Rayovac 2013 Annual Report Download - page 100

SPECTRUM BRANDS HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
(Amounts in thousands, except per share figures)
(r) Net (Loss) Income Per Common Share
Basic net (loss) income per common share is computed by dividing net (loss) income available to common
shareholders by the weighted-average number of common shares outstanding for the period. Basic net (loss)
income per common share does not consider the effect of dilutive common stock equivalents. As long as their
effect is not antidilutive, diluted net (loss) income per common share reflects the dilution that would occur if
employee stock units and restricted stock awards were exercised or converted into common shares or resulted in
the issuance of common shares that then shared in the net (loss) income of the entity. The computation of diluted
net (loss) income per common share uses the “treasury stock” method to reflect dilution. The difference between
the number of shares used in the calculations of basic and diluted net (loss) income per share is due to the effects
of restricted stock and assumed conversion of employee stock unit awards.
Net (loss) income per common share is calculated based upon the following shares:
Fiscal 2013 Fiscal 2012 Fiscal 2011
Basic ......................................................... 52,034 51,608 51,092
Effect of restricted stock .......................................... — 1,701 —
Diluted ........................................................ 52,034 53,309 51,092
During Fiscal 2013 and Fiscal 2011, the Company has not assumed the exercise of common stock
equivalents as the impact would be antidilutive due to the net losses reported.
(s) Environmental Expenditures
Environmental expenditures that relate to current ongoing operations or to conditions caused by past operations
are expensed or capitalized as appropriate. The Company determines its liability for environmental matters on a
site-by-site basis and 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.
(t) 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 cash flows, operations or accumulated deficit.
(u) Comprehensive (Loss) Income
Comprehensive (loss) income includes foreign currency translation gains and losses on 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 a net investment in a foreign subsidiary, deferred gains and losses on
derivative financial instruments designated as cash flow hedges and amortization of deferred gains and losses
associated with the Company’s pension plans. The foreign currency translation gains and losses for Fiscal 2013,
Fiscal 2012 and Fiscal 2011 were primarily attributable to the impact of translation of the net assets of the
Company’s European and Latin American operations, which primarily have functional currencies in Euros,
Pounds Sterling, Mexican Peso and Brazilian Real. Except for gains and losses resulting from exchange rate
changes on intercompany balances of a long-term nature, and prior to September 30, 2011, the Company did not
provide income taxes on currency translation adjustments, as earnings from international subsidiaries were
considered to be permanently reinvested. As of the beginning of Fiscal 2012, the Company is no longer
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