9`#J@W&3N9K7VC`.1X>M!NCK+L M3`9/ R8$'-]Y9$9"9#-',*4ZR,I,+RC`7L4EC4^7Z>RQ\WRM2SE2M8[GX M+N%QLM8;BZSW`))[%=)8FKQ+B!RK*\:"WEU",R[0'AVM!#QSK$:(YD+4\H`3 M?<-QM_4=./PG`D;NWLPO\4ZR]*DC^$R;FW18N?8B.`: ] M`@FX,M&.R;?M(E_EQ-N..,>D6TGA=CKA5A*X,=FV"MP/@E BZG#S; M"[B8*ML4MI@8VQ;`F`8K( &+ MJ:EY^(ZHO/#_CE1HC%4W0M9[A'>AP2\\3T0\C/>MHMRC?08S@)M5^X>=W^0& M=G([0JF0(R9DYW@"87L'VPN1_LR[[PED1\C`+-5_J>-8OZDB=?(7$/E=^]7Z M#3!F[$W>2\L9C.BLALYIU=!Y;S"BDT8G+QUYR8CW\X81RVG)S1"F;$1`B@!R M$\EX>1$A'28D;20B4@01ZV?C<()L#Y",KS*Q:X.;7=#B(&(VS!H(9C82KDOP M:7A#/,JTUY"RU;(%[ST]'-N1E1JWQ8=4XO`;!28;"F@>K2/[]D5%5"@`:8FYN:W``JCE,*8="`F MBS5SU3?R2H,H0`'9(:`BSS9N[,DOS[0VBM4ZL>I?0K%61JS3K8UBW9]8[ZEG MFHMW+[H2XJD=''#N4H)S_8^BV)\HGK0%^E'\9_!Z7##1Q33$+C4QS_THB?U) MXED2'QY(8&LML*522+L=)5`>"6#FP6JI8+JA>K+$'(/SLL3$PN9EV>`^=#!M M;X=*"S96*;*!V)=:+UKL6JLF6NQIRR-:3./O7XJ8RK=-'#@(=4=$.`2MN&!Q M`%HMP>+PLSR"G3=CBQULZ?2ZZN0Z]J_5EBMVKY62*_:NY9$KUM[L37Y8?U-N M*>``TWK)X,"RFO+$`64EY(D#R57EV8QT4S)V)]IMW5:R"RXORS+/6$2F"#*6 MKSB_%"FX"/SF`%FI\-;<9Y*.2$Y"WE;YW4(%M>99LMV.$MBU!!8E4E$(6Q3" MNJE1E,,R `O,)H./'=T4=$#]B##VU@@"_322 M$I9QM:O#H-$)JSH$T4NC5[6%$'$YPEV@\R^N&S?27C3GN`M,AIF(R7M,.B"U MC^HB,%LR)9LV26DRM,8#?]*P-WF-/PGM:0BIC(]=`M=##S/&,(NR/W8R;S7- MW949J9CC/)2T'9GC3TF#V@[AUGTXH7J1$Q'Q?2(^;(HG1K@:MM3P'HCXTH@O M@O-3*,1H4TB MM,)^L;="^.I9A(0AA1M*!"V]H6S:]RB&E<1P(R30+K]^]>*=T>9(X@[\K@Y: MKT#I<]^KX890^9VP"(;GK2"HQ[`'\MKF'6N+B2G7[YN45';333U(9MOM7-3O MVQ\%O45!8Q^W9UEB3V>O,.*][)LP`!Y!W#@/4(DPI%SBF-\**)"T0*I=\H2E M1Z7&:MGO6B;OW]&+830+VTH\/OFA6R;:A%V2,(QG<2^X?]'7;6:V6$66R_:A M2I'?RFWZQ.#%;8]"MDS(3Q"V(M.(J-YJJ/==@Z-DK9'L'9'^"Y%PIX?PC:`O MQ2`^'X7KMG!SFQWENWOY3G^,B$-G>S1 <&HS45IXUBPVJK& M06%9!8V)5 ',P-LB'>!(>^_P.YD(LD("F(W9N!!N]=A2$F9Z53^@G*I0QNMU MS2R9B!%%8:DLY5>,,MP2TZ/^)?U7WG5BP=GEUE?--!GQV1P^&*ENET4,5ZLD MCFK%K"52!`:NY9!!=:/74H@!0]@22D+_A.ZG;W73`!^=]?