Rayovac 2004 Annual Report Download - page 80

Download and view the complete annual report

Please find page 80 of the 2004 Rayovac annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 115

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115

RAYOVAC CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
(x) Adoption of New Accounting Pronouncements
In December 2003, the FASB issued SFAS No. 132 (Revised 2003), Employers’ Disclosures about
Pensions and Other Postretirement Benefits. As required by this standard, the Company adopted the annual
disclosure provisions for all domestic and foreign plans for the fiscal year ended September 30, 2004. SFAS No.
132, as revised, requires additional disclosures in interim and year-end reports about assets, obligations, cash
flows and net periodic benefit cost of defined benefit pension plans and other postretirement benefit plans. This
statement did not change the measurement or recognition of those plans required by SFAS No. 87, Employers’
Accounting for Pensions, SFAS No. 88, Employers’ Accounting for Settlements and Curtailments of Defined
Benefit Pension Plans and for Termination Benefits, or SFAS No. 106, Employers’ Accounting for
Postretirement Benefits Other Than Pensions. The Company adopted the disclosure provisions of SFAS 132, as
revised, as seen in Note 11, Employee Benefit Plans.
In December 2003, the FASB issued FASB Interpretation (“FIN”) No. 46 (Revised December 2003),
Consolidation of Variable Interest Entities. FIN 46, as revised, addresses consolidation by business enterprises of
variable interest entities. The Interpretation applies immediately for variable interest entities created after January
31, 2003, and to variable interest entities in which an enterprise obtains an interest after that date. For existing
variable interest entities or investments in such, FIN 46 applies in the first fiscal year or interim period beginning
after December 15, 2003. Adoption did not have a material effect on the consolidated financial statements of the
Company.
(3) Inventories
Inventories consist of the following:
September 30,
2004 2003
Raw materials .......................................... $ 47,882 $ 60,732
Work-in-process ........................................ 31,382 34,914
Finished goods .......................................... 185,462 123,608
$264,726 $219,254
(4) Property, Plant and Equipment
Property, plant and equipment consist of the following:
September 30,
2004 2003
Land, buildings and improvements .......................... $ 74,440 $ 51,195
Machinery, equipment and other ............................ 265,688 242,381
Construction in progress .................................. 15,231 7,857
355,359 301,433
Less accumulated depreciation ............................. 172,963 150,824
$182,396 $150,609
At September 30, 2004, assets held for sale totaling $8,289 were included in Prepaid expenses and other in
the Consolidated Balance Sheets. The majority of these assets are included in the Latin America segment.
65