Rayovac 2008 Annual Report Download - page 161

Table of Contents
Index to Financial Statements
SPECTRUM BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
operation. Accordingly, the presentation herein of the results of continuing operations includes the Home and Garden Business, without the Canadian division
which, as indicated above, was sold on November 1, 2007, for all periods presented. (See also Note 5, Assets Held for Sale, where the specific assets and
liabilities to be sold are further discussed.)
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.
The presentation herein of the results of continuing operations has been changed to exclude the Canadian division of its Home and Garden Business for all
periods presented. The following amounts have been segregated from continuing operations and are reflected as discontinued operations for the years ended
September 30, 2008, 2007 and 2006, respectively:
2008 2007 2006
Net sales $ 4,732 $ 88,724 $ 89,506
Loss from discontinued operations before income taxes $ (1,896) $ (46,324) $ (378)
Provision for income tax benefit (651) (6,276) (138)
Loss from discontinued operations (including loss on disposal of $1,087 in 2008), net of tax $ (1,245) $ (40,048) $ (240)
On January 25, 2006, the Company sold its fertilizer technology and Canadian professional fertilizer products businesses of Nu-Gro to Agrium Inc.
Proceeds from the sale were used to reduce outstanding debt. Nu-Gro Pro and Tech Fiscal 2005 revenue approximated $80,000 from sales of high-end specialty
controlled-release nitrogen fertilizer and other products to professional turf markets and specialty wholesale fertilizer customers. As part of the transaction, the
Company signed strategic multi-year reciprocal supply agreements with Agrium. Proceeds from the sale totaled approximately $83,000 after selling expenses and
contractual working capital adjustments which were finalized on October 30, 2006.
Effective October 1, 2005, the Company reflected the operations of Nu-Gro Pro and Tech as discontinued operations. Therefore, the presentation herein of
the results of continuing operations has been changed to exclude Nu-Gro Pro and Tech for all periods presented. The Company discontinued these operations as
part of the United integration initiatives. (See also Note 16, Restructuring and Related Charges, for additional discussion of United integration initiatives). The
following amounts have been segregated from continuing operations and are reflected as discontinued operations for the year ended September 30, 2006:
2006(A)
Net sales $ 16,314
Loss from discontinued operations before income taxes $ (6,388)
Provision for income tax benefit (868)
Loss from discontinued operations (including loss on disposal of $3,901, net of tax $ (5,520)
(A) Represents results for the discontinued operations for October 1, 2005 through January 2006.
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Source: Spectrum Brands, Inc, 10-K, December 10, 2008