_L75MOH]BR_BNC M?H\VZP(+6N>,Q+4[4B:=B;N/MLY+B]AK$O9@\`& W50`2XDR$V*Y\I,/9Z;#JCR:S&"Z#)>P9:+!JKZXI'>%_#/Q' M,@S!EN!2?O.3/^5V(F`O<^\O(KRC4FQC=H="-W'TF,EDFG_V-__D9)D$W<:9 M3#4F5& ?MND@H@Z^=:U2/_VZU.IG MT"H">!/`!]4+MI\^>6'\U]K'+[N*U,-R\EK1$4X?@M/K%_+L5X)^\8/H)NYZ MC_(P6.U4`<+K0_#J:W<#FPFG!=E=$D_FX^Q;,I+) U8AV'*7SJ4S*,8AN MXZA.SD61N$50A,K>4'%#.HO21Q/X;]#@=%[DB.8]@;3:.J'85^&)K 5.9V'\(N5(/LLDU^A&$VOM.GE^N3&4F%_Z7N:V`OM=1T$6 M%,\*=!M][RAOE7=OT5Z3#:]:`[R=3MQI`23&I8CQNLU\7U1K?AC\XZ_;I^,. MNE,4V=,62)9CR5)T*]9.QC!R`$>VJ0_C"%(#`TF;2(*1I`FZ##(`H,^]+(CP M8=23(_*0E>#SJ#V@2&\>2>T@+_"IU-:0H8=/X76*$/@@7LM(T;-G\3I#!GP< MKR$2#*GI@GV.]@$+B]4SHA3+UH'19FCI2?MX@HG*AXGQ]2GH?:E9D1$!LA]` MWMM][!E6/KI'.#S8##FOQ!SNHI#JS:8!MNK/"9Y>OOT17[MX`2#U;[<&]TC. M":*>M0^P5#\G:,I7-BZ/#@(\6Z1&$&T%4?&]W&]_C+)X_.<:@(KR-AAG "] >FCK&OF&:.#>6K:O)EV:S_+#?!1Z]"1E_: N>_^`_A MYL/C#BS@N7CRZ#K*9_5SZ>^#],^-)&\ZC2>@`LB`LL0?9QL7>?U(BR/3X#'J M^6=LMNE[A;M:A;\'P$.6L,MF;[/56J,UN9!ZN[?D(S[]I.+K!VS 1.TR$MD9:>'R3_XX=SB;P<)"_K[3]@8A;/D)II*KL^FOT^%RJBHME7 MNFBV6BEI9KVL&`<&]Y/QT\N-?)9AO5>^CF;S+"U.(`C'/M0O^R&AQD%7H8!T M;3%=._YU>:1K R*4!CBV(DP( 7!C@6[86)['F2#R`.:/^R M1F($044EV,!I'PRQCX.$Q';.`&B)79TAD1/G+SO)2AR];`<=;P+_(0B#K+-/ M>1[(A8J\"(`-A6#MTC8(8N6"9/QXW8*L:G7A@=!NH"3'W>&!L`5WK)'$@]\! M1Q+CKGR/23R,77XD,4X>M)7$V+P9-%VQA=-18@YREPN9B7M=QU(3^T9M(!DV M:KH!=>RNM`+JV,XX/=2Q!]$*J/>^Z'?D0[;*+#>J[%F0^>&-]%/Y[2$,'KO\ M\855/KTI[]NR $'*BIHR!.;N.LSPZ^(N0@3?TC M2C !E&-ONJOX[VB%D-T4\4(T<,@*E2$YHF@N51M?R&)&T:X6;,/ M3((HR.1-\"PGUQ' ^!-YZT^[ MWE(X"B6;PO<7&D.:U<3!Q$-,WZ]I0!Q]6S?^O H4U/>T!8*^&)98.QG=^@%8WZ8^].L]@C@Z]A:!'3W[X!TR^D!T7>@M]@/( M*/,SF:_9FJ=!)--TM!`AW0"*Y6<9W$RFX/S-&2@A3]P[CHZ=LK]%R2[A$1IW M,AO-"JOI[,D?B[.[ST4=LH]:$"`0L!1?@'] MR&AY5O_AL%WJH8*AW!J,DUF *6BP89W)2'.L)##;%??N<68V\"(!2(3^@R$[O1S^& M!H1UN?L%"/8[^?KUVAS_WSQ(@[R3LGK5PJN[?'-LE3`^!?U($[<(^9H@;DIY M$=/G_T2+3?^A2<2;8)R;)'HT'Q,I>Y!M-`NH0^Y\U##D5OTCU)N&^AV$'5C5 M9#71CD@_(]*WJ1^!WC30^S)=WC&`MV*NO3/`+JN`$01`'U94_N8ND6$P#>"/ M+_G0\&*>.'/DN+@`4W(Y$=C'`;M6ZXO[[J]V!':3P/XM?SJ3D7PEB.HSH;JB M
