Rayovac 2005 Annual Report Download - page 103

Download and view the complete annual report

Please find page 103 of the 2005 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 134

  • 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
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134

A summary of the status of the Company’s stock option plans is as follows:
2005 2004 2003
Weighted Weighted Weighted
Average Average Average
Exercise Exercise Exercise
Options Price Options Price Options Price
Outstanding, beginning of period 3,300 $14.56 4,923 $13.55 4,105 $14.01
Granted – – 294 16.16 1,210 12.31
Exercised (1,276) 14.44 (1,783) 11.85 (40) 4.39
Forfeited (36) 14.03 (134) 17.04 (352) 15.73
Outstanding, end of period 1,988 $14.64 3,300 $14.56 4,923 $13.55
Options exercisable, end of period 1,467 $14.97 1,995 $15.09 2,553 $12.91
The following table summarizes information about options outstanding and outstanding and exercisable
as of September 30, 2005:
Options Outstanding Options Outstanding and Exercisable
Weighted Weighted Weighted
Average Average Average
Range of Number of Remaining Exercise Number of Exercise
Exercise Prices Shares Contractual Life Price Shares Price
$4.39 149 0.95 years $ 4.39 149 $ 4.39
$11.32 – $15.00 1,339 6.69 13.40 856 13.67
$16.19 – $21.50 222 3.28 18.82 200 18.66
$21.63 – $28.70 278 3.84 22.78 262 22.46
1,988 5.48 $14.64 1,467 $14.97
See Note 7, Shareholders’ Equity, for information on grants and forfeitures of restricted shares during 2005,
2004 and 2003.
(9) Income Taxes
Income tax expense was calculated based upon
the following components of income from continuing
operations before income tax:
2005 2004 2003
Pretax income (loss):
United States $ (9,275) $(10,365) $(52,456)
Outside the United States 80,558 100,897 75,491
Total pretax income $71,283 $ 90,532 $ 23,035
The components of income tax expense (benefi t)
are as follows:
2005 2004 2003
Current:
Federal $ – $ (2,827) $ (8,817)
Foreign 35,090 30,300 25,697
State 1,700 174 206
Total current 36,790 27,647 17,086
Deferred:
Federal (6,330) 8,522 2,165
Foreign (3,775) 1,106 (9,356)
State (2,234) (2,903) (2,342)
Total deferred (12,339) 6,725 (9,533)
Income tax expense $24,451 $34,372 $ 7,553
The following reconciles the Federal statutory
income tax rate with the Company’s effective tax rate:
2005 2004 2003
Statutory federal income tax rate 35.0% 35.0% 35.0%
Foreign Sales Corporation/
Extraterritorial Income
Exclusion benefit (0.4) (0.2) (1.5)
Non U.S. permanent items 3.0 1.7 7.0
Foreign statutory rate
vs. U.S. statutory rate (1.4) (0.9) 6.6
State income taxes and other (1.8) (3.3) (6.0)
R&D credit, current and prior years (1.2) (0.6) (7.2)
Net (deductible) nondeductible
interest expense (4.3) 1.2 5.7
Adjustment of prior year taxes (0.2) 3.0 (7.5)
Valuation allowance 2.3 2.0 –
Other
3.3 0.1 0.7
34.3% 38.0% 32.8%
2005 Form 10-K Annual Report
Spectrum Brands, Inc.
2005 ANNUAL REPORT 83