Rayovac 2010 Annual Report Download - page 154

SPECTRUM BRANDS HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
The presentation herein of the results of continuing operations has been changed to exclude the Canadian
division of the Home and Garden Business for all periods presented. The following amounts have been
segregated from continuing operations and are reflected as discontinued operations for Fiscal 2008:
Predecessor
Company
2008
Net sales ........................................................ $4,732
Loss from discontinued operations before income taxes ................... $(1,896)
Provision for income tax benefit ...................................... (651)
Loss from discontinued operations (including loss on disposal of $1,087 in
2008), net of tax ................................................ $(1,245)
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 2008 the Predecessor Company recorded a non-cash
pretax charge of $5,700 in discontinued operations to reduce the carrying value of intangible assets related to the
growing products portion of the Home and Garden Business in order to reflect such intangible assets at their
estimated fair value.
(10) Employee Benefit Plans
Pension Benefits
The Company has various defined benefit pension plans covering some of its employees in the United States and
certain employees in other countries, primarily the United Kingdom and Germany. Plans generally provide
benefits of stated amounts for each year of service. The Company funds its U.S. pension plans in accordance with
the requirements of the defined benefit pension plans and, where applicable, in amounts sufficient to satisfy the
minimum funding requirements of applicable laws. Additionally, in compliance with the Company’s funding
policy, annual contributions to non-U.S. defined benefit plans are equal to the actuarial recommendations or
statutory requirements in the respective countries.
The Company also sponsors or participates in a number of other non-U.S. pension arrangements, including
various retirement and termination benefit plans, some of which are covered by local law or coordinated with
government-sponsored plans, which are not significant in the aggregate and therefore are not included in the
information presented below. The Company also has various nonqualified deferred compensation agreements
with certain of its employees. Under certain of these agreements, the Company has agreed to pay certain amounts
annually for the first 15 years subsequent to retirement or to a designated beneficiary upon death. It is
management’s intent that life insurance contracts owned by the Company will fund these agreements. Under the
remaining agreements, the Company has agreed to pay such deferred amounts in up to 15 annual installments
beginning on a date specified by the employee, subsequent to retirement or disability, or to a designated
beneficiary upon death.
Other Benefits
Under the Rayovac postretirement plan the Company provides certain health care and life insurance benefits to
eligible retired employees. Participants earn retiree health care benefits after reaching age 45 over the next 10
succeeding years of service and remain eligible until reaching age 65. The plan is contributory; retiree
144