T-5SNJ'WXZ%E7U@],-K9IN.*WY:ZOMU8AKE,9A,"E" MBKL(,AW^BD)M];P:<-TIZV4,?\)XL=/P7^9^`O>*D]'\(0TF@9]T]C&8G4;? M(>>P#'X;1T.Q^6Y1AV7V.\@9H\R.IS,_ZNBHS4Y;U\@W1`/WUK)]-6F9@;_W M*3=S/([G49;>^2_^0[CY[J:]/IT+[)C&$U`!?LUZCP^_U2J\R4;/?I_,W6*T M)A?2E;=%]HB*^'GYSA*R-=^P1EJVDY;]>ITL\K*S+]AM"S&+]ZKUX7L->WXM M^,+?9FBMV;%::1'PL%)!"C:3#N&GGCI!S[/E1]W^\!52]S#J=GUD$:G;,'4O M-TZ)U#V,NET?T$3J-DS=R\V/#HJZ6+D.E:18OS9%1RPZ+\PLK/):#W`LS2X- M<*R%3@IP+&`N#7"L&`H3V?,D'U( S?3#$C4\D)+9S!D!+ M[.H,B9PXH]E)5N)X9COH>!/X#T$89)U]$O1`+E3D10!L**21V@51U-+B`^'\ MH5( ^ M`^?(AVR566Y4V;,@\\,;Z:?RVT,8/';Y@PNK?'I3WK=EY0Z!!PF!@J3Y\9$< MSY,>#%_M,O]680=I^GOY'(?/4,+9B9P$F>>/ /F4RF^:'O+S-9_##_ MQEJA-(T)U9E+JE"EOR"I44^314F=AA>*M7,4+T,(AJ]%5_'>\5M1BBFRI& MB!X&4:$B-$\$S:5J^PS)Y7Z@]7+K9Z#J`EWCXLFY\ &37*??3 MKTOM?@;MXB14_W=UMY`L=^%6XJ ?(3'6I";IUD\E Y1H*W.DLC%^D'$'BG>2S_ANU M]=IU[D(_*I/2+V'\X(?YI>_E!,X`E5^#*PZ*XK3;8'I'>2M4;=%>DQ5VK0$6 M>?$>%D"`?Q3@[M\S,(F\+WR*'P;_^.MZ[GCZU"FH[VD+!'WQ#,3:R>C6#\#Z M-O6A7^\1Q-&QMPCLZ-D'[Y#1!Z+K0F^Q'T!&F9_)?,W6/`TBF::CA0CI!E`L M/\O@9C(%YV_.0`EYXMYQ=.R4_2U*=@F/T+B3V6B>:V4P>*A(/&00?/63R5]^ M(K_&4WD]G27Q "5#IZ7!X=!`BV2#T`,!0S$M_^&&7Q>'T"MZC%@G$F M)\6QGL!@4]RWKX^ID13 M+5<-TIA3(C[_G'7OE.)J- 3"**PWWO9?U%ACU M5WQS.T=&\32(=M_P/;-MWK%ZT>71-W)7M;>DH#D>QW.(PG?^B_\0RM?/RO[R MBNA[^"G]'?^:=?)G(<3/TP_>]/5^Q3H73/'V=7BN-XQ-0-RW!4CSA<<.&J MCNUJNF[J5-$^_9+?MKA487Y&584R<$/_]:_=JSAJI>!YMZZ4V9;I*=0P7-VU M!/4TG=G+E=HV%YLKY52HS#CA2G].9/#S1C[ZH5OXJ[6H\&7N)^!^XF0T?TB# M2>`GJS[25EO8CF)I'C%4D[B<>(9GDX6$ALM ZK#N6Y;S/*<5R$Y_)EM"GD9Z6[CZ!@+4D "H$*<2#!Q:8X)1"_3/=-LFAF80G7*3:R4>;>IM"B8,E=)+ M"78,)CTA!-$\E8%7<6S=-A7E%9.F[EA:Q7)$$8JF7DK"(XEG4(MJ%EA&8YHI M#-MT8EJVZX+UF+"IJYJ6UXIA:<9E9SE(JMOS)6"7):FJIP(V[0UPW-<5U]*"ZE* M15H#[L]WDO!24A\7^SG3B6O;ADX]U74LFZO+V&\X1H6<3#&8WDKICW5/)@.? MJGL&I'<:535+AP1HJ0%N57.