Rayovac 2014 Annual Report Download - page 62

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benefit. We estimate that $122 million of valuation allowance related to domestic deferred tax assets cannot be
released regardless of the amount of domestic income generated due to prior period ownership changes that limit
the amount of NOLs we can use.
ASC 740, which clarifies the accounting for uncertainty in tax positions, requires that we recognize the
impact of a tax position if that position is more likely than not to be sustained on audit based on the technical
merits of the position. As of September 30, 2014 and September 30, 2013, the total amount of unrecognized tax
benefits that, if recognized, would affect the effective income tax rate in future periods was $12 million and $14
million, respectively.
See Note 9, “Income Taxes,” of Notes to Consolidated Financial Statements included in this Annual Report
on Form 10-K for additional information regarding income taxes.
Fiscal Year Ended September 30, 2013 Compared to Fiscal Year Ended September 30, 2012
Highlights of Consolidated Operating Results
Net Sales. Net sales for Fiscal 2013 increased $834 million to $4,086 million from $3,252 million in Fiscal
2012, a 26% increase. The following table details the principal components of the change in net sales from Fiscal
2012 to Fiscal 2013 (in millions):
Net Sales
Fiscal 2012 Net Sales ................................................ $3,252
Addition of hardware and home improvement products ................. 870
Increase in pet supplies ........................................... 12
Increase in electric personal care products ............................ 5
Increase in home and garden products ............................... 3
Decrease in electric shaving and grooming products .................... (1)
Decrease in consumer batteries .................................... (9)
Decrease in small appliances ...................................... (27)
Foreign currency impact, net ...................................... (19)
Fiscal 2013 Net Sales ................................................ $4,086
Consolidated net sales by product line for Fiscal 2013 and Fiscal 2012 are as follows (in millions):
Fiscal Year
2013 2012
Product line net sales by segment
Global batteries and appliances
Consumer batteries .............................................. $ 932 $ 949
Small appliances ................................................ 740 772
Electric shaving and grooming products .............................. 277 279
Electric personal care products ..................................... 255 250
Total Global batteries and appliances .................................... $2,204 $2,250
Hardware and home improvement products ............................... 870 —
Global pet supplies .................................................. 622 615
Home and garden ................................................... 390 387
Total net sales to external customers .................................... $4,086 $3,252
Global consumer battery sales decreased $17 million, or 2%, during Fiscal 2013 compared to Fiscal 2012.
Excluding the impact of negative foreign exchange of $8 million, global consumer battery sales decreased $9
million. The constant currency decrease in global consumer battery sales was primarily attributable to the non-
recurrence of promotions, timing of holiday shipments and inventory management at key customers, tempered by
new customer listings and expansion into new channels.
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