Rayovac 2008 Annual Report Download - page 51

Table of Contents
Index to Financial Statements
The following amounts related to the Canadian division of the Home and Garden Business have been segregated from continuing operations and are
reflected as discontinued operations during Fiscal 2008 and Fiscal 2007, respectively:
2008(A) 2007
Net sales $ 4.7 $ 88.7
Loss from discontinued operations before income taxes $ (1.9) $ (46.3)
Provision for income tax benefit (0.7) (6.3)
Loss from discontinued operations, net of tax $ (1.2) $ (40.0)
(A) Fiscal 2008 represents results from discontinued operations from October 1, 2007 through November 1, 2007, the date of sale. Included in the Fiscal 2008
loss is a loss on disposal of $1.1 million, net of tax benefit.
In accordance with SFAS 144, long-lived assets to be disposed of by sale are recorded at the lower of their carrying value or fair value less costs to sell.
During Fiscal 2007, we recorded a non-cash pretax charge of $45 million in discontinued operations to reduce the carrying value of certain assets, principally
consisting of goodwill and intangible assets, related to the Canadian Home and Garden Business in order to reflect the estimated fair value of this business.
Fiscal Year Ended September 30, 2007 Compared to Fiscal Year Ended September 30, 2006
Highlights of consolidated operating results
During Fiscal 2007 and Fiscal 2006, we have presented the Canadian division of our Home and Garden Business as discontinued operations. The Canadian
division of our Home and Garden Business was sold on November 1, 2007. See Note 11, Discontinued Operations of Notes to Consolidated Financial
Statements, included in this Annual Report on Form 10-K for additional information regarding the sale of the Canadian division of our Home and Garden
Business. As a result, and unless specifically stated, all discussions regarding Fiscal 2007 and Fiscal 2006 only reflect results from our continuing operations.
Net Sales. Net sales for Fiscal 2007 increased to $2,565 million from $2,462 million in Fiscal 2006, a 4.2% increase. The following table details the
principal components of the change in net sales from Fiscal 2006 to Fisca1 2007 (in millions):
Net Sales
Fiscal 2006 Net Sales $ 2,462
Increase in Pet supplies sales 11
Increase in Global Batteries & Personal Care Remington branded product sales 37
Increase in Household Insect Control product sales 11
Decrease in Global Batteries & Personal Care alkaline battery sales (17)
Decrease in Lawn and Garden product sales (8)
Foreign currency impact, net 66
Other, net 3
Fiscal 2007 Net Sales $ 2,565
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Source: Spectrum Brands, Inc, 10-K, December 10, 2008