Rayovac 2008 Annual Report Download - page 56

Table of Contents
Index to Financial Statements
in Fiscal 2007 while depreciation and amortization expense of $15 million was recorded during Fiscal 2006. From October 1, 2006 through September 30, 2007,
the U.S. division of our Home and Garden Business was designated as discontinued operations. In accordance with generally excepted accounting principles,
while designated as discontinued operations we ceased recording depreciation and amortization expense associated with the assets of this business. During Fiscal
2006 there was depreciation and amortization of approximately $15 million since the U.S. division of our Home and Garden Business was classified as a
continuing operation.
Segment assets as of September 30, 2007 decreased to $548 million from $692 million at September 30, 2006. The decrease is primarily attributable to the
non-cash impairment of goodwill in Fiscal 2007. See “Goodwill and Intangibles Impairment” below as well as Note 2(i), Significant Accounting Policies and
Practices—Intangible Assets, of Notes to Consolidated Financial Statements included in this Annual Report on Form 10-K for additional information regarding
this impairment charge and the amount attributable to Home and Garden. Goodwill and intangible assets as of September 30, 2007 total approximately $374
million and primarily relate to the acquisition of United.
Corporate Expense. Our corporate expense in Fiscal 2007 increased to $47 million from $41 million in Fiscal 2006. The increase in expense for Fiscal
2007 is due to professional fees incurred in connection with our strategic decision to dispose of the Home and Garden Business, increased management incentive
compensation expense accruals related to the achievement of current year bonus targets and increased compensation expense related to certain global long-term
incentive plans. No such accruals for management incentive compensation expense were included in corporate expense in Fiscal 2006 as performance measures
were not achieved. These increases in Fiscal 2007 were somewhat offset by savings associated with the global realignment announced in January 2007 and a
curtailment gain of approximately $2 million related to the termination of a U.S. post-retirement benefit plan. Our corporate expense as a percentage of net sales
in Fiscal 2007 increased to 1.8% from 1.7% in Fiscal 2006.
Restructuring and Related Charges. See Note 16, Restructuring and Related Charges of Notes to Consolidated Financial Statements, included in this
Annual Report on Form 10-K for additional information regarding our restructuring and related charges.
51
Source: Spectrum Brands, Inc, 10-K, December 10, 2008