Rayovac 2014 Annual Report Download - page 118

SPECTRUM BRANDS HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
(Amounts in thousands, except per share figures)
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and
deferred tax liabilities are as follows:
September 30,
2014 2013
Current deferred tax assets:
Employee benefits ................................................... $ 16,487 $ 11,372
Restructuring ....................................................... 6,318 7,085
Inventories and receivables ............................................ 24,906 24,296
Marketing and promotional accruals ..................................... 15,966 14,146
Other .............................................................. 14,207 23,261
Valuation allowance .................................................. (36,015) (32,342)
Total current deferred tax assets ............................................. $ 41,869 $ 47,818
Current deferred tax liabilities:
Inventories and receivables ............................................ (745) (2,748)
Unrealized gains ..................................................... (1,179) (373)
Other .............................................................. (6,018) (11,738)
Total current deferred tax liabilities .......................................... $ (7,942) $ (14,859)
Net current deferred tax assets .............................................. $ 33,927 $ 32,959
Noncurrent deferred tax assets:
Employee benefits ................................................... $ 41,248 $ 35,578
Restructuring and purchase accounting ................................... 712 340
Net operating loss and credit carry forwards ............................... 507,514 668,679
Prepaid royalty ...................................................... 6,582 6,956
Property, plant and equipment .......................................... 7,040 9,692
Unrealized losses .................................................... 279 2,136
Long-term debt ...................................................... 49 668
Intangibles ......................................................... 6,737 3,917
Other .............................................................. 5,217 5,268
Valuation allowance .................................................. (297,091) (422,244)
Total noncurrent deferred tax assets .......................................... $278,287 $ 310,990
Noncurrent deferred tax liabilities:
Property, plant, and equipment .......................................... (22,634) (27,478)
Unrealized gains ..................................................... (20,012) (13,126)
Intangibles ......................................................... (728,018) (735,506)
Taxes on unremitted foreign earnings .................................... (2,648) (18,581)
Other .............................................................. (8,173) (9,073)
Total noncurrent deferred tax liabilities ....................................... $(781,485) $(803,764)
Net noncurrent deferred tax liabilities ........................................ $(503,198) $(492,774)
Net current and noncurrent deferred tax liabilities ............................... $(469,271) $(459,815)
In Fiscal 2012, the Company began recording residual U.S. and foreign taxes on undistributed foreign
earnings as a result of its change in position regarding future repatriation and the requirements of ASC Topic
740: “Income Taxes” on a prospective basis. To the extent necessary, the Company intends to utilize earnings of
foreign subsidiaries in order to support management’s plans to voluntarily accelerate pay down of U.S. debt, fund
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