Rayovac 2010 Annual Report Download - page 136

SPECTRUM BRANDS HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
records a liability at the time when it is probable that a liability has been incurred and such liability can be
reasonably estimated. The estimated liability is not reduced for possible recoveries from insurance carriers.
Estimated environmental remediation expenditures are included in the determination of the net realizable value
recorded for assets held for sale.
(u) Reclassifications
Certain prior year amounts have been reclassified to conform to the current year presentation. These
reclassifications had no effect on previously reported results of operations or accumulated deficit.
(v) Comprehensive Income
Comprehensive income includes foreign currency translation of assets and liabilities of foreign subsidiaries,
effects of exchange rate changes on intercompany balances of a long-term nature and transactions designated as a
hedge of net foreign investments, derivative financial instruments designated as cash flow hedges and additional
minimum pension liabilities associated with the Company’s pension. Except for the currency translation impact
of the Company’s intercompany debt of a long-term nature, the Company does not provide income taxes on
currency translation adjustments, as earnings from international subsidiaries are considered to be permanently
reinvested.
Amounts recorded in AOCI on the accompanying Consolidated Statements of Shareholders’ Equity
(Deficit) and Comprehensive Income (Loss) for Fiscal 2010, Fiscal 2009 and Fiscal 2008 are net of the following
tax (benefit) expense amounts:
Pension
Adjustment
Cash
Flow Hedges
Translation
Adjustment Total
2010 (Successor Company) ........................... $(6,141) $(2,659) $(1,566) $(10,366)
2009 (Successor Company) ........................... $ 247 $ 16 $ 319 $ 582
2009 (Predecessor Company) .......................... $ (497) $ 5,286 $ (40) $ 4,749
2008 (Predecessor Company) .......................... $(1,139) $(4,765) $ (318) $ (6,222)
(w) Stock Compensation
In 1996, the Predecessor Company’s board of directors (“Predecessor Board”) approved the Rayovac
Corporation 1996 Stock Option Plan (“1996 Plan”). Under the 1996 Plan, stock options to acquire up to 2,318
shares of common stock, in the aggregate, could be granted to select employees and non-employee directors of
the Predecessor Company under either or both a time-vesting or a performance-vesting formula at an exercise
price equal to the market price of the common stock on the date of grant. The 1996 Plan expired on
September 12, 2006.
In 1997, the Predecessor Board adopted the 1997 Rayovac Incentive Plan (“1997 Plan”). Under the 1997
Plan, the Predecessor Company could grant to employees and non-employee director’s stock options, stock
appreciation rights (“SARs”), restricted stock, and other stock-based awards, as well as cash-based annual and
long-term incentive awards. Accelerated vesting will occur in the event of a change in control, as defined in the
1997 Plan. Up to 5,000 shares of common stock could have been issued under the 1997 Plan. The 1997 Plan
expired in August 31, 2007.
In 2004, the Predecessor Board adopted the 2004 Rayovac Incentive Plan (“2004 Plan”). The 2004 Plan
supplements the 1997 Plan. Under the 2004 Plan, the Predecessor Company could grant to employees and
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