Rayovac 2007 Annual Report Download - page 13

SPECTRUM BRANDS | 2007 ANNUAL REPORT 11SPECTRUM BRANDS | 2007 ANNUAL REPORT 11
SELECTED FINANCIAL DATA (Continued)
Spectrum Brands, Inc.
(1) Fiscal 2007 includes restructuring and related charges – cost of goods sold of $31.3 million, and restructuring and related charges – operating expenses
of $59.7 million. See Note 16, Restructuring and Related Charges, of Notes to Consolidated Financial Statements included in this Annual Report on Form
10-K for further discussion.
(2) Fiscal 2006 includes restructuring and related charges – cost of goods sold of $22.5 million, and restructuring and related charges – operating expenses
of $12.2 million. See Note 16, Restructuring and Related Charges, of Notes to Consolidated Financial Statements included in this Annual Report on Form
10-K for further discussion.
(3) Fiscal 2005 selected financial data was impacted by two significant acquisitions completed during the fiscal year. The United acquisition was completed
on February 7, 2005 and the Tetra acquisition was completed on April 29, 2005. See further discussion of these acquisitions in Item 1: Business, and in
Note 17, Acquisitions, of Notes to Consolidated Financial Statements included in this Annual Report on Form 10-K.
Fiscal 2005 includes restructuring and related charges – cost of goods sold of $10.5 million, and restructuring and related charges – operating expenses
of $6.2 million. See Note 16, Restructuring and Related Charges, of Notes to Consolidated Financial Statements included in this Annual Report on Form
10-K for further discussion.
(4) Fiscal 2004 selected financial data was impacted by two acquisitions completed during the fiscal year. The Ningbo Baowang Battery Company, Ltd.
acquisition was completed on March 31, 2004 and the Microlite acquisition was completed on May 28, 2004.
Fiscal 2004 includes restructuring and related charges – cost of goods sold of $(0.8) million, and restructuring and related charges – operating expenses
of $12.2 million. See Note 16, Restructuring and Related Charges, of Notes to Consolidated Financial Statements included in this Annual Report on Form
10-K for further discussion.
(5) Fiscal 2003 selected financial data was impacted by two acquisitions completed during the fiscal 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 (9) below.
(6) During Fiscal 2007 and Fiscal 2006, 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, with the assistance of independent third-party valuation specialists,
conducted our annual impairment testing of goodwill and indefinite-lived intangible assets. As a result of these analyses we recorded non-cash pretax
impairment charges of approximately $238 million and $433.0 million in Fiscal 2007 and Fiscal 2006, respectively. See the “Critical Accounting Policies
– Valuation of Assets and Asset Impairment” section of Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
as well as Note 2(i), Significant Accounting Policies – Intangible Assets, of Notes to Consolidated Financial Statements included in this Annual Report on
Form 10-K for further details on these impairment charges.
(7) Fiscal 2007 loss from discontinued operations, net of tax, includes a non-cash pretax impairment charge of approximately $169 million to reduce the
carrying value of certain assets, principally consisting of goodwill and intangible assets, relating to our Home and Garden Business in order to reflect the
estimated fair value of this business. See Note 5, Assets Held for Sale, and Note 11, Discontinued Operations, of Notes to Consolidated Financial Statements
included in this Annual Report on Form 10-K for information relating to this impairment charge.
(8) Fiscal 2007 income tax expense of $55.7 million includes a non-cash charge of approximately $180.1 million which increased the valuation allowance
against certain net deferred tax assets.
(9) Fiscal 2006 income tax benefit of $22.7 million includes a non-cash charge of approximately $29.3 million which increased the valuation allowance
against certain net deferred tax assets.
(10) Fiscal 2006 includes a $7.9 million net gain on the sale of our Bridgeport, Connecticut manufacturing facility, acquired as part of the Remington acquisi-
tion and subsequently closed in Fiscal 2004, and our Madison, Wisconsin packaging facility, which was closed in our fiscal year ended September 30, 2003
(“Fiscal 2003”).
SFAS No. 145, “Recission of FASB Statement Nos. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections” (“SFAS 145”) addresses,
among other things, the income statement presentation of gains and losses related to debt extinguishments and requires such expenses to no longer be treated
as extraordinary items, unless the items meet the definition of extraordinary per Accounting Principles Board (“APB”) Opinion No. 30. We adopted SFAS
145 on October 1, 2002. As a result, in Fiscal 2003 we recorded a non-operating expense of $3.1 million for the write-off of unamortized debt issuance costs
associated with the replacement of our previous credit facility in October 2002.
(11) Amounts reflect the results of continuing operations only.
(12) Working capital is defined as current assets less current liabilities. Fiscal 2007 working capital includes assets held for sale of $564.2 million related to
our Home and Garden Business which has been designated as discontinued operations. See Note 5, Assets Held for Sale, of Notes to Consolidated Financial
Statements included in this Annual Report on Form 10-K for information relating to assets held for sale.