Hardware & Home ImprovementThe Hardware & Home Improvement (HHI) business, the Company’s new reporting segment as of its acquisition on December 17, 2012, recorded net sales of $34.0 million, a net loss, as adjusted, of $3.5 million, and adjusted EBITDA of $3.2 million for the first quarter of fiscal 2013. Adjusted EBITDA was negatively impacted by a $1.6 million accrual adjustment necessary due to a change in contractual terms relative to product returns with a large retailer. The final several weeks of the calendar year, which in 2012 included only eight working days due to holidays, are typically a seasonally low period and not representative of a full year of HHI results. Liquidity and Debt Reduction Spectrum Brands completed its fiscal 2013 first quarter on December 30, 2012 with a solid liquidity position, including a cash balance of approximately $71 million and $32 million drawn on its ABL facility. During the first quarter of fiscal 2013, Spectrum Brands issued $800 million of term debt and $1,090 million of senior secured notes to fund its acquisitions and pay off its previous term loan. In addition, the Company exercised its option to increase its ABL revolving credit facility from $300 million to $400 million. As of the end of the first quarter of fiscal 2013, the Company had approximately $3,226 million of debt outstanding at par, consisting of its ABL facility of $32 million, a senior secured Term Loan of $799 million, $950 million of 9.5% senior secured notes, $520 million of 6.375% senior unsecured notes, $570 million of 6.625% senior unsecured notes, $300 million of 6.75% senior unsecured notes and approximately $55 million of capital leases and other obligations. In addition, the Company had approximately $25 million of letters of credit outstanding. In the second half of fiscal 2013, the Company expects to use its strong free cash flow to continue to reduce debt by approximately $200 million and delever its balance sheet, consistent with past practice, resulting in leverage (total debt to adjusted EBITDA) of approximately 4.4 times or less at the end of fiscal 2013.