Significant Accounting Policies And Practices | 12 Months Ended |
Sep. 30, 2014 |
Significant Accounting Policies And Practices [Abstract] | ' |
Significant Accounting Policies And Practices | ' |
(2) SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES |
(a) Principles of Consolidation and Fiscal Year End |
The consolidated financial statements include the financial statements of Spectrum Brands and its majority owned subsidiaries and have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). All intercompany transactions have been eliminated. The Company’s fiscal year ends September 30. References herein to Fiscal 2014, Fiscal 2013 and Fiscal 2012 refer to the fiscal years ended September 30, 2014, 2013 and 2012, respectively. |
(b) Revenue Recognition |
The Company recognizes revenue from product sales generally upon delivery to the customer, or at the shipping point in situations where the customer picks up the product or where delivery terms so stipulate. This represents the point at which title and all risks and rewards of ownership of the product are passed, provided that: there are no uncertainties regarding customer acceptance, there is persuasive evidence that an arrangement exists, the price to the buyer is fixed or determinable and ability to collect is deemed reasonably assured. The Company is generally not obligated to allow for, and its general policy is not to accept, product returns for battery sales. The Company does accept returns in specific instances related to its shaving, grooming, personal care, home and garden, small appliances, hardware and home improvement and pet products. The provision for customer returns is based on historical sales and returns and other relevant information. The Company estimates and accrues the cost of returns, which are treated as a reduction of Net sales. |
The Company enters into various promotional arrangements, primarily with retail customers, including arrangements entitling such retailers to cash rebates from the Company based on the level of their purchases, which require the Company to estimate and accrue the estimated costs of the promotional programs. These costs are treated as a reduction of Net sales. |
The Company also enters into promotional arrangements that target the ultimate consumer. The costs associated with such arrangements are treated as either a reduction in Net sales or an increase in Cost of goods sold, based on the type of promotional program. The income statement presentation of the Company’s promotional arrangements complies with Accounting Standards Codification (“ASC”) Topic 605: “Revenue Recognition.” For all types of promotional arrangements and programs, the Company monitors its commitments and uses various measures, including past experience, to determine amounts to be recorded for the estimate of the earned, but unpaid, promotional costs. The terms of the Company’s customer-related promotional arrangements and programs are tailored to each customer and are documented through written contracts, correspondence or other communications with the individual customers. |
The Company also enters into various arrangements, primarily with retail customers, which require the Company to make upfront cash, or “slotting” payments, in order to secure the right to distribute through such customers. The Company capitalizes slotting payments provided the payments are supported by a time or volume based arrangement with the retailer, and amortizes the associated payment over the appropriate time or volume-based term of the arrangement. The amortization of slotting payments is treated as a reduction in Net sales and a corresponding asset is reported in Deferred charges and other in the accompanying Consolidated Statements of Financial Position. |
(c) Use of Estimates |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
(d) Cash Equivalents |
For purposes of the accompanying Consolidated Statements of Financial Position and Consolidated Statements of Cash Flows, the Company considers all highly liquid debt instruments purchased with original maturities of three months or less to be cash equivalents. |
(e) Concentrations of Credit Risk and Major Customers |
Trade receivables subject the Company to credit risk. Trade accounts receivable are carried at net realizable value. The Company extends credit to its customers based upon an evaluation of the customer’s financial condition and credit history, but generally does not require collateral. The Company monitors its customers’ credit and financial condition based on changing economic conditions and will make adjustments to credit policies as required. Provisions for losses on uncollectible trade receivables are determined based on ongoing evaluations of the Company’s receivables, principally on the basis of historical collection experience and evaluations of the risks of nonpayment for a given customer. |
The Company 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 major customer represented approximately 16%, 18% and 23% of the Company’s Net sales during Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. This major customer also represented approximately 14% and 11% of the Company’s Trade accounts receivable, net as of September 30, 2014 and September 30, 2013, respectively. |
