Rayovac 2009 Annual Report Download - page 187

Table of Contents
Index to Financial Statements SPECTRUM BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
The tax effects of temporary differences, which give rise to significant portions of the deferred tax assets and deferred tax liabilities, are as follows:
Successor
Company Predecessor Company
September 30,
2009 2008
Current deferred tax assets:
Employee benefits $ 20,908 $ 4,545
Restructuring 11,396 1,460
Inventories and receivables 9,657 14,035
Marketing and promotional accruals 5,458 3,788
Foreign currency hedges — 3,800
Other 13,107 18,313
Valuation allowance (16,413) (26,544)
Total current deferred tax assets 44,113 19,397
Current deferred tax liabilities:
Inventory (11,560) (1,143)
Other (4,416) (4,297)
Total current deferred tax liabilities (15,976) (5,440)
Net current deferred tax assets $ 28,137 $ 13,957
Noncurrent deferred tax assets:
Employee benefits $ 3,564 $ 7,398
Restructuring and purchase accounting 26,921 13,335
Marketing and promotional accruals 845 932
Net operating loss and credit carry forwards 291,642 447,329
Prepaid royalty 14,360 —
Property, plant and equipment 2,798 —
Other 17,585 10,729
Valuation allowance (116,275) (469,426)
Total noncurrent deferred tax assets 241,440 10,297
Noncurrent deferred tax liabilities:
Property, plant, and equipment (19,552) (22,778)
Unrealized gains (15,275) (4,044)
Intangibles (430,815) (93,749)
Other (3,296) (4,400)
Total noncurrent deferred tax liabilities (468,938) (124,971)
Net noncurrent deferred tax liabilities $(227,498) $(114,674)
Net current and noncurrent deferred tax liabilities $(199,361) $ (100,717)
The Successor Company recorded residual U.S. and foreign taxes on approximately $165,937 of actual and deemed distributions of foreign earnings
resulting in an increase in tax expense of approximately $58,295. The Company made these distributions, which were primarily non−cash distributions, to
reduce the current year U.S. tax loss associated with Internal Revenue Code (“IRC”) Section 382 restrictions. Remaining undistributed earnings of
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