Rayovac 2005 Annual Report Download - page 37

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(3) Fiscal 2003 selected fi nancial data is impacted by two acquisitions completed during the fi scal year. The VARTA acquisition was completed on October 1, 2002 and the Remington acquisition
was completed on September 30, 2003.
Fiscal 2003 includes restructuring and related charges – cost of goods sold of $21.1 million, and restructuring and related charges – operating expenses of $11.5 million. Fiscal 2003 also
includes a non-operating expense of $3.1 million discussed in (8) below. See Note 15, Restructuring and Related Charges, of the Notes to Consolidated Financial Statements included in this
Annual Report on Form 10-K for further discussion.
(4) Fiscal 2002 includes restructuring and related charges – cost of goods sold of $1.2 million.
(5) Fiscal 2001 includes restructuring and related charges – cost of goods sold of $22.1 million, and restructuring and related charges – operating expenses of $0.2 million. Fiscal 2001 also
includes a non-operating expense of $8.6 million discussed in (8) below.
(6) Certain reclassifi cations have been made to refl ect the adoption of the Emerging Issues Task Force (“EITF”) No. 01-09, “Accounting for Consideration Given by a Vendor to a Customer
(Including a Reseller of the Vendor’s Products),” for periods prior to adoption in fi scal 2002. EITF 01-09 addresses the recognition, measurement and income statement classifi cation of various
types of sales incentives, either as a reduction to revenue or as an expense. Concurrent with the adoption of EITF 01-09, we reclassifi ed certain accrued trade incentives as a contra receivable
versus our previous presentation as a component of accounts payable.
(7) Pursuant to Statement of Financial Accounting Standards (“SFAS”) No. 142, “Goodwill and Other Intangible Assets” (“SFAS 142”), issued by the Financial Accounting Standards Board
(“FASB”), we ceased amortizing goodwill on October 1, 2001. Upon initial application of SFAS 142, we reassessed the useful lives of our intangible assets and deemed only the trade name
to have an indefi nite useful life because it is expected to generate cash fl ows indefi nitely. Based on this, we ceased amortizing the trade name on October 1, 2001. Goodwill amortization
of $1.1 million and trade name amortization expense of $2.3 million are included in depreciation and amortization for 2001.
(8) SFAS No. 145, “Recission of FASB Statement Nos. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections,” (“SFAS 142”) which addresses, among other things, the
income statement presentation of gains and losses related to debt extinguishments, requires such expenses to no longer be treated as extraordinary items, unless the items meet the defi nition
of extraordinary per Accounting Principles Board (“APB”) Opinion No. 30. We adopted SFAS 145 on October 1, 2002. As a result, we recorded non-operating expenses within income before
income taxes as follows during the fi scal years ended September 30, 2003 and 2001:
In fi scal 2003, a non-operating expense of $3.1 million was recorded for the write-off of unamortized debt issuance costs associated with the replacement of our previous credit facility in
October 2002.
In fi scal 2001, a non-operating expense of $8.6 million was recorded for the premium on the repurchase of $65.0 million of our senior subordinated notes and related write-off of
unamortized debt issuance costs in connection with a primary offering of our common stock in June 2001.
(9) Working capital is defi ned as current assets less current liabilities.
2005 Form 10-K Annual Report
Spectrum Brands, Inc.
2005 ANNUAL REPORT 17