Rayovac 2009 Annual Report Download - page 186

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 components of income tax expense (benefit) are as follows:
Successor
Company Predecessor Company
One Month
Ended
September 30,
2009
Eleven Months
Ended
August 30,
2009 2008 2007
Current:
Federal $ — $ — $ — $ (219)
Foreign 3,111 24,159 20,964 15,445
State 282 (364) 2,089 1,245
Total current 3,393 23,795 23,053 16,471
Deferred:
Federal 49,790 (1,599) 27,109 57,382
Foreign (1,266) 1,581 (63,064) (16,140)
State (724) (1,166) 3,442 (1,944)
Total deferred 47,800 (1,184) (32,513) 39,298
Income tax (benefit) expense $ 51,193 $ 22,611 $ (9,460) $ 55,769
The following reconciles the Federal statutory income tax rate with the Company’s effective tax rate:
Successor
Company Predecessor Company
One Month
Ended
September 30,
2009
Eleven Months
Ended
August 30,
2009 2008 2007
Statutory federal income tax rate 35.0% 35.0% 35.0% 35.0%
Permanent items (4.5) 1.0 (0.8) (1.2)
Revaluation of Deferred Taxes (0.7) — 0.2 5.6
Foreign statutory rate vs. U.S. statutory rate 3.6 (0.8) (1.8) 0.9
State income taxes, net of federal benefit 3.9 (0.6) 1.4 2.4
Net nondeductible (deductible) interest expense — — 0.2 0.2
ASC 350 Impairment — — (11.2) (10.3)
Fresh−start reporting valuation adjustment(A) — (33.9) — —
Gain on settlement of liabilities subject to compromise — 4.5 — —
Professional fees incurred in connection with Bankruptcy Filing — 1.4 — —
Residual tax on foreign earnings (284.7) — (0.5) —
Valuation allowance(B) (7.4) (4.6) (23.5) (42.5)
Other (1.2) — 2.0 —
(256.0)% 2.0% 1.0% (9.9)%
(A) Includes the adjustment to the valuation allowance resulting from fresh−start reporting.
(B) Includes the adjustment to the valuation allowance resulting from the Plan.
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