Rayovac 2014 Annual Report Download - page 97

SPECTRUM BRANDS HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
(Amounts in thousands, except per share figures)
(q) Net Income (Loss) Per Common Share
Basic net income (loss) per common share is computed by dividing net income (loss) available to common
shareholders by the weighted-average number of common shares outstanding for the period. Basic net income
(loss) per common share does not consider the effect of dilutive common stock equivalents. As long as their
effect is not antidilutive, diluted net income (loss) 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 income (loss) of the entity. The computation of diluted
net income (loss) 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 income (loss) per share is due to the effects
of restricted stock and assumed conversion of employee stock unit awards.
Net income (loss) per common share is calculated based upon the following shares:
Fiscal 2014 Fiscal 2013 Fiscal 2012
Basic ......................................................... 52,634 52,034 51,608
Effect of common stock equivalents ................................. 627 — 1,701
Diluted ........................................................ 53,261 52,034 53,309
During Fiscal 2013, the Company has not assumed the exercise of common stock equivalents as the impact
would be antidilutive due to the net loss reported.
(r) 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.
(s) Comprehensive Income (Loss)
Comprehensive income (loss) 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 2014,
Fiscal 2013 and Fiscal 2012 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 Pesos and Brazilian Reals.
For information pertaining to the reclassification of unrealized gains and losses on derivative instruments,
see Note 7, “Derivative Financial Instruments.”
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