Rayovac 2008 Annual Report Download - page 149

Table of Contents
Index to Financial Statements
SPECTRUM BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. The FASB did, however, provide a one year
deferral for the implementation of SFAS 157 for other non-financial assets. Earlier application is encouraged, provided that the reporting entity has not yet issued
financial statements for that fiscal year, including any financial statements for an interim period within that fiscal year. The Company is currently evaluating the
impact that SFAS 157 will have on its financial condition, results of operations or cash flows.
(3) Inventories
Inventories consist of the following:
September 30,
2008 2007
Raw materials $ 89,811 $ 102,353
Work-in-process 26,160 29,455
Finished goods 267,289 264,521
$ 383,260 $ 396,329
(4) Property, Plant and Equipment
Property, plant and equipment consist of the following:
September 30,
2008 2007
Land, buildings and improvements $ 97,076 $ 105,660
Machinery, equipment and other 391,701 423,559
Construction in progress 16,555 8,382
505,332 537,601
Less accumulated depreciation 270,527 256,033
$ 234,805 $ 281,568
(5) Assets Held for Sale
At September 30, 2008, the Company had $7,452 included in Assets held for sale in its Consolidated Balance Sheets consisting primarily of a distribution facility
in the Dominican Republic and manufacturing facilities in France and Brazil.
At September 30, 2007, the Company had assets and liabilities of $24,975 and $8,475, respectively, related to the Canadian division of the Home and
Garden Business included in Assets held for sale and liabilities held for sale in its Consolidated Balance Sheets. See Note 11, Discontinued Operations, for
additional information related to the sale of the Canadian division of the Home and Garden Business.
In accordance with SFAS 144, long-lived assets to be disposed of by sale are recorded at the lower of their carrying value or fair value less costs to sell.
During Fiscal 2007, the Company recorded a non-cash pretax charge of $44,507 in discontinued operations to reduce the carrying value of certain assets,
principally consisting of goodwill and intangible assets, related to the Canadian division of the Home and Garden Business, in order to reflect the estimated fair
value of this business. Such estimated fair value was based on a range of estimated sales values.
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Source: Spectrum Brands, Inc, 10-K, December 10, 2008