Approximately 40%, 41% and 46% of the Company’s Net sales during Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively, occurred outside of the United States. These sales and related receivables are subject to varying degrees of credit, currency and political and economic risk. The Company monitors these risks and makes appropriate provisions for ability to collect based on an assessment of the risks present. |
(f) Displays and Fixtures |
Temporary displays are generally disposable cardboard displays shipped to customers to facilitate display of the Company’s products. Temporary displays are generally disposed of after a single use by the customer. |
Permanent fixtures are more lasting in nature, are generally made from wire or other longer-lived materials, and are shipped to customers for use in displaying the Company’s products. These permanent fixtures are restocked with the Company’s product multiple times over the fixture’s useful life. |
The costs of both temporary and permanent displays are capitalized as a prepaid asset until shipped to the customer and are included in Prepaid expenses and other in the accompanying Consolidated Statements of Financial Position. The costs of temporary displays are expensed in the period in which they are shipped to customers and the costs of permanent fixtures are amortized over an estimated useful life of one to two years from the date they are shipped to customers. The unamortized cost of permanent fixtures is reflected in Deferred charges and other in the accompanying Consolidated Statements of Financial Position. |
(g) Inventories |
The Company’s inventories are valued at the lower of cost or net realizable value. Cost of inventories is determined using the first-in, first-out (FIFO) method. |
(h) Property, Plant and Equipment |
Property, plant and equipment are recorded at cost or at fair value if acquired in a purchase business combination. Depreciation on plant and equipment is calculated on the straight-line method over the estimated useful lives of the assets. Depreciable lives by major classification are as follows: |
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Building and improvements | | | 20 | - | 40 | years | | | |
Machinery, equipment and other | | | 2 | - | 15 | years | | | |
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Plant and equipment held under capital leases are amortized on a straight-line basis over the shorter of the lease term or estimated useful life of the asset; such amortization is included in depreciation expense. |
The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company evaluates recoverability of assets to be held and used by comparing the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. |
(i) Intangible Assets |
Intangible assets are recorded at cost or at fair value if acquired in a purchase business combination. Customer lists, proprietary technology and certain trade name intangibles are amortized, using the straight-line method, over their estimated useful lives of up to 20 years. The excess of the fair value of the consideration transferred in a business combination over the fair value of net assets acquired (goodwill) and indefinite-lived intangible assets (certain trade name intangibles) are not amortized. Goodwill is tested for impairment at least annually at the reporting unit level, with such groupings being consistent with the Company’s reportable segments. If impairment is indicated, a write-down to fair value (normally measured by discounting estimated future cash flows) is recorded. Indefinite-lived trade name intangibles are tested for impairment at least annually by comparing the fair value, determined using a relief from royalty methodology, with the carrying value. Any excess of carrying value over fair value is recognized as an impairment loss in income from operations. |
ASC Topic 350: “Intangibles-Goodwill and Other,” (“ASC 350”) requires that goodwill and indefinite-lived intangible assets be tested for impairment annually, or more often if an event or circumstance indicates that an impairment loss may have been incurred. The Company’s management uses its judgment in assessing whether assets may have become impaired between annual impairment tests. Indicators such as unexpected adverse business conditions, economic factors, unanticipated technological change or competitive activities, loss of key personnel and acts by governments and courts may signal that an asset has become impaired. |
During Fiscal 2014, Fiscal 2013 and Fiscal 2012, the Company’s goodwill and trade name intangibles were tested for impairment as of the Company’s August financial period end, the Company’s annual testing date. |
Intangibles with Indefinite Lives |
