Rayovac 2009 Annual Report Download - page 62

Table of Contents
Index to Financial Statements
On November 1, 2007, we sold the Canadian division of the Home and Garden Business, which operated under the name Nu−Gro, to a new company
formed by RoyCap Merchant Banking Group and Clarke Inc. Cash proceeds received at closing, net of selling expenses, totaled approximately $15 million
and was used to reduce outstanding debt. These proceeds are included in net cash provided by investing activities of discontinued operations in our
Consolidated Statements of Cash Flows included in this Annual Report on Form 10−K. On February 5, 2008, we finalized the contractual working capital
adjustment in connection with this sale which increased our received proceeds by approximately $1 million. As a result of the finalization of the contractual
working capital adjustments we recorded a loss on disposal of approximately $1 million, net of tax benefit. Accordingly, the presentation herein of the
results of continuing operations excludes the Canadian division of the Home and Garden Business for all periods presented. See Note 10, Discontinued
Operations, of Notes to Consolidated Financial Statements included in this Annual Report on Form 10−K for further details on the sale of the Canadian
division of the Home and Garden Business.
The following amounts related to the Canadian division of the Home and Garden Business have been segregated from continuing operations and are
reflected as discontinued operations during Fiscal 2008:
2008(A)
Net sales $ 4.7
Loss from discontinued operations before income taxes $ (1.9)
Provision for income tax benefit (0.7)
Loss from discontinued operations, net of tax $ (1.2)
(A) Fiscal 2008 represents results from discontinued operations from October 1, 2007 through November 1, 2007, the date of sale. Included in the Fiscal
2008 loss is a loss on disposal of approximately $1 million, net of tax benefit.
In accordance with ASC 360, 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, we recorded a non−cash pretax charge of $45 million in discontinued operations to reduce the carrying value of certain assets,
principally consisting of goodwill and intangible assets, related to the Canadian Home and Garden Business in order to reflect the estimated fair value of
this business.
Fiscal Year Ended September 30, 2008 Compared to Fiscal Year Ended September 30, 2007
Highlights of consolidated operating results
During Fiscal 2008 and Fiscal 2007, we have presented the growing products portion of the Home and Garden Business and the Canadian division of
the Home and Garden Business as discontinued operations. Our board of directors committed to the shutdown of the growing products portion of the Home
and Garden Business in November 2008 and the shutdown was completed during the second quarter of our Fiscal 2009. The Canadian division of the Home
and Garden Business was sold on November 1, 2007. See Note 10, Discontinued Operations of Notes to Consolidated Financial Statements, included in this
Annual Report on Form 10−K for additional information regarding the shutdown of the growing products portion of the Home and Garden Business and the
sale of the Canadian division of the Home and Garden Business. As a result, and unless specifically stated, all discussions regarding Fiscal 2008 and Fiscal
2007 only reflect results from our continuing operations.
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