Rayovac 2008 Annual Report Download - page 158

Table of Contents
Index to Financial Statements
SPECTRUM BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
The tax effects of temporary differences, which give rise to significant portions of the deferred tax assets and deferred tax liabilities, are as follows:
September 30,
2008 2007
Current deferred tax assets:
Employee benefits $ 4,545 $ 2,774
Restructuring 1,460 9,847
Inventories and receivables 14,035 16,870
Marketing and promotional accruals 3,788 3,776
Foreign currency hedges 3,800 1,750
Other 18,313 12,939
Valuation allowance (26,544) (24,315)
Total current deferred tax assets 19,397 23,641
Current deferred tax liabilities:
Inventory (1,143) (1,433)
Other (4,297) —
Total current deferred tax liabilities (5,440) (1,433)
Net current deferred tax assets $ 13,957 $ 22,208
Noncurrent deferred tax assets:
Employee benefits $ 7,398 $ 18,920
Restructuring and purchase accounting 13,335 4,708
Marketing and promotional accruals 932 1,622
Net operating loss and credit carry forwards 447,329 354,506
Other 10,729 7,894
Valuation allowance (469,426) (283,062)
Total noncurrent deferred tax assets 10,297 104,588
Noncurrent deferred tax liabilities:
Property, plant, and equipment (22,778) (30,080)
Unrealized gains (4,044) (4,631)
Intangibles (93,749) (231,859)
Other (4,400) (7,105)
Total noncurrent deferred tax liabilities (124,971) (273,675)
Net noncurrent deferred tax liabilities $ (114,674) $ (169,088)
Net current and noncurrent deferred tax liabilities $ (100,717) $ (146,880)
Undistributed earnings of the Company’s foreign operations amounting to approximately $357,933 and $329,952 at September 30, 2008 and 2007,
respectively, are intended to remain permanently invested. Accordingly, no residual income taxes have been provided on those earnings at September 30, 2008
and 2007. The tax liability that would result from the distribution of these earnings via a dividend distribution is not practicable to determine.
The Company, as of September 30, 2008 has U.S. federal and state net operating loss carryforwards of approximately $1,008,814 and $1,831,990,
respectively which will expire between 2009 and 2028. The Company
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Source: Spectrum Brands, Inc, 10-K, December 10, 2008