In accordance with ASC 350, the Company conducts impairment testing on the Company’s goodwill. To determine fair value during Fiscal 2014, Fiscal 2013 and Fiscal 2012, the Company used the discounted estimated future cash flows methodology. Assumptions critical to the Company’s fair value estimates under the discounted estimated future cash flows methodology are: (i) the present value factors used in determining the fair value of the reporting units and trade names, (ii) projected average revenue growth rates used in estimating future cash flows for the reporting unit, and (iii) projected long-term growth rates used in the derivation of terminal year values. These and other assumptions are impacted by economic conditions and expectations of management and will change in the future based on period specific facts and circumstances. The Company also tested the aggregate estimated fair value of its reporting units for reasonableness by comparison to the total market capitalization of the Company, which includes both its equity and debt securities. |
In addition, in accordance with ASC 350, as part of the Company’s annual impairment testing, the Company tested its indefinite-lived trade name intangible assets for impairment by comparing the carrying amount of such trade names to their respective fair values. Fair value was determined using a relief from royalty methodology. Assumptions critical to the Company’s fair value estimates under the relief from royalty methodology are: (i) royalty rates, (ii) projected average revenue growth rates, and (iii) applicable discount rates. |
In connection with the Company’s annual goodwill impairment testing performed during Fiscal 2014, Fiscal 2013 and Fiscal 2012, the first step of such testing indicated that the fair value of the Company’s reporting segments were in excess of their carrying amounts and, accordingly, no further testing of goodwill was required. |
During Fiscal 2014, Fiscal 2013 and Fiscal 2012, the Company concluded that the fair value of its intangible assets exceeded their carrying value. |
Intangibles with Definite or Estimable Useful Lives |
The Company assesses the recoverability of intangible assets with definite or estimable useful lives whenever an event or circumstance occurs that indicates an impairment loss may have been incurred. The Company assesses the recoverability of these intangible assets by determining whether their carrying value can be recovered through projected undiscounted future cash flows. If projected undiscounted future cash flows indicate that the carrying value of the assets will not be recovered, an adjustment would be made to reduce the carrying value to an amount equal to estimated fair value determined based on projected future cash flows discounted at the Company’s incremental borrowing rate. The cash flow projections used in estimating fair value are based on historical performance and management’s estimate of future performance, giving consideration to existing and anticipated competitive and economic conditions. |
Impairment reviews are conducted at the judgment of management when it believes that a change in circumstances in the business or external factors warrants a review. Circumstances such as the discontinuation of a product or product line, a sudden or consistent decline in the sales forecast for a product, changes in technology or in the way an asset is being used, a history of operating or cash flow losses, or an adverse change in legal factors or in the business climate, among others, may trigger an impairment review. |
The fair values of our Global Batteries & Appliances, Hardware & Home Improvement, Global Pet Supplies and the Home and Garden Business exceeded their carrying values by 87%, 47%, 80% and 146%, respectively, as of the date of the Company’s latest annual impairment testing. |
(j) Debt Issuance Costs |
Debt issuance costs are capitalized and amortized to interest expense using the effective interest method over the lives of the related debt agreements. |
(k) Accounts Payable |
Included in accounts payable are book overdrafts, net of deposits on hand, on disbursement accounts that are replenished when checks are presented for payment. |
(l) Income Taxes |
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. |
The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in income tax expense in the period in which the change in judgment occurs. Accrued interest expense and penalties related to uncertain tax positions are recorded in Income tax expense. |
(m) Foreign Currency Translation |
Local currencies are considered the functional currencies for most of the Company’s operations outside the United States. Assets and liabilities of the Company’s foreign subsidiaries are translated at the rate of exchange existing at year-end, with revenues, expenses and cash flows translated at the average of the monthly exchange rates. Adjustments resulting from translation of the financial statements are recorded as a component of Accumulated other comprehensive income (loss) (“AOCI”). Also included in AOCI are the effects of exchange rate changes on intercompany balances of a long-term nature. |
As of September 30, 2014 and September 30, 2013, accumulated (losses) gains related to foreign currency translation adjustments of $(39,517) and $(7,050), respectively, were reflected in the accompanying Consolidated Statements of Financial Position in AOCI. |
