XML 21 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
Restructuring And Related Charges
3 Months Ended
Jan. 01, 2012
Restructuring And Related Charges [Abstract]  
Restructuring And Related Charges

12 RESTRUCTURING AND RELATED CHARGES

The Company reports restructuring and related charges associated with manufacturing and related initiatives in Cost of goods sold. Restructuring and related charges reflected in Cost of goods sold include, but are not limited to, termination, compensation and related costs associated with manufacturing employees, asset impairments relating to manufacturing initiatives, and other costs directly related to the restructuring or integration initiatives implemented.

The Company reports restructuring and related charges relating to administrative functions in Operating expenses, such as initiatives impacting sales, marketing, distribution, or other non-manufacturing related functions. Restructuring and related charges reflected in Operating expenses include, but are not limited to, termination and related costs, any asset impairments relating to the functional areas described above, and other costs directly related to the initiatives.

The following table summarizes restructuring and related charges (credits) incurred by segment for the three month periods ended January 1, 2012 and January 2, 2011:

 

     Three Months  
     2012      2011  

Cost of goods sold:

     

Global Batteries & Appliances

   $ 3,020       $ (150

Global Pet Supplies

     1,585         744   
  

 

 

    

 

 

 

Total restructuring and related charges in cost of goods sold

     4,605         594   

 

 

     Three Months  
     2012      2011  

Operating expense:

     

Global Batteries & Appliances

     877         25   

Home and Garden Business

     344         650   

Global Pet Supplies

     1,290         2,302   

Corporate

     609         1,994   
  

 

 

    

 

 

 

Total restructuring and related charges in operating expense

     3,120         4,971   
  

 

 

    

 

 

 

Total restructuring and related charges

   $ 7,725       $ 5,565   
  

 

 

    

 

 

 

Global Cost Reduction Initiatives Summary

In the fiscal year ended September 30, 2009, Company implemented a series of initiatives within the Global Batteries & Appliances segment, the Global Pet Supplies segment and the Home and Garden Business segment to reduce operating costs, and to evaluate opportunities to improve the Company's capital structure (the "Global Cost Reduction Initiatives"). These initiatives included headcount reductions and the exit of certain facilities within each of the Company's segments. These initiatives also included consultation, legal and accounting fees related to the evaluation of the Company's capital structure prior to its bankruptcy filing. Costs associated with these initiatives, which are expected to be incurred through January 31, 2015, are projected to total approximately $86,000.

The Company recorded $7,129 and $3,729 of pretax restructuring and related charges during the three month periods ended January 1, 2012 and January 2, 2011, respectively, related to the Global Cost Reduction Initiatives.

The following table summarizes the remaining accrual balance associated with the 2009 initiatives and the activity during the three month period ended January 1, 2012:

 

 

     Termination
Benefits
    Other
Costs
    Total  

Accrual balance at September 30, 2011

   $ 8,795      $ 3,021      $ 11,816   

Provisions

     192        195        387   

Cash expenditures

     (3,667     (480     (4,147

Non-cash items

     128        (387     (259
  

 

 

   

 

 

   

 

 

 

Accrual balance at January 1, 2012

   $ 5,448      $ 2,349      $ 7,797   
  

 

 

   

 

 

   

 

 

 

Expensed as incurred (A)

   $ 3,359      $ 3,383      $ 6,742   

(A) 

Consists of amounts not impacting the accrual for restructuring and related charges.

The following table summarizes the expenses incurred during the three month period ended January 1, 2012, the cumulative amount incurred to date and the total future expected costs to be incurred associated with the Global Cost Reduction Initiatives by operating segment:

 

 

     Global
Batteries &
Appliances
     Global Pet
Supplies
     Home and
Garden
Business
     Corporate      Total  

Restructuring and related charges during the three month period ended January 1, 2012

   $ 3,910       $ 2,875       $ 344       $ —         $ 7,129   

Restructuring and related charges since initiative inception

   $ 17,077       $ 29,737       $ 17,052       $ 7,591       $ 71,457   

Total future restructuring and related charges expected

   $ 38       $ 11,600       $ 2,537       $ —         $ 14,175   

In connection with other restructuring efforts, the Company recorded $596 and $1,836 of pretax restructuring and related charges during the three month periods ended January 1, 2012 and January 2, 2011, respectively.