Rayovac 2010 Annual Report Download - page 130

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SPECTRUM BRANDS HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
(A) Included in this amount is $(6,191), reflected in the Derivatives Not Designated as Hedging Instruments Under ASC 815 table below, as
a result of the de-designation of a cash flow hedge as described below.
The following table summarizes the impact of derivative instruments designated as cash flow hedges on the
accompanying Consolidated Statements of Operations for Fiscal 2008 (Predecessor Company):
Derivatives in ASC 815 Cash Flow
Hedging Relationships
Amount of
Gain (Loss)
Recognized in
AOCI on
Derivatives
(Effective Portion)
Location of
Gain (Loss)
Reclassified from
AOCI into Income
(Effective Portion)
Amount of
Gain (Loss)
Reclassified from
AOCI into Income
(Effective Portion)
Location of
Gain (Loss)
Recognized in
Income on
Derivative
(Ineffective Portion
and Amount
Excluded from
Effectiveness Testing)
Amount of
Gain (Loss)
Recognized in
Income on
Derivatives
(Ineffective Portion
and Amount
Excluded from
Effectiveness Testing)
Commodity contracts ........ $(15,949) Cost of goods sold $(10,521) Cost of goods sold $(433)
Interest rate contracts ........ (5,304) Interest expense 772 Interest expense —
Foreign exchange contracts .... 752 NetSales (1,729) Net sales —
Foreign exchange contracts .... 2,627 Cost of goods sold (9,293) Cost of goods sold —
Commodity contracts ........ 4,669 Discontinued operations 8,925 Discontinued operations (177)
Total ................. $(13,205) $(11,846) $(610)
Derivative Contracts
For derivative instruments that are used to economically hedge the fair value of the Company’s third party
and intercompany payments and interest rate payments, the gain (loss) is recognized in earnings in the period of
change associated with the derivative contract.
During Fiscal 2010 the Successor Company recognized the following respective gains (losses) on derivative
contracts:
Amount of Gain (Loss)
Recognized in
Income on Derivatives
Location of Gain or (Loss)
Recognized in
Income on Derivatives
Commodity contracts ............................... $ 153 Cost of goods sold
Foreign exchange contracts .......................... (42,039) Other (income) expense, net
Total ........................................ $(41,886)
During the period from August 31, 2009 through September 30, 2009 (Successor Company) and the period
from October 1, 2008 through August 30, 2009 (Predecessor Company), the Company recognized the following
respective gains (losses) on derivative contracts:
Derivatives Not Designated as
Hedging Instruments Under ASC 815
Amount of Gain (Loss)
Recognized in
Income on Derivatives
Successor
Company
Predecessor
Company
Period from
August 31, 2009
through
September 30,
2009
Period from
October 1, 2008
through
August 30,
2009
Location of Gain or (Loss)
Recognized in
Income on Derivatives
Interest rate contracts(A) .................... $ — $(6,191) Interest expense
Foreign exchange contracts .................. (1,469) 3,075 Other (income) expense, net
Total ................................ $(1,469) $(3,116)
120