Rayovac 2013 Annual Report Download - page 111

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SPECTRUM BRANDS HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
(Amounts in thousands, except per share figures)
The fair value of the Company’s outstanding derivative contracts recorded as liabilities in the accompanying
Consolidated Statements of Financial Position are as follows:
Liability Derivatives
September 30,
2013
September 30,
2012
Derivatives designated as hedging instruments under
ASC 815:
Commodity contracts ....................... Accounts payable $ 450 $ 9
Foreign exchange contracts .................. Accounts payable 4,577 3,063
Foreign exchange contracts .................. Other long-term liabilities 65 —
Total liability derivatives designated as hedging
instruments under ASC 815 .................... $ 5,092 $3,072
Derivatives not designated as hedging instruments
under ASC 815:
Commodity contract ........................ Accounts payable 55 —
Foreign exchange contracts .................. Accounts payable 5,323 3,967
Foreign exchange contracts .................. Other long-term liabilities — 2,926
Total liability derivatives ........................ $10,470 $9,965
Changes in AOCI from Derivative Instruments
For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss on the
effective portion of the derivative is reported as a component of Accumulated Other Comprehensive Income
(“AOCI”) and reclassified into earnings in the same period or periods during which the hedged transaction
affects earnings. Gains and losses on derivatives representing either hedge ineffectiveness or hedge components
excluded from the assessment of effectiveness are recognized in current earnings. See Note 2(u),
“Comprehensive Income (Loss)” for further information.
The following table summarizes the impact of derivative instruments on the accompanying Consolidated
Statement of Operations for Fiscal 2013, pretax:
Derivatives in ASC 815 Cash Flow
Hedging Relationships
Amount of
(Loss) Gain
Recognized in
AOCI on
Derivatives
(Effective Portion)
Location of
(Loss) Gain
Reclassified from
AOCI into Income
(Effective Portion)
Amount of
(Loss) Gain
Reclassified from
AOCI into Income
(Effective Portion)
Location of
(Loss) Gain
Recognized in
Income on
Derivatives
(Ineffective Portion
and Amount
Excluded from
Effectiveness Testing)
Amount of
Loss
Recognized in
Income on
Derivatives
(Ineffective Portion
and Amount
Excluded from
Effectiveness Testing)
Commodity contracts ............... $(2,615) Cost of goods sold $(632) Cost of goods sold $ (39)
Foreign exchange contracts .......... 884 Netsales 920 Net sales —
Foreign exchange contracts .......... (282) Cost of goods sold 632 Cost of goods sold —
Total ........................ $(2,013) $ 920 $ (39)
101