Foreign currency transaction gains and losses related to assets and liabilities that are denominated in a currency other than the functional currency are reported in the Consolidated Statements of Operations in the period they occur. Exchange losses on foreign currency transactions aggregating $6,775, $9,388 and $1,654 for Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively, are included in Other expense, net, in the accompanying Consolidated Statements of Operations. |
(n) Shipping and Handling Costs |
The Company incurred shipping and handling costs of $260,321, $246,090 and $198,152 during Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. Shipping and handling costs, which are included in Selling expenses in the accompanying Consolidated Statements of Operations, include costs incurred with third-party carriers to transport products to customers and salaries and overhead costs related to activities to prepare the Company’s products for shipment at the Company’s distribution facilities. |
(o) Advertising Costs |
The Company incurred advertising costs of $21,356, $22,971 and $20,706 during Fiscal 2014, Fiscal 2013 and Fiscal 2012, respectively. Such advertising costs are included in Selling expenses in the accompanying Consolidated Statements of Operations and include agency fees and other costs to create advertisements, as well as costs paid to third parties to print or broadcast the Company’s advertisements. |
(p) Research and Development Costs |
Research and development costs are charged to expense in the period they are incurred. |
(q) Environmental Expenditures |
Environmental expenditures that relate to current ongoing operations or to conditions caused by past operations are expensed or capitalized as appropriate. The Company determines its liability for environmental matters on a site-by-site basis and records a liability at the time when it is probable that a liability has been incurred and such liability can be reasonably estimated. The estimated liability is not reduced for possible recoveries from insurance carriers. Estimated environmental remediation expenditures are included in the determination of the net realizable value recorded for assets held for sale. |
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(r) Comprehensive Income (Loss) |
Comprehensive income (loss) includes foreign currency translation gains and losses on assets and liabilities of foreign subsidiaries, effects of exchange rate changes on intercompany balances of a long-term nature and transactions designated as a hedge of a net investment in a foreign subsidiary, deferred gains and losses on derivative financial instruments designated as cash flow hedges and amortization of deferred gains and losses associated with the Company’s pension plans. The foreign currency translation gains and losses for Fiscal 2014, Fiscal 2013 and Fiscal 2012 were primarily attributable to the impact of translation of the net assets of the Company’s European and Latin American operations, which primarily have functional currencies in Euros, Pounds Sterling, Mexican Pesos and Brazilian Reals. |
For information pertaining to the reclassification of unrealized gains and losses on derivative instruments, see Note 7, “Derivative Financial Instruments.” |
The following is a roll forward of the amounts recorded in AOCI: |
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| | Fiscal 2014 | | Fiscal 2013 | | Fiscal 2012 |
Foreign Currency Translation Adjustments: | | | | | | | | | |
Beginning balance | | $ | -7,050 | | $ | -225 | | $ | 8,377 |
Gross change before reclassification adjustment | | | -32,528 | | | -6,622 | | | -8,602 |
Gross change after reclassification adjustment | | $ | -32,528 | | $ | -6,622 | | $ | -8,602 |
Deferred tax effect | | | — | | | — | | | — |
Deferred tax valuation allowance | | | — | | | — | | | — |
Other Comprehensive Income (Loss) | | $ | -32,528 | | $ | -6,622 | | $ | -8,602 |
Noncontrolling interest | | | -61 | | | 203 | | | — |
Comprehensive income (loss) attributable to controlling interest | | $ | -39,517 | | $ | -7,050 | | $ | -225 |
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Derivative Hedging Instruments: | | | | | | | | | |
Beginning balance | | $ | -2,291 | | $ | 218 | | $ | -1,327 |
Gross change before reclassification adjustment | | | 13,154 | | | -2,013 | | | -1,824 |
Net reclassification adjustment for (gains) losses included in earnings | | | 2,557 | | | -920 | | | 3,097 |
Gross change after reclassification adjustment | | $ | 15,711 | | $ | -2,933 | | $ | 1,273 |
Deferred tax effect | | | -4,225 | | | -234 | | | -636 |
Deferred tax valuation allowance | | | 45 | | | 658 | | | 908 |
Other Comprehensive Income (Loss) | | $ | 11,531 | | $ | -2,509 | | $ | 1,545 |
Ending balance | | | 9,240 | | $ | -2,291 | | $ | 218 |
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Defined Benefit Pension Plans: | | | | | | | | | |
Beginning balance | | $ | -29,180 | | $ | -33,428 | | $ | -21,496 |
Gross change before reclassification adjustment | | | -6,600 | | | 8,097 | | | -15,682 |
