Rayovac 2009 Annual Report Download - page 175

Table of Contents
Index to Financial Statements SPECTRUM BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
(x) Restructuring and Related Charges
Restructuring charges are recognized and measured according to the provisions of ASC Topic 420: “Exit or Disposal Cost Obligations,” formerly
SFAS No. 146, “Accounting for Costs Associated with Exit or Disposal Activities” (“ASC 420”). Under ASC 420, restructuring charges include, but are not
limited to, termination and related costs consisting primarily of one−time termination benefits such as severance costs and retention bonuses, and contract
termination costs consisting primarily of lease termination costs. Related charges, as defined by the Company, include, but are not limited to, other costs
directly associated with exit and integration activities, including impairment of property and other assets, departmental costs of full−time incremental
integration employees, and any other items related to the exit or integration activities. Costs for such activities are estimated by management after evaluating
detailed analyses of the cost to be incurred. The Company presents restructuring and related charges on a combined basis. (See also Note 15, Restructuring
and Related Charges, for a more complete discussion of restructuring initiatives and related costs).
(y) Adoption of New Accounting Pronouncements
Business Combinations
In December 2007, the FASB issued new accounting guidance on business combinations and non−controlling interests in consolidated financial
statements. The objective is to improve the relevance, representational faithfulness and comparability of the information that a reporting entity provides in
its financial reports about a business combination and its effects. The guidance applies to all transactions or other events in which an entity (the “acquirer”)
obtains control of one or more businesses (the “acquiree”), including those sometimes referred to as “true mergers” or “mergers of equals” and
combinations achieved without the transfer of consideration. In April 2009, the FASB issued additional guidance which addresses application issues arising
from contingencies in a business combination. The new guidance is effective for the Company’s financial statements for the fiscal year that began
October 1, 2009. The Company will adopt the new guidance prospectively as applicable.
Noncontrolling Interests in Consolidated Financial Statements
In December 2007, the FASB issued new accounting and reporting standards for the noncontrolling interest in a subsidiary and for the
deconsolidation of a subsidiary. The new guidance also changes the way the consolidated financial statements are presented, establishes a single method of
accounting for changes in a parent’s ownership interest in a subsidiary that do not result in deconsolidation, requires that a parent recognize a gain or loss in
net income when a subsidiary is deconsolidated and expands disclosures in the consolidated financial statements that clearly identify and distinguish
between the parent’s ownership interest and the interest of the noncontrolling owners of a subsidiary. The provisions are to be applied prospectively as of
the beginning of the fiscal year in which the guidance is adopted, except for the presentation and disclosure requirements, which are to be applied
retrospectively for all periods presented. The new guidance is effective for the Company’s financial statements for the fiscal year that began October 1,
2009. The Company is in the process of evaluating the impact that the guidance may have on its financial statements and related disclosures.
Determination of the Useful Life of Intangible Assets
In April 2008, the FASB issued new accounting guidance which amends the list of factors an entity should consider in developing renewal or
extension assumptions used in determining the useful life of recognized intangible assets. The new guidance applies to: (a) intangible assets that are
acquired individually or with a group
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