Restructuring

2013 Restructuring

In November 2012, the Company's Board of Directors authorized an enterprise-wide restructuring plan and delegated authority to the Company's management to determine the final actions with respect to this plan.

The restructuring plan is expected to reduce the global workforce by more than 10%, or approximately 1,500 colleagues and includes efforts to:


•	Rationalize and streamline operations facilities in the Household Products Division:


•	Consolidate G&A functional support across the organization;


•	Streamline the Household Products Division product portfolio to enable increased focus on our core battery and portable lighting business;


•	Streamline the marketing organization within our Household Products division;


•	Optimize our go-to-market strategies and organization structures within our international markets;


•	Reduce overhead spending including changes to benefit programs and other targeted spending reductions; and


•	Create a center-led purchasing function to drive procurement savings.

The Company believes savings from the restructuring project should generate increased cash flow and should improve key operating metrics, including gross margin and overheads as a percent of sales. In addition, approximately a quarter of the gross savings are expected to be used to increase investment in brand building and innovation to drive future growth, and enable investments in information technology systems to improve capabilities and reduce costs.

The Company believes that a substantial portion of the actions necessary to achieve the targeted savings should be completed by the end of fiscal 2014 and the total on-going savings are expected to be fully realized in fiscal 2015.

For the first quarter of fiscal 2013, the Company recorded $49.0 of costs in connection with the restructuring plan, including:


•	Non-cash asset impairment charges of $19.3 and accelerated depreciation charges of $4.1, (collectively $23.4), related primarily to anticipated Household Products plant closures


•	Severance and related benefit costs of $13.6 associated with staffing reductions that have been identified to date, and


•	Consulting and other charges of $12.0 including project management costs related specifically to the restructuring project and certain enabling activities.

The 2013 restructuring costs were reported on a separate line in the Consolidated Statements of Earnings and Comprehensive Income (Condensed). A majority of the restructuring costs reported in the first quarter of fiscal year 2013 related to the Household Products initiatives.

The following table summarizes the 2013 Restructuring activity for the first three months of fiscal 2013.



					Utilized
	October 1, 2012		Charge to Income		Cash			Non-Cash			December 31, 2012
Severance & Termination Related Costs	$	—	$	13.6	$	(0.2	)	$	—		$	13.4
Asset Impairment/Accelerated Depreciation	—		23.4		—			(23.4		)	—
Other Related Costs	—		12.0		(4.5		)	—			7.5
Total	$	—	$	49.0	$	(4.7	)	$	(23.4	)	$	20.9

Prior Household Products Restructuring

For the quarter ended December 31, 2011, the Company recorded pre-tax income for its prior Household Products restructuring project of $9.2 due to the gain on the sale of the former battery facility in Switzerland, which was approximately $13.0. This gain was offset by additional restructuring costs in the current year fiscal quarter of $3.6. These costs, net of the gain on the sale of the former LCF property in fiscal 2012, are included as a separate line item on the Consolidated Statements of Earnings and Comprehensive Income (Condensed).