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22 SPECTRUM BRANDS | 2006 ANNUAL REPORT
(3) Fiscal 2004 selected fi nancial data was impacted by two acquisitions completed during the fi scal year. The Ningbo acquisition was completed on March 31, 2004, and the
Microlite acquisition was completed on May 28, 2004. See Note 17, Acquisitions, of Notes to Consolidated Financial Statements included in this Annual Report on Form 10-K
for further discussion of these acquisitions.
Fiscal 2004 includes restructuring and related charges—cost of goods sold of $(0.8) million, and restructuring and related charges—operating expenses of $12.2 million.
See Note 16, Restructuring and Related Charges, of Notes to Consolidated Financial Statements included in this Annual Report on Form 10-K for further discussion.
(4) Fiscal 2003 selected fi nancial data was impacted by two acquisitions completed during the fi scal year. The VARTA acquisition was completed on October 1, 2002, and the
Remington acquisition was completed on September 30, 2003.
Fiscal 2003 includes restructuring and related charges—cost of goods sold of $21.1 million, and restructuring and related charges—operating expenses of $11.5 million.
Fiscal 2003 also includes a non-operating expense of $3.1 million discussed in (8) below.
(5) Fiscal 2002 includes restructuring and related charges—cost of goods sold of $1.2 million.
(6) During fi scal 2006, pursuant to Statement of Financial Accounting Standards (“SFAS”) No. 142, “Goodwill and Other Intangible Assets,” (“SFAS 142”), issued by the Financial
Accounting Standards Board (“FASB”), we, with the assistance of independent third party valuation specialists, conducted our annual impairment testing of goodwill and
indefi nite-lived intangible assets. As a result of these analyses we recorded a non-cash pretax impairment charge of approximately $433.0 million. See the “Critical
Accounting Policies—Valuation of Assets and Asset Impairment” section of Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
as well as Note 2(i), Signifi cant Accounting Policies—Intangible Assets, of Notes to Consolidated Financial Statements of this Annual Report on Form 10-K for further details
on the impairment charge.
(7) Fiscal 2006 income tax benefi t of $27.6 million includes a non-cash charge of approximately $29 million which increased the valuation allowance against certain net
deferred tax assets.
(8) Fiscal 2006 includes a $7.9 million net gain on the sale of our Bridgeport, CT manufacturing facility, acquired as part of the Remington acquisition and subsequently closed
in fi scal 2004, and our Madison, WI packaging facility, which was closed in fi scal 2003.
SFAS No. 145, “Recission of FASB Statement Nos. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections,” (“SFAS 145”) addresses, among other
things, the income statement presentation of gains and losses related to debt extinguishments and requires such expenses to no longer be treated as extraordinary items,
unless the items meet the defi nition of extraordinary per Accounting Principles Board (“APB”) Opinion No. 30. We adopted SFAS 145 on October 1, 2002. As a result, in fi scal
2003 we recorded a non-operating expense of $3.1 million for the write-off of unamortized debt issuance costs associated with the replacement of our previous credit
facility in October 2002.
(9) Amounts refl ect the results of continuing operations only.
(10) Working capital is defi ned as current assets less current liabilities.
2006 Form 10-K Annual Report
Spectrum Brands, Inc.