XML 85 R19.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Other Required Disclosures | 3 Months Ended
--- | ---
Dec. 30, 2012
Other Required Disclosures | (14) Other Required Disclosures Receivables and Concentrations of Credit Risk “Receivables, net” in the accompanying Condensed Consolidated Balance Sheets consist of the following:
|  | December 30, 2012 |  |  | September 30, 2012 |
Trade accounts receivable |  | $ | 505.4 |  |  | $ | 357.2 |
Contingent purchase price reduction receivable (Note 13) |  |  | 41.0 |  |  |  | 41.0 |
Other receivables |  |  | 44.5 |  |  |  | 38.1 |
Total receivables |  |  | 590.9 |  |  |  | 436.3 |
Less: Allowance for doubtful trade accounts receivable |  |  | 24.2 |  |  |  | 21.9 |
Total receivables, net |  | $ | 566.7 |  |  | $ | 414.4 |
Trade receivables subject Spectrum Brands to credit risk. Trade accounts receivable are carried at net realizable value. Spectrum Brands extends credit to its customers based upon an evaluation of the customer’s financial condition and credit history, and generally does not require collateral. Spectrum Brands monitors its customers’ credit and financial condition based on changing economic conditions and makes adjustments to credit policies as required. Provision for losses on uncollectible trade receivables are determined based on ongoing evaluations of Spectrum Brands’ receivables, principally on the basis of historical collection experience and evaluations of the risks of nonpayment for a given customer. Spectrum Brands has a broad range of customers including many large retail outlet chains, one of which accounts for a significant percentage of its sales volume. This customer represented approximately 21% and 24% of Spectrum Brands’ net sales during the three months ended December 30, 2012 and January 1, 2012, respectively. This customer also represented approximately 8% and 13% of Spectrum Brands’ trade accounts receivable, net at December 30, 2012 and September 30, 2012, respectively. Approximately 50% and 49% of Spectrum Brands’ net sales during the three months ended December 30, 2012 and January 1, 2012, respectively, occurred outside the United States. These sales and related receivables are subject to varying degrees of credit, currency, political and economic risk. Spectrum Brands monitors these risks and makes appropriate provisions for collectability based on an assessment of the risks present. Inventories Inventories of Spectrum Brands, which are stated at the lower of cost (using the first-in, first-out method) or market, consist of the following:
|  | December 30, 2012 |  |  | September 30, 2012 |
Raw materials |  | $ | 103.1 |  |  | $ | 58.5 |
Work-in-process |  |  | 44.2 |  |  |  | 23.4 |
Finished goods |  |  | 531.9 |  |  |  | 370.7 |
Total inventories |  | $ | 679.2 |  |  | $ | 452.6 |
Properties Properties, net consist of the following:
|  | December 30, 2012 |  |  | September 30, 2012 |
Land, buildings and improvements |  | $ | 94.9 |  |  | $ | 93.6 |
Machinery, equipment and other |  |  | 441.5 |  |  |  | 325.7 |
Construction in progress |  |  | 19.8 |  |  |  | 18.4 |
Total properties, at cost |  |  | 556.2 |  |  |  | 437.7 |
Less accumulated depreciation |  |  | 228.2 |  |  |  | 216.1 |
Total properties, net |  | $ | 328.0 |  |  | $ | 221.6 |
Shipping and Handling Costs Spectrum Brands incurred shipping and handling costs of $50.0 and $50.3 for the three months ended December 30, 2012 and January 1, 2012, respectively. These costs are included in “Selling, acquisition, operating and general expenses” expenses in the accompanying Condensed Consolidated Statements of Operations. Shipping and handling costs include costs incurred with third-party carriers to transport products to customers as well as salaries and overhead costs related to activities to prepare Spectrum Brands’ products for shipment from its distribution facilities. Other Assets “Other assets” in the accompanying Condensed Consolidated Balance Sheets consist of the following:
|  | December 30, 2012 |  |  | September 30, 2012 |
Prepaid expenses and other current assets |  | $ | 181.2 |  |  | $ | 53.1 |
Debt issuance costs |  |  | 95.7 |  |  |  | 50.9 |
Deferred charges and other assets |  |  | 70.3 |  |  |  | 68.6 |