$*\)4IHN=U<2I='`J%PU)A*-[KB9LPAE1/8N8 MRQR>FPJW:G3`5$)VIDJ7TL$Q+!"&*5S;4FWJ"$@9+>XJ99XH3*OBMQDE-'?; M%Y%^>Y%"!>.:9KJ".([0!7<9755BAQ0IE[+=D6$7*A=3UU0HTA054F$7\JDR MC[)M5:\4,`K5+A)UFRP!;,($98;(955U#]@(Z?(RK7+4"F<-@VF-Q:U[.9;! M<_ZC6YD=A56/`E(573,@S%!55
9G5K^<"J=V5&W/0L MUR1`,VX3#\XU#7NI<^KJE55S83"EWDLVO^K&D,4=#1R<0[EFJ%!F.EPPMI)2 ML2M2$F'4`^O,0AX;_J`@,33N0-'E$EN!HL3TQ!*,CL(J==CE)3W&2W+/YB[D M](!9$\*#SB&(E4'>L'FUI`8GV0J['AD6-(]!:@]EEZ/JJFU281!U*;!FJF[5 MQQ"NU/<0&A;X%#F,X>DZ>%%!%&(QT_$T2RR#(-<]I^*;((75ZUM"9Q;V6.LR M1X `]S$TJEC4+@5V1<6L#4FZGON <\Q-2[Z]/::YD+I:^>I=A0AJ&Y:Y1"CG1B6.,L;K M-_0N9+5#W(_J.:!W5;,=HC/%4W5=-9?-$46Q*\T1"J45:96T1W>M30[HA`J+ M&@X@5'6%6.[XN1!)*L7T%63Z1'LOH#8J^HD"JVES3].)Z7JF05SB65PK]SHI MK^:)#%0DSLK.)@.L3CUFN8;);:JHA)N$4K+TP@;U*NU?"CHX+Y]/%6EMU39L MC;FZYU(H?:`@T,URB\TP*T,45T3-VTOOI5!GE?VHQ%%XBF>HD$@I7!&>$,PL M&_ZV564V)"+DO-%G5^.$6)IPN`HIK^;JS.8""KIRB\FS*SN_L/3W\L%WUI[, M_="+$S=Z#I(XR@??_/`F3M/\]:-!]"BC\<$1U%,]E1/NZ195-!N2("_/\4R= M&$Q7:"4!4`FMU*%[K:I&EOQ]8N-X*K_[?Q^W.Z9J5&6&[D#<)[I*/(>(,B-7 M':-255)#K6Z8U*_CV.7NP@LGPE*%*B"4<8-15R\'D`QN,U'UY@H5E2C6[')/ ME%:RW"0&%P3J(M5R!"-&V5)T.*]4#A32M0JMSROI(8'* 5[;C*0-,9U/40F1S3%=QT6 ?\3$7G>0EHN =QDB(/#.8JKL),2^-4MVS"R@DE MP=0*&YG"E!,CMLFTT?`LH9B*Q]6\=6R[AB+*9JICVI4=PZMJA_R\PATUA`7! MS5(5!BZ'F`S<#7?+#%$HU19;=:[SO#(>2T<(V]QR/<<2&J. SY"!+Y%/^`$/^RO?\QWGR L[+M2K8<;D`TL#3352U;,QT#$O2E;(92 M#0B0G;'JQOQ%96O!-SZV#UDZQ+,-S_'`BW$+=.N291YN$;>2REX1I5K^=4BY M)_SNQ-8F+Q6:"^&/ZHI*5&XQASL+%>N&Y7F58I,3UC(--Q8Q-:91KEF`-PX1 M1;4]RI?!Q'*\ROY4&ZE\@CQ)$`TJ8*CJJ2J8+83.E++#FO?#J]Y;9:1=WOLT M(VFJH+H*^14Q= GJGJHRG7;\[AIJX9)52"+4X[YNY9924V`7K1)B$P@ MS2U>]';G!U!`V?XLR/)W`T("'!4/9Q]4!3F$4 ];FQHTC M_\J4XJ1VJR@9[X=4OBI@`&PV=UG[K/5=W4>(!"78(,``H+3*K[_N'KQ(D%R) M!+GBFDXY%DE@IJ>GW]/=PQU':])?5*.?