Our Spectrum Value Model is at the heart of  our operating approach. As the accompanying  chart shows, this model emphasizes providing  value to the consumer with products that work  as well as or better than our competition for  a lower cost. We do this while also delivering  higher retailer margins. We concentrate our  efforts to win at point of sale and on creating and maintaining a low-cost, effi cient operating struc- ture that allows our top-line growth to contribute  directly to our profi tability. This operating model  permeates our businesses. We live it every day. We believe our superior value brand strategy  is working well. We are maintaining or growing  share in most of our key product categories.  We continue to target driving our cost structure  down and intend to move rapidly to strengthen  our balance sheet with further and regular debt  reduction payments. The Russell Hobbs integration is on track,  and we remain confi dent of achieving, and  possibly exceeding, the $25-$30 million of cost  synergies we have projected over the next  few years. There are additional opportunities to  capture revenue and new product development  synergies as we begin leveraging each  company’s regional strengths in complementary  categories. Beyond Russell Hobbs, important  integrations are occurring within our Global Pet  and Home & Garden businesses, even as we  have completed the relocation of our corporate  headquarters from Atlanta back to Madison,  Wisconsin. In short, Spectrum Brands now has  a streamlined organization aligned along global  business units, and connected through a shared  services platform. ratio and extending debt maturities, while  enhancing liquidity and increasing capital  available for growth. In addition to organic growth in our business  segments, and a focus on driving more volume  through our plants to improve capacity utiliza- tion rates, we look to grow our Global Pet and  Home & Garden segments through small, bolt- on acquisitions. To that end, our Global Pet  business recently completed an accretive $12.5  million acquisition of Seed Resources, a leader  in the domestic wild bird seed cake business with its well-known Birdola ®  premium brand. The result is a more accountable, agile and  competitive Spectrum Brands – a business  much better positioned to generate steady and  profi table margins. Although market conditions  change constantly, our brand fundamentals –  from manufacturing and distribution to product  development and market position – are solid.  As a result, we are confi dent in the ability of our  focused businesses to more fully realize their  potential going forward as businesses designed  to deliver strong, consistent cash fl ow.  GLYPH<T_h> e “Spectrum Value Model” di ff erentiates Spectrum  Brands and provides stability and sustainable earnings. { Spectrum Va l u e Model “SAME PERFORMANCE, LESS PRICE, BETTER VALUE”  Best retailer margin; category management; merchandising  Focus on #2 brands in markets with high barriers to entry  VALUE TO RETAILERS MARKET POSITIONING Point of Sale Focus Control Costs Focused Investment Product Performance Win at point of sale, not  through brand advertising Shared services, global  new product development  and common platforms Invest in product performance, R&D and cost improvement Match or exceed competitor product performance 4 3 2 1