Total other assets |  | $ | 347.2 |  |  | $ | 172.6 |
Accounts payable and other current liabilities “Accounts payable and other current liabilities” in the accompanying Condensed Consolidated Balance Sheets consist of the following:
|  | December 30, 2012 |  |  | September 30, 2012 |
Accounts payable |  | $ | 411.7 |  |  | $ | 325.9 |
Wages and benefits |  |  | 76.1 |  |  |  | 110.9 |
Income taxes payable |  |  | 17.6 |  |  |  | 96.6 |
Accrued interest |  |  | 22.1 |  |  |  | 50.4 |
Accrued expenses |  |  | 27.6 |  |  |  | 25.1 |
Accrued dividends on Preferred Stock |  |  | 8.4 |  |  |  | 8.3 |
Restructuring and related charges |  |  | 8.5 |  |  |  | 6.6 |
Other |  |  | 164.2 |  |  |  | 130.4 |
Total accounts payable and other current liabilities |  | $ | 736.2 |  |  | $ | 754.2 |
Other liabilities “Other liabilities” in the accompanying Condensed Consolidated Balance Sheets consist of the following:
|  | December 30, 2012 |  |  | September 30, 2012 |
Amounts payable for investment purchases |  | $ | 9.3 |  |  | $ | 206.7 |
Retained asset account |  |  | 192.7 |  |  |  | 203.7 |
Funds withheld from reinsurers |  |  | 54.1 |  |  |  | 54.7 |
Amounts payable to reinsurers |  |  | 31.8 |  |  |  | 32.0 |
Remittances and items not allocated |  |  | 35.9 |  |  |  | 29.5 |
Other |  |  | 93.0 |  |  |  | 128.7 |
Total other liabilities |  | $ | 416.8 |  |  | $ | 655.3 |
Restructuring and Related Charges The Company reports restructuring and related charges associated with manufacturing and related initiatives of Spectrum Brands in “Consumer products cost of goods sold.” Restructuring and related charges reflected in “Consumer products 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, acquisition, operating and general expenses,” such as initiatives impacting sales, marketing, distribution, or other non-manufacturing functions. Restructuring and related charges reflected in “Selling, acquisition, operating and general 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 months ended December 30, 2012 and January 1, 2012 and where those charges are classified in the accompanying Condensed Consolidated Statements of Operations:
|  | Three Months Ended |  |  |  |  |  |  |  |  |  |  |  |  |
|  | December 30, 2012 |  |  | January 1, 2012 |  |  | Charges Since Inception |  |  | Expected Future Charges |  |  | Total Projected Costs |  |  | Expected Completion Date |
Initiatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Global Cost Reduction |  | $ | 6.5 |  |  | $ | 7.1 |  |  | $ | 89.5 |  |  | $ | 8.3 |  |  | $ | 97.8 |  |  |  | January 31, 2015 |
Other |  |  | 0.1 |  |  |  | 0.6 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | $ | 6.6 |  |  | $ | 7.7 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Classification: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer products cost of goods sold |  | $ | 1.1 |  |  | $ | 4.6 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Selling, acquisition, operating and general expenses |  |  | 5.5 |  |  |  | 3.1 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | $ | 6.6 |  |  | $ | 7.7 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
The following table summarizes the remaining accrual balance associated with the initiatives and the activity during the three months ended December 30, 2012:
|  | Accrual Balance at September 30, 2012 |  |  | Provisions |  |  | Cash Expenditures |  |  | Accrual Balance at December 30, 2012 |  |  | Expensed as Incurred(a) |
Global Cost Reduction Initiatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Termination benefits |  | $ | 3.3 |  |  | $ | 3.8 |  |  | $ | (1.5 | ) |  | $ | 5.6 |  |  | $ | 0.2 |
Other costs |  |  | 1.1 |  |  |  | 0.1 |  |  |  | (0.3 | ) |  |  | 0.9 |  |  |  | 2.4 |
|  |  | 4.4 |  |  |  | 3.9 |  |  |  | (1.8 | ) |  |  | 6.5 |  |  |  | 2.6 |
Other initiatives |  |  | 2.2 |  |  |  | — |  |  |  | (0.2 | ) |  |  | 2.0 |  |  |  | 0.1 |
|  | $ | 6.6 |  |  | $ | 3.9 |  |  | $ | (2.0 | ) |  | $ | 8.5 |  |  | $ | 2.7 |
(a) | Consists of amounts not impacting the accrual for restructuring and related charges.

X
- Definition Other Required Disclosures + References No definition available. + Details
Name: | hrg_OtherRequiredDisclosuresTextBlock
Namespace Prefix: | hrg_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration