Rayovac 2010 Annual Report Download - page 51

(2) Fiscal 2007 loss from discontinued operations, net of tax, includes a non-cash pretax impairment charge of
approximately $45 million to reduce the carrying value of certain assets, principally consisting of goodwill and
intangible assets, relating to our Canadian Division of the Home and Garden Business in order to reflect the
estimated fair value of this business. Fiscal 2008 loss from discontinued operations, net of tax, includes a
non-cash pretax impairment charge of approximately $8 million to reduce the carrying value of intangible
assets relating to our growing products portion of the Home and Garden Business in order to reflect the
estimated fair value of this business. See Note 9, Discontinued Operations, of Notes to Consolidated Financial
Statements included in this Annual Report on Form 10-K for information relating to these impairment charges.
(3) Fiscal 2010 income tax expense of $63 million includes a non-cash charge of approximately $91.9 million
which increased the valuation allowance against certain net deferred tax assets.
(4) Included in the period from August 31, 2009 through September 30, 2009 for the Successor Company is a
non-cash tax charge of $58 million related to the residual U.S. and foreign taxes on approximately $166
million of actual and deemed distributions of foreign earnings. The period from October 1, 2008 through
August 30, 2009 income tax expense includes a non-cash adjustment of approximately $52 million which
reduced the valuation allowance against certain deferred tax assets.
Included in the period from October 1, 2008 through August 30, 2009 for the Predecessor Company is a
non-cash charge of $104 million related to the tax effects of the fresh start adjustments. In addition,
Predecessor Company includes the tax effect on the gain on the cancellation of debt from the
extinguishment of the senior subordinated notes as well as the modification of the senior term credit facility
resulting in approximately $124 million reduction in the U.S. net deferred tax asset exclusive of indefinite
lived intangibles. Due to the Company’s full valuation allowance position as of August 30, 2009 on the U.S.
net deferred tax asset exclusive of indefinite lived intangibles, the tax effect of the gain on the cancellation
of debt and the modification of the senior secured credit facility is offset by a corresponding adjustment to
the valuation allowance of $124 million. The tax effect of the fresh start adjustments, the gain on the
cancellation of debt and the modification of the senior secured credit facility, net of corresponding
adjustments to the valuation allowance, are netted against reorganization items.
(5) Fiscal 2008 income tax benefit of $10 million includes a non-cash charge of approximately $222 million
which increased the valuation allowance against certain net deferred tax assets.
(6) Fiscal 2007 income tax expense of $56 million includes a non-cash charge of approximately $180 million
which increased the valuation allowance against certain net deferred tax assets.
(7) Fiscal 2006 income tax benefit of $29 million includes a non-cash charge of approximately $29 million
which increased the valuation allowance against certain net deferred tax assets.
(8) See Note 14, Restructuring and Related Charges, of Notes to Consolidated Financial Statements included in
this Annual Report on Form 10-K for further discussion.
(9) Fiscal 2006 includes a $8 million net gain on the sale of our Bridgeport, CT manufacturing facility, acquired
as part of the Remington Products Company, L.L.C. acquisition and subsequently closed in Fiscal 2004, and
our Madison, WI packaging facility, which was closed in our fiscal year ended September 30, 2003.
(10) Each of Fiscal 2010, the period from August 31, 2009 through September 30, 2009, the period from
October 1, 2008 through August 30, 2009, Fiscal 2008, 2007 and 2006 does not assume the exercise of
common stock equivalents as the impact would be antidilutive.
(11) Amounts reflect the results of continuing operations only.
(12) Working capital is defined as current assets less current liabilities.
(13) Fiscal 2010 includes a non-cash charge of $83 million related to the write off of unamortized debt issuance
costs and the write off of unamortized discounts and premiums related to the extinguishment of debt that
was refinanced in conjunction with the Merger.
(14) Fiscal 2010, includes the results of Russell Hobbs’ operations since June 16, 2010. Russell Hobbs
contributed $238 million in Net Sales and recorded operating income of $1 million for the period from
June 16, 2010 through September 30, 2010, which includes $13 million of acquisition and integration
related charges. In addition, Fiscal 2010 includes $26 million of Acquisition and integration related charges
associated with the Merger.
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