Rayovac 2002 Annual Report Download - page 47

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Rayovac Corporation and Subsidiaries
(In thousands, except per share amounts)
The table below presents net income and earnings per share information as if Statement No. 142 had been adopted at the beginning of periods presented:
2000 2001 2002
Reported net income $38,350 $11,534 $29,237
Add back: Goodwill amortization,
net of tax of $0 1,241 1,050 —
Add back: Trade name amortization,
net of tax of $855 1,395 1,395 —
Adjusted net income $40,986 $13,979 $29,237
Basic Earnings Per Share:
Reported net income $ 1.39 $ 0.40 $ 0.92
Goodwill amortization 0.05 0.04 —
Trade name amortization 0.05 0.05 —
Adjusted net income $ 1.49 $ 0.49 $ 0.92
Diluted Earnings Per Share:
Reported net income $ 1.32 $ 0.39 $ 0.90
Goodwill amortization 0.04 0.03 —
Trade name amortization 0.05 0.05 —
Adjusted net income $ 1.41 $ 0.47 $ 0.90
(w) Impact of Recently Issued Accounting Standards In August 2001, the FASB issued Statement No. 143, Accounting for Asset Retirement Obligations.
Statement No. 143 addresses financial accounting and reporting for obligations associated with the retirement of tangible long-lived assets and the asso-
ciated asset retirement costs. The Company is required to adopt this statement no later than its fiscal year beginning October 1, 2002. Management
believes that the impact of adoption on the consolidated financial statements will be immaterial.
In October 2001, the FASB Issued Statement No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets. This statement supersedes FASB
Statement No. 121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed of, and the accounting and reporting pro-
visions of APB Opinion No. 30, Reporting Results of Operations—Reporting the Effects of Disposal of a Segment of a Business, and Extraordinary, Unusual and
Infrequently Occurring Events and Transactions, for the disposal of a segment of a business. The Company is required to adopt this statement no later than
its fiscal year beginning October 1, 2002. Management believes that the impact of adoption on the consolidated financial statements will be immaterial.
In April 2002, the FASB issued Statement No. 145, Rescission of FASB Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and
Technical Corrections. The Statement addresses, among other things, the income statement treatment of gains and losses related to debt extinguishments,
requiring such expenses to no longer be treated as extraordinary items, unless the items meet the definition of extraordinary per APB Opinion No. 30,
Reporting the Results of Operations—Reporting the Effects of Disposal of a Segment of a Business, and Extraordinary, Unusual and Infrequently Occurring
Events and Transactions. The Company is required to adopt this statement no later than its fiscal year beginning October 1, 2002. Upon adoption, the
2001 loss on early extinguishment of debt will be reclassified to other expense.
In July 2002, the FASB issued Statement No. 146, Accounting for Costs Associated with Exit or Disposal Activities. The Statement requires companies to
recognize costs associated with exit or disposal activities when they are incurred rather than at the date of a commitment to an exit or disposal plan. The
Statement replaces EITF Issue No. 94-3, “Liability Recognition for Certain Employee Termination Benefits and Other Costs to Exit an Activity (includ-
ing Certain Costs Incurred in a Restructuring).” The Company is required to apply this Statement prospectively to exit or disposal activities initiated
after December 31, 2002.