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Restructuring and Related Charges | 12 Months Ended
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Sep. 30, 2011
Restructuring and Related Charges [Abstract] |
Restructuring and Related Charges | (23) Restructuring and Related Charges The Company reports restructuring and related charges associated with manufacturing and related initiatives of Spectrum Brands in “Cost of goods sold.” Restructuring and related charges reflected in “Cost of goods sold” include, but are not limited to, termination 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 of Spectrum Brands in “Selling, general and administrative expenses,” which include, but are not limited to, initiatives impacting sales, marketing, distribution, or other non-manufacturing related functions. Restructuring and related charges reflected in “Selling, general and administrative 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 implemented as well as consultation, legal and accounting fees related to the evaluation of the Predecessor’s capital structure incurred prior to the Bankruptcy Filing. In 2009, Spectrum Brands implemented a series of initiatives to reduce operating costs as well as evaluate Spectrum Brands’ opportunities to improve its capital structure (the “Global Cost Reduction Initiatives”). These initiatives included headcount reductions and the exit of certain facilities in the U.S. These initiatives also included consultation, legal and accounting fees related to the evaluation of Spectrum Brands’ capital structure. In 2008, Spectrum Brands implemented an initiative within certain of its operations in China to reduce operating costs and rationalize Spectrum Brands’ manufacturing structure. These initiatives included the plan to exit Spectrum Brands’ Ningbo, China battery manufacturing facility (the “Ningbo Exit Plan”). In 2007, Spectrum Brands implemented an initiative in Latin America to reduce operating costs (the “Latin American Initiatives”). These initiatives included the reduction of certain manufacturing operations in Brazil and the restructuring of management, sales, marketing, and support functions. In 2007, Spectrum Brands began managing its business in three vertically integrated, product-focused lines of business (the “Global Realignment Initiatives”). In connection with these changes, Spectrum Brands undertook a number of cost reduction initiatives, primarily headcount reduction. In 2006, Spectrum Brands implemented a series of initiatives within certain of its European operations to reduce operating costs and rationalize Spectrum Brands’ manufacturing structure (the “European Initiatives”). In connection with the acquisitions of United Industries Corporation and Tetra Holding GmbH in 2005, Spectrum Brands implemented a series of initiatives to optimize the global resources of the combined companies (the “United and Tetra Integration”). The following table summarizes restructuring and related charges incurred by initiative: Restructuring and Related Charges
|  | Successor |  |  |  | Predecessor |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  | Period from |  |  |  | Period from |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  | August 31, |  |  |  | October 1, |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  | 2009 through |  |  |  | 2009 through |  |  | Charges |  |  | Expected |  |  | Total |  |  | Expected
|  |  |  |  |  |  |  | September 30, |  |  |  | August 30, |  |  | Since |  |  | Future |  |  | Projected |  |  | Completion
Initiatives: |  | 2011 |  |  | 2010 |  |  | 2009 |  |  |  | 2009 |  |  | Inception |  |  | Charges |  |  | Costs |  |  | Date
Global Cost Reduction |  | $ | 25,484 |  |  | $ | 18,443 |  |  | $ | 1,550 |  |  |  | $ | 18,851 |  |  | $ | 64,328 |  |  | $ | 13,587 |  |  | $ | 77,915 |  |  | January 31, 2015
Ningbo Exit Plan |  |  | 273 |  |  |  | 2,162 |  |  |  | 165 |  |  |  |  | 10,652 |  |  |  | 29,651 |  |  |  | — |  |  |  | 29,651 |  |  | Complete
Latin America |  |  | — |  |  |  | — |  |  |  | — |  |  |  |  | 207 |  |  |  | 11,447 |  |  |  | — |  |  |  | 11,447 |  |  | Complete
Global Realignment |  |  | 3,138 |  |  |  | 3,605 |  |  |  | 139 |  |  |  |  | 11,636 |  |  |  | 91,725 |  |  |  | 702 |  |  |  | 92,427 |  |  | June 30, 2013
European |  |  | (251 | ) |  |  | (92 | ) |  |  | 7 |  |  |  |  | 11 |  |  |  | 26,714 |  |  |  | — |  |  |  | 26,714 |  |  | Substantially Complete
United & Tetra / Other |  |  | — |  |  |  | — |  |  |  | (132 | ) |  |  |  | 2,723 |  |  |  | 79,544 |  |  |  | — |  |  |  | 79,544 |  |  | Complete
|  | $ | 28,644 |  |  | $ | 24,118 |  |  | $ | 1,729 |  |  |  | $ | 44,080 |  |  | $ | 303,409 |  |  | $ | 14,289 |  |  | $ | 317,698 |  |  |
The following table summarizes restructuring and related charges incurred by type of charge and where those charges are classified in the accompanying Consolidated Statements of Operations:
|  | Successor |  |  |  | Predecessor |
|  |  |  |  |  |  |  | Period from |  |  |  | Period from |
|  |  |  |  |  |  |  | August 31, |  |  |  | October 1, 2008 |
|  |  |  |  |  |  |  | 2009 through |  |  |  | through |
|  |  |  |  |  |  |  | September 30, |  |  |  | August 30, |
|  | 2011 |  |  | 2010 |  |  | 2009 |  |  |  | 2009 |
