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Restructuring and Related Charges

9 Months Ended

Jul. 01, 2012

Restructuring and Related Charges [Abstract]

(15) 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, 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 of Spectrum Brands in “Selling, general and administrative expenses,” such as initiatives impacting sales, marketing, distribution, or other non-manufacturing 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.

In 2009, Spectrum Brands implemented a series of initiatives to reduce operating costs and to evaluate opportunities to improve its capital structure (the “Global Cost Reduction Initiatives”). The following table summarizes restructuring and related charges incurred by the Global Cost Reduction Initiatives, as well as other initiatives which were not significant, for the three and nine month periods ended July 1, 2012 and July 3, 2011 and where those charges are classified in the accompanying Condensed Consolidated Statements of Operations:


	Three Months				Nine Months				Charges Since Inception		Expected Future Charges		Total Projected Costs		Expected Completion Date
Initiatives:	2012		2011		2012		2011
Global Cost Reduction	$	3,768	$	6,462	$	15,070	$	14,569	$	79,398	$	7,610	$	87,008		January 31, 2015
Other		128		604		820		3,209

	$	3,896	$	7,066	$	15,890	$	17,778

Classification:
Cost of goods sold	$	2,038	$	2,285	$	8,303	$	4,932
Selling, general and administrative		1,858		4,781		7,587		12,846

	$	3,896	$	7,066	$	15,890	$	17,778

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


	Accrual Balance at September 30, 2011		Provisions			Cash Expenditures			Non-Cash Items			Accrual Balance at July 1, 2012		Expensed as Incurred ^(a)
Global Cost Reduction Initiatives:
Termination benefits	$	8,795	$	1,051		$	(6,897	)	$	(108	)	$	2,841	$	3,556
Other costs		3,021		267			(1,102	)		(436	)		1,750		10,196

		11,816		1,318			(7,999	)		(544	)		4,591		13,752

Other initiatives		4,371		(48	)		(1,975	)		120			2,468		868

	$	16,187	$	1,270		$	(9,974	)	$	(424	)	$	7,059	$	14,620

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

- 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.

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