#J+JMKV:#_E5D/9>PE9G1P;H7 `/[_ M/GM;""IPN:0Y)@C@P-(,7?>:D(^KR7V5W R/5M6 M9573#;<)Y9B6WN,#75E-_M\1[-6+35Z+;\Y5P[!-,`8"W?-4^%^;\66O86#= MU"5E"^2K\.P%^U>0KAN.HH%YJYB.I[A`ZJ[31'I!6/=H!:EI&[$,"KO`^V!M MUS8GDI@R]U7%!K/.<%5',66K=K\5D,4]?M%7K;FWA((MC<8V(L`,?'`&54?F M$EBRELK=H$:`IGIV#P&]?-0WA(`7M.;,SW--Q73,SFWS1H/GJ[W M!+]B6++UQA'1;T2Y6>T9.M= E"<_/>>..E=4[91QQF.#$@P M3%?Q/$\&`U[V:T2H0=`+;H/A;G\CSC@H'@+5X]Q159D'OJZJ@>UX#4$88&SU M*XM[R6@'1<2N!+'E'LR-I@/(1([';V`F!+*GVK)AUJBPP BNHF,'CC%T"P\U)=T.?*Z;GL=-JT:%)_6+"`SA MF9T*=;Q8B-J.9-NNH ';2C_F!1;!*5E'NXC]@'/= MTZU`QRH-[H&XLW@C]C5M36&QJAY9V&T^"P2S'XC9E."_!@\LWU6DYHA44_O5 M%I*ZFL'X)E76JP6UI!B!KFBV' $/]]?[M6"S MJP?<]4W#M\'K\FS#=^6F:PK7G'Y2K:ECOXQE$%\.RK:@L:_:&">652W0P#WR M39,W&3)ZH/3,'%W7)&,UP_=5H!PG)J+#0BS)<@(W4#4,C@24(DE1`=OU>QZP MHLBJN>H#OVJW#Q[OL\#4`M4-I`!.K&'YBNHUBDN1^RF1AUY)>X"TW!)^HPWB M*;KE64!HKNE)@>HW!2-XJ-A7-QI8WNKA-Z1^:E-S\XT4!F04N%C3!.QL`@/+ M5EWUK\FNVLN\4$W)U%?['AZ6 1#-T$SQ`SU9EW3<"275UWGB`JK*FJ`6+ MH7>6`J_DEAU"PT:@`'_8DBDKAL-EV^&J7;._H?3/DG0)A,7.Q#; [HNN7*7B/.-+7G>NB:HBOZD=:SDS1S/0["S'`T6S8-RY"YR9NP MK0&\TC,^3 +*^DZELH8Q^&A M/32II;O@+:E!(&E 4]35(^CAUK%3/J#BFIH/MK`!Q..H$M;9U%Z(Q_M] MFG2LS=?W8H8#I.]YKN*HFN=:ILH-6>&>8[A-BP&MWR%=E;!$>R^[ B;&@A9TY>:&DO#]/J-ADP#%.%>$O8`&\%E/%GBW%--);!T<%7T)F<0 MS*M^RV43TT\.MHI=.=MW`A"AW%$TG7-,,9$;+\67+-ZS'+&@U^CUCAYN':_* MD;=-V39-C?NN&WB>$VB\:42F6?V&T"IX+-*+S?A=JIUM7]=\E2L2IJIPTP;P MFNZH'"SQ'E%H6.:P3MROKXO:"MBV$$S@2YJ%07Q70E_:=&VY3B#RP2CH)\M) MAJI8]C"`#5H7X?DN-MGP?,"SZRK RW>A: MR[#ZY*9HLJ(?B=QV;C^O@'[23-_0-4^5=,EPZ\1Y7W'[/JFEFK)J#L;:AUB2 M"Q:#["J&`681MRW9=8PFEY/KO+ `[!5*Q>\3CW#^\JBXC,LV4U6$\^[N<0M]YN.I'"@<$ M]SGP5"\PFA-E17(N_N-O27DSB1]943XGT4\74QCQ /_=>,[^/VZ.>/T M( 9W>M*O#%05=%%,&R M*>O2Q'5O,:^ '#5*2TAPD,6@5!"A:GXV0QB5@) M[X553R$$[=9E?P>``4D%"],)B^'KHL-3]"6(0C;/HSG\%YY(:8!\@M$L]A27 M#^RWJ]LK]B%*HSQ,DF<&A![-$9*6X@$%`$$\3V#$=W\+9_.;OUB*(MU\<)Q? MFH_RS?LKYB0)3%%&^5B(7E8"HQ?