Costs included in cost of goods sold: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Global Cost Reduction Initiatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Termination benefits |  | $ | 1,679 |  |  | $ | 2,630 |  |  | $ | — |  |  |  | $ | 200 |
Other associated costs |  |  | 5,889 |  |  |  | 2,273 |  |  |  | 6 |  |  |  |  | 2,245 |
Ningbo Exit Plan: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Termination benefits |  |  | — |  |  |  | 14 |  |  |  | — |  |  |  |  | 857 |
Other associated costs |  |  | 273 |  |  |  | 2,148 |  |  |  | 165 |  |  |  |  | 8,461 |
Latin America initiatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Termination benefits |  |  | — |  |  |  | — |  |  |  | — |  |  |  |  | 207 |
Global Realignment Initiatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Termination benefits |  |  | — |  |  |  | 187 |  |  |  | — |  |  |  |  | 333 |
Other associated costs |  |  | — |  |  |  | (102 | ) |  |  | — |  |  |  |  | 869 |
European Initiatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other associated costs |  |  | — |  |  |  | — |  |  |  | 7 |  |  |  |  | 11 |
United & Tetra Integration: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Termination benefits |  |  | — |  |  |  | — |  |  |  | — |  |  |  |  | 6 |
Total included in cost of goods sold |  |  | 7,841 |  |  |  | 7,150 |  |  |  | 178 |  |  |  |  | 13,189 |
Costs included in selling, general and administrative expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Global Cost Reduction Initiatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Termination benefits |  |  | 10,155 |  |  |  | 4,268 |  |  |  | 866 |  |  |  |  | 5,690 |
Other associated costs |  |  | 7,761 |  |  |  | 9,272 |  |  |  | 678 |  |  |  |  | 10,716 |
Ningbo Exit Plan: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other associated costs |  |  | — |  |  |  | — |  |  |  | — |  |  |  |  | 1,334 |
Global Realignment Initiatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Termination benefits |  |  | 1,207 |  |  |  | 5,361 |  |  |  | 94 |  |  |  |  | 6,994 |
Other associated costs |  |  | 1,931 |  |  |  | (1,841 | ) |  |  | 45 |  |  |  |  | 3,440 |
European Initiatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Termination benefits |  |  | (251 | ) |  |  | (92 | ) |  |  | — |  |  |  |  | — |
United & Tetra Integration: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Termination benefits |  |  | — |  |  |  | — |  |  |  | — |  |  |  |  | 2,297 |
Other associated costs |  |  | — |  |  |  | — |  |  |  | (132 | ) |  |  |  | 427 |
Breitenbach, France facility closure |  |  | — |  |  |  | — |  |  |  | — |  |  |  |  | (7 | )
Total included in selling, general and administrative expenses |  |  | 20,803 |  |  |  | 16,968 |  |  |  | 1,551 |  |  |  |  | 30,891 |
Total restructuring and related charges |  | $ | 28,644 |  |  | $ | 24,118 |  |  | $ | 1,729 |  |  |  | $ | 44,080 |
The following table summarizes the remaining accrual balance associated with the initiatives and the activity during Fiscal 2011: Remaining Accrual Balance
|  | Accrual |  |  |  |  |  |  |  |  |  |  |  | Accrual |  |  |  |
|  | Balance at |  |  |  |  |  |  |  |  |  |  |  | Balance at |  |  |  |
|  | September 30, |  |  |  |  |  | Cash |  |  | Non-Cash |  |  | September 30, |  |  | Expensed as |
Initiatives |  | 2010 |  |  | Provisions |  |  | Expenditures |  |  | Items |  |  | 2011 |  |  | Incurred(a) |
Global Cost Reduction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Termination benefits |  | $ | 6,447 |  |  | $ | 10,423 |  |  | $ | (8,286 | ) |  | $ | 211 |  |  | $ | 8,795 |  |  | $ | 1,411 |
Other costs |  |  | 4,005 |  |  |  | 1,319 |  |  |  | (2,890 | ) |  |  | 587 |  |  |  | 3,021 |  |  |  | 12,331 |
|  |  | 10,452 |  |  |  | 11,742 |  |  |  | (11,176 | ) |  |  | 798 |  |  |  | 11,816 |  |  |  | 13,742 |
Ningbo Exit Plan |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other costs |  |  | 491 |  |  |  | 24 |  |  |  | (143 | ) |  |  | (372 | ) |  |  | — |  |  |  | 249 |
|  |  | 491 |  |  |  | 24 |  |  |  | (143 | ) |  |  | (372 | ) |  |  | — |  |  |  | 249 |
Global Realignment Termination benefits |  |  | 8,721 |  |  |  | 1,207 |  |  |  | (7,394 | ) |  |  | (5 | ) |  |  | 2,529 |  |  |  | — |
Other costs |  |  | 2,281 |  |  |  | 71 |  |  |  | (832 | ) |  |  | 322 |  |  |  | 1,842 |  |  |  | 1,860 |
|  |  | 11,002 |  |  |  | 1,278 |  |  |  | (8,226 | ) |  |  | 317 |  |  |  | 4,371 |  |  |  | 1,860 |
European |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Termination benefits |  |  | 1,801 |  |  |  | (251 | ) |  |  | (638 | ) |  |  | (912 | ) |  |  | — |  |  |  | — |
Other costs |  |  | 47 |  |  |  | — |  |  |  | (47 | ) |  |  | — |  |  |  | — |  |  |  | — |
|  |  | 1,848 |  |  |  | (251 | ) |  |  | (685 | ) |  |  | (912 | ) |  |  | — |  |  |  | — |
|  | $ | 23,793 |  |  | $ | 12,793 |  |  | $ | (20,230 | ) |  | $ | (169 | ) |  | $ | 16,187 |  |  | $ | 15,851 |
(a) |  | Consists of amounts not impacting the accrual for restructuring and related charges.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 146 -Paragraph 20 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140864-122747 + Details
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