Rayovac 2003 Annual Report Download - page 52

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The tax effects of temporary differences, which give rise to significant portions of the deferred tax assets and deferred tax liabilities
are as follows:
September 30,
2002 2003
Current deferred tax assets:
Employee benefits $ 970 $ 6,895
Restructuring and asset impairments 212 911
Inventories and receivables 2,105 7,917
Marketing and promotional accruals 351 185
Net operating loss carry forwards 1,861 4,432
Currency hedges 1,370 40
Other 1,717 6,833
Valuation allowance —(201)
Total current deferred tax assets 8,586 27,012
Current deferred tax liabilities:
Property, plant and equipment held for sale —(3,896)
Inventory —(4,597)
Other —(18)
Total current deferred tax liabilities —(8,511)
Net current deferred tax assets $ 8,586 $ 18,501
Noncurrent deferred tax assets:
Employee benefits $ 5,103 $ 9,724
Net operating loss and credit carry forwards 4,163 13,233
Property, plant and equipment 147 2,170
Other 2,930 9,752
Valuation allowance —(3,843)
Total noncurrent deferred tax assets 12,343 31,036
Noncurrent deferred tax liabilities:
Property, plant, and equipment (12,954) (9,458)
Intangibles (4,488) (11,123)
Employee benefits (2,200) —
Other (1,315) (2,113)
Total noncurrent deferred tax liabilities (20,957) (22,694)
Net noncurrent deferred tax (liabilities) assets $ (8,614) $ 8,342
Undistributed earnings of the Company’s foreign operations amounting to approximately $30,881 and $79,827 at September 30, 2002
and 2003, respectively, are intended to remain permanently invested to finance future growth and expansion. Accordingly, no U.S.
income taxes have been provided on those earnings at September 30, 2002 and 2003.
The Company, as of September 30, 2003, has state net operating loss carryforwards of approximately $30,033 which will expire
between 2008 and 2018. The Company has foreign net operating loss carryforwards, primarily relating to the Company’s Mexico
operations, of approximately $31,793, which will expire between 2006 and 2013. At September 30, 2003, the Company has recorded
a deferred tax asset for the benefit of these losses.
Notes to Consolidated Financial Statements
Rayovac Corporation and Subsidiaries
(In thousands, except per share amounts)
Page 48/49