Net reclassification adjustment for losses included in Cost of goods sold | | | 582 | | | 1,571 | | | 900 |
Net reclassification adjustment for (gains) losses included in Selling expenses | | | 295 | | | -584 | | | — |
Net reclassification adjustment for losses included in General and administrative expenses | | | 491 | | | 373 | | | — |
Gross change after reclassification adjustment | | $ | -5,232 | | $ | 9,457 | | $ | -14,782 |
Deferred tax effect | | | 2,954 | | | -5,123 | | | 3,632 |
Deferred tax valuation allowance | | | -1,339 | | | -86 | | | -782 |
Other Comprehensive Income (Loss) | | $ | -3,617 | | $ | 4,248 | | $ | -11,932 |
Ending balance | | $ | -32,797 | | $ | -29,180 | | $ | -33,428 |
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Total Other Comprehensive Income (Loss), net of tax | | $ | -24,614 | | $ | -4,883 | | $ | -18,989 |
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Total ending AOCI | | $ | -63,074 | | $ | -38,521 | | $ | -33,435 |
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(s) Stock Compensation |
The Company measures the cost of its stock-based compensation plans, which include restricted stock awards and restricted stock units, based on the fair value of the awards at the date of grant and recognizes these costs over the requisite service period of the awards. |
In June 2010, SB Holdings adopted the Spectrum Brands Holdings, Inc. 2007 Omnibus Equity Award Plan (formerly known as the Russell Hobbs Inc. 2007 Omnibus Equity Award Plan, as amended on June 24, 2008) (the “RH Plan”). Prior to October 21, 2010, up to 600 shares of common stock, net of forfeitures and cancellations, could have been issued under the RH Plan. After October 21, 2010, no further awards may be made under the RH Plan. |
On October 21, 2010, the Board adopted the Spectrum Brands Holdings, Inc. 2011 Omnibus Equity Award Plan (the “2011 Plan”), which was approved at the Annual Meeting of Stockholders on March 1, 2011. During Fiscal 2014, the 2011 Plan was amended to increase the shares issuable by 1,000. Including the amendment to the 2011 Plan, up to 5,626 shares of common stock of SB Holdings, net of cancellations, may be issued under the 2011 Plan. |
Total stock compensation expense associated with restricted stock units recognized by the Company during Fiscal 2014, Fiscal 2013 and Fiscal 2012, was $44,903, $43,098, $25,208, respectively. The amounts before tax are included in General and administrative expenses in the accompanying Consolidated Statements of Operations. The remaining unrecognized pre-tax compensation cost related to restricted stock units at September 30, 2014 was $11,815. |
The Company granted approximately 641 restricted stock units during Fiscal 2014. The 641 restricted stock units granted during Fiscal 2014, include 193 restricted stock units that vested immediately and 126 restricted stock units that vest over a one year period. The remaining 322 restricted stock units are performance-based and vest over a two year period. The total market value of the restricted stock units on the date of the grant was approximately $48,602. |
The Company granted approximately 678 restricted stock units during Fiscal 2013. Of these grants, 26 restricted stock units are time-based and vest over a period of one year. Of the remaining 652 restricted stock units, 90 are performance-based and vest over a one year period and 562 are both performance and time-based and vest over a one year performance-based period followed by a one year time-based period. The total market value of the restricted stock units on the date of the grant was approximately $31,307. |
The Company granted approximately 745 restricted stock units during Fiscal 2012. Of these grants, 42 restricted stock units are time-based and vest over a period ranging from one to two years. The remaining 703 restricted stock units are both performance and time-based and vest over a one year performance-based period followed by a one year time-based period. The total market value of the restricted stock units on the date of the grant was approximately $20,439. |
A summary of the Company’s restricted stock and restricted stock unit award activity for Fiscal 2014, Fiscal 2013 and Fiscal 2012, and the non-vested awards outstanding as of September 30, 2014 is as follows: |
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| | | | Average | | Fair Value | |
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Restricted Stock Awards | | Shares | | Fair Value | | Date | |
Restricted stock awards at September 30, 2011 | | 123 | | | 24.20 | | $ | 2,977 | |
Vested | | -110 | | | 23.75 | | | -2,613 | |
Restricted stock awards at September 30, 2012 | | 13 | | $ | 28.00 | | $ | 364 | |
Vested | | -13 | | | 28.00 | | | -364 | |
Restricted stock awards at September 30, 2013 | | — | | $ | — | | $ | — | |
Vested | | — | | | — | | | — | |
Restricted stock awards at September 30, 2014 | | — | | $ | — | | $ | — | |
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| | | | Average | | Fair Value | |
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Restricted Stock Units | | Shares | | Fair Value | | Date | |