``BBSV$/X&+&[*$I95(FR:'(U"'G(R@'I M@]Z#+2M>MVGM:AOLWSW3%E9Z:43XSQ8E"Q>3N!RQ^2(O%B!K6)G1<_DBJ?8P MC^X7U;D\[CO^>!N-%P!LO _Q]A#N/KV7S.,7? MJE$:4&H2`QI@X>3W15&*5;Q[>HC'#T1$:9:#8*[@@ $?RZXADW#.$_$LELLS;."*F=6H&!AR?9EL'&69/GU7R3Z1Y`$:!0, M$R+[IED:B?W\QR*-!.W*AG2C2B.&@GL0]AZ)S8N*12+8-!/1<=R\:9;3K\=: M9OF01Q%M60K\,XSTFL&7#TQ .M(GMMUR+0,94#J&W?+ M`Y&YLUG$WB594;P_T^"9!@],@[0,(L.P>)'LZON0[T]J?@]:N&(_R,@0[ M)$ZG:*&088%KFV99F69EQ"9Q,0;1!T9*41DQ8)%4!@^9Q%\WYK89T&@&=ZR] MUD8$BL]F<8F#=DV[8@$&%5AFZ^V[*_9Z4[,`*S(!\Q*MCK!>T>^+E.QN`22Y M#FAFOFA`$M:`N@+?RR,`NHNNCLE6F_^R>5,P)TT7,,ZOT3S+2P8S!X!L)DN7 M_]EP_Q2V`AYYCL+\R)QTBUX-AAAZ[#00';Y]1V:]H\N%WP#[NL[CN]Y[@V@2 M;T'>`I+`OQ9A#AYBM?WK!=QHR2V8A>B8L'$#:-@".J\![3H=9?B%J/ZA=HZ1 M_.C2[ $).5_@%QPP7X)95OA50\5WT$"93-.1# M\%QG\R1[1GL&N*1F'GP'>.TQ+I]I7A1&P$6\86'>Y;@FNP&'Q!97#'M<`>/? MHF`(9\*]?XJ$W_X89XL"Y%6U-GB_FB&K ,T\,V$KB?'(""@%P`!"BC*>%Q[=AW_'X=8A[&5V1]@ M;'`O,:$YGL:1L".F60*`TELU>EHT=Y"4D^@1R]Z*@&(9`[C-(;Q=YEDQCQ`P M$.84``*J@&4G\-TR.M8383\^M)\0")/X/KT>X[[G+Q<+G7GJ89-H6EY+*[(% M/WE"EP`[2V.T8Z\=KWW5VOE-;=<7]9UA58\$ MZR9T5P3U"'9>#-9#M<-W65EFLYLE"D>NZ))O][-X?NDK05_XS5?![/#4*I6U MQ&SMIIS;UQI%N%6.+..Z`5:_V(ZIBFTJ/,CS+XP$(ZMMIUTPN9:#UN-JG123 MEJ38'NA;;]I\`N'&_HGN6\%\-#=>BM8S)>Y%B 1#Y"8N_N0O' M?]SG8%!/+BN/?CR.HNGT&TC5(4GT4U2*(.BB$.=_Z[RV:T:/D6=!+EPHTA\Q M"I/$X5V V9AP<@8=`QHIB'T!JPGMW.1LG M49C_=($!LHL?&R2\-?+:CY/?G/(Y\^7R>^K(5L]L.0A;OE[E?B>:%8LHXXG0 MKKWH(FG76XS\,A'YI8CO:H"XC@]A>R")3HR%$D989U)NB%U&M,=,#&D/IP5^1IY]*]%C`DALS`-[\6A:)G! MIS\B%M6PBOSIHEC,YB)]LWP(2Q9.I^(X,&K/&^MC23PD7NN\T^ R`O7B(SB'*< MKI@S+C&1HTYA'5-VR22&=>=LFF "TK.GC:/??AZ!'K;<`46<*S"140D8SJUDXXM[Q;.L$^9_-XS%1=VC_A1GS$QZ_Q/HIX MW&40FKPED>+R0[5^6CY=+3+J`#8,23;"EN3G?7?&%N&7`N%QCWSO(B"B@G+5 M@&CCV1PV563O4+Y9\CQ"8H:-P$TNHY0H.64H]HC,QW$^7LQ`7&+&'LR'VU'# M`L]U!L3\:%`!SYULOCC%2@? DNPJ