Rayovac 2008 Annual Report Download - page 144

Table of Contents
Index to Financial Statements
SPECTRUM BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
U.S. Dollar Term B Loan due March 30, 2013 with interest payable periodically but not less than quarterly at LIBOR plus 4.00%, a €262,000 senior secured
Euro Term Loan ($369,283 at September 30, 2008) due March 30, 2013 with interest payable periodically but not less than quarterly at Euro LIBOR plus 4.50%,
$2,873 of Senior Subordinated Notes due September 30, 2013 with interest payable semiannually at 8.5%, $347,012 of Senior Subordinated Notes due
October 2, 2013 with interest payable semiannually at 12.00% and $700,000 of Senior Subordinated Notes due February 1, 2015 with interest payable
semiannually at 7.375%. The total fair value of these Term Loams at September 30, 2008 was approximately $997,654. The total fair value of these Notes at
September 30, 2008 was approximately $521,874. (See also Note 2(r), Significant Accounting Policies—Derivative Financial Instruments, and Note 7, Debt).
The carrying amounts and fair values of the Company’s financial instruments are summarized as follows ((liability)/asset):
September 30,
2008 2007
Carrying
Amount Fair Value
Carrying
Amount Fair Value
Total debt $ (2,523,419) $ (1,647,320) $ (2,460,354) $ (2,256,202)
Interest rate swap agreements (5,813) (5,813) 1,986 1,986
Commodity swap and option agreements (11,320) (11,320) (1,636) (1,636)
Foreign exchange forward agreements 5,251 5,251 (8,974) (8,974)
(t) Environmental Expenditures
Environmental expenditures that relate to current ongoing operations or to conditions caused by past operations are expensed or capitalized as appropriate. The
Company determines its liability on a site-by-site basis and records a liability at the time when it is probable that a liability has been incurred and such liability
can be reasonably estimated. The estimated liability is not reduced for possible recoveries from insurance carriers. Estimated environmental remediation
expenditures are included in the determination of the net realizable value recorded for assets held for sale.
(u) Reclassifications
Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no effect on previously reported results
of operations or accumulated deficit.
(v) Comprehensive Income
Comprehensive income includes foreign currency translation of assets and liabilities of foreign subsidiaries, effects of exchange rate changes on intercompany
balances of a long-term nature and transactions designated as a hedge of net foreign investments, derivative financial instruments designated as cash flow hedges
and additional minimum pension liabilities associated with the Company’s pension. Except for the currency translation impact of the Company’s intercompany
debt of a long-term nature, the Company does not provide income taxes on currency translation adjustments, as earnings from international subsidiaries are
considered to be indefinitely reinvested.
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Source: Spectrum Brands, Inc, 10-K, December 10, 2008