Non-vested restricted stock units at September 30, 2011 | | 1,629 | | $ | 29.00 | | $ | 47,236 | |
Granted | | 745 | | | 27.43 | | | 20,439 | |
Forfeited | | -57 | | | 28.49 | | | -1,624 | |
Vested | | -386 | | | 28.81 | | | -11,120 | |
Non-vested restricted stock units at September 30, 2012 | | 1,931 | | $ | 28.45 | | $ | 54,931 | |
Granted | | 678 | | | 46.18 | | | 31,307 | |
Forfeited | | -302 | | | 30.36 | | | -9,168 | |
Vested | | -1,206 | | | 28.19 | | | -34,003 | |
Non-vested restricted stock units at September 30, 2013 | | 1,101 | | $ | 39.12 | | $ | 43,067 | |
Granted | | 641 | | | 75.82 | | | 48,602 | |
Forfeited | | -6 | | | 69.33 | | | -416 | |
Vested | | -932 | | | 39.34 | | | -36,663 | |
Non-vested restricted stock units at September 30, 2014 | | 804 | | $ | 67.90 | | $ | 54,590 | |
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(t) Restructuring and Related Charges |
Restructuring charges are recognized and measured in accordance with the provisions of ASC Topic 420: “Exit or Disposal Cost Obligations,” (“ASC 420”) and ASC Topic 712: “Compensation – Nonretirement Post-Employment Benefits,” (ASC 712”). Under ASC 420 and ASC 712, restructuring charges include, but are not limited to, termination and related costs consisting primarily of one-time termination benefits such as severance costs and retention bonuses, and contract termination costs consisting primarily of lease termination costs. Related charges, as defined by the Company, include, but are not limited to, other costs directly associated with exit and integration activities, including impairment of property and other assets, departmental costs of full-time incremental integration employees, and any other items related to the exit or integration activities. Costs for such activities are estimated by management after evaluating detailed analyses of the costs to be incurred. The Company presents restructuring and related charges on a combined basis. |
Liabilities from restructuring and related charges are recorded for estimated costs of facility closures, significant organizational adjustments and measures undertaken by management to exit certain activities. Costs for such activities are estimated by management after evaluating detailed analyses of the costs to be incurred. Such liabilities could include amounts for items such as severance costs and related benefits (including settlements of pension plans), impairment of property and equipment and other current or long term assets, lease termination payments and any other items directly related to the exit activities. While the actions are carried out as expeditiously as possible, restructuring and related charges are estimates. Changes in estimates resulting in an increase to or a reversal of a previously recorded liability may be required as management executes a restructuring plan. |
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 and related costs associated with manufacturing employees, asset impairments relating to manufacturing initiatives and other costs directly related to the restructuring initiatives implemented. |
The Company reports restructuring and related charges associated with 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 administrative functions and other costs directly related to the initiatives implemented. |
(See also Note 14, “Restructuring and Related Charges,” for a more complete discussion of restructuring initiatives and related costs). |
(u) Acquisition and Integration Related Charges |
Acquisition and integration related charges reflected in Operating expenses include, but are not limited to, transaction costs such as banking, legal, accounting and other professional fees directly related to both consummated acquisitions and acquisition targets, termination and related costs for transitional and certain other employees, integration related professional fees and other post business combination expenses associated with mergers and acquisitions. |
The following table summarizes acquisition and integration related charges incurred by the Company during Fiscal 2014, Fiscal 2013 and Fiscal 2012: |
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| | 2014 | | 2013 | | 2012 |
Russell Hobbs | | | | | | | | | |
Legal and professional fees | | | 9 | | | 39 | | | 1,495 |
Integration costs | | | 2,421 | | $ | 3,452 | | $ | 10,168 |
Employee termination charges | | | 30 | | | 217 | | | 3,900 |
Russell Hobbs Acquisition and integration related charges | | $ | 2,460 | | $ | 3,708 | | $ | 15,563 |
HHI Business | | | | | | | | | |
Legal and professional fees | | | 2,192 | | | 27,712 | | | — |
Integration costs | | | 8,691 | | | 8,864 | | | — |
Employee termination charges | | | 155 | | | 356 | | | — |
HHI Business Acquisition and integration related charges | | $ | 11,038 | | $ | 36,932 | | $ | — |
Liquid Fence | | | 3,475 | | | — | | | — |
Shaser | | | 930 | | | 4,828 | | | — |
FURminator | | | 53 | | | 2,270 | | | 7,938 |
Black Flag | | | — | | | 154 | | | 3,379 |
Other | | | 2,146 | | | 553 | | | 4,186 |
Total Acquisition and integration related charges | | $ | 20,102 | | $ | 48,445 | | $ | 31,066 |
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