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SPECTRUM BRANDS | 2006 ANNUAL REPORT 27
Percentage of Annual Sales
Fiscal Year Ended September 30,
Fiscal Quarter Ended 2006 2005 2004
December
24% 21% 32%
March 25% 23% 20%
June 27% 31% 22%
September 24% 25% 26%
Fiscal Year Ended September 30, 2006 Compared to
Fiscal Year Ended September 30, 2005
Highlights of Consolidated Operating Results
Year-over-year historical comparisons are infl uenced by our acqui-
sitions of United, Tetra and Jungle Labs acquired on February 7,
2005, April 29, 2005 and September 1, 2005, respectively. The
results of these acquisitions are included in our fi scal 2006
Consolidated Statement of Operations for the full fi scal year but
only in prior year results for the period subsequent to the respec-
tive dates of acquisition. See Note 17, Acquisitions, of Notes to
Consolidated Financial Statements of this Annual Report on Form
10-K for additional information regarding these acquisitions.
During fi scal 2006, Nu-Gro Pro and Tech were presented as
discontinued operations consistent with our decision to sell these
businesses. Consequently, the results of these operations are
refl ected in our Consolidated Statements of Operations as dis-
continued operations. The results of Nu-Gro Pro and Tech in fi s-
cal 2005 have been reclassifi ed to conform to the fi scal 2006
classifi cation. As a result, and unless specifi cally stated otherwise,
all discussions regarding fi scal 2006 and fi scal 2005 operating
results refl ect results from our continuing operations. See Note
11, Discontinued Operations, of Notes to Consolidated Financial
Statements of this Annual Report on Form 10-K for additional
information on the disposition of Nu-Gro Pro and Tech.
Net Sales
Net sales for fi scal 2006 increased to $2,552 million from
$2,307 million in fi scal 2005 refl ecting an 11% increase.
Businesses acquired in fi scal 2005 contributed $330 million to
2006 net sales during the months these businesses were included
in fi scal 2006 but not included in fi scal 2005 net sales. The fol-
lowing table details the principal components of the change in
net sales from fi scal 2005 to fi sca1 2006 (in millions):
Net Sales
Fiscal 2005 Reported Net Sales $2,307
Impact of United acquisition from
October 2005 – January 2006 186
Impact of Tetra acquisition from October 2005 –
April 2006 132
Increase in lawn and garden and household insect
control sales, excluding impact of United acquisition 26
Increase in pet products sales, excluding impact
of Tetra, United and Jungle Labs acquisitions 14
Increase in Latin America Remington branded
product sales 14
Impact of Jungle Labs acquisition from
October 2005 – August 2006 12
Decline in Europe/ROW battery sales (89)
Decline North America shaving and grooming sales (28)
Decline in North America alkaline battery sales (18)
Foreign currency impact, net (3)
Other, net (1)
Fiscal 2006 Net Sales $2,552
Consolidated net sales by product line for fi scal 2006 and fi scal
2005 are as follows (in millions):
Product Line Net Sales
Fiscal Year 2006 2005
Batteries
$ 861 $ 968
Lights 88 94
Shaving and grooming 252 273
Personal care 150 141
Lawn and garden 507 402
Household insect control 151 143
Pet products 543 286
Total net sales to external customers $2,552 $2,307
2006 Form 10-K Annual Report
Spectrum Brands, Inc.