Rayovac 2009 Annual Report Download - page 172

Table of Contents
Index to Financial Statements SPECTRUM BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
Effective October 1, 2008, the Company also adopted ASC Topic 825: “Financial Instruments,” formerly SFAS No. 159, “The Fair Value Option
for Financial Assets and Financial Liabilities−Including an amendment of FASB Statement No. 115,” (“ASC 825”), which permits an entity to measure
many financial instruments and certain other items at fair value by electing a fair value option. Once elected, the fair value option may be applied on an
instrument by instrument basis, is irrevocable and is applied only to entire instruments. ASC 825 also requires companies with trading and
available−for−sale securities to report the unrealized gains and losses for which the fair value option has been elected. The adoption of ASC 825 did not
have an effect the Company’s results of operations, financial position or cash flows as the Company did not elect the fair value option for any of its financial
instruments.
(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.
Amounts recorded in AOCI on the accompanying Consolidated Statements of Shareholders’ Equity (Deficit) and Comprehensive Income (Loss) for
Fiscal 2009, Fiscal 2008 and Fiscal 2007 are net of the following tax (benefit) expense amounts:
Pension
Adjustment Cash Flow Hedges Adjustment to Adopt ASC 715 Translation Adjustment Total
2009 (Successor Company) $ 678 $ (15) $ — $ 319 $ 982
2008 (Predecessor Company) (1,139) $ (4,765) — (318) (6,222)
2007 (Predecessor Company) (1,307) (3,747) 431 1,217 (3,406)
(w) Stock Compensation
In 1996, the Predecessor Company’s board of directors (“Predecessor Board”) approved the Rayovac Corporation 1996 Stock Option Plan (“1996 Plan”).
Under the 1996 Plan, stock options to acquire up to 2,318
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