Rayovac 2009 Annual Report Download - page 189

Table of Contents
Index to Financial Statements SPECTRUM BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
and $7,765 respectively that if recognized will affect the effective tax rate. The Company recognizes interest and penalties related to uncertain tax positions
in income tax expense. The Predecessor Company as of September 30, 2008 and August 30, 2009 the Successor Company as of September 30, 2009 had
approximately $1,856, $2,840, and $3,021, respectively of accrued interest and penalties related to uncertain tax positions. The impact related to interest and
penalties on the Consolidated Statements of Operations for the eleven months period ended August 30, 2009 (Predecessor Company) and the one month
period ended September 30, 2009 (Successor Company) was not material.
As of September 30, 2009, the Successor Company does not expect any significant changes in the unrecognized tax benefits within twelve months.
The following table summarizes the changes to the amount of unrecognized tax benefits of the Predecessor Company for the year ended
September 30, 2008, the eleven month period ended August 30, 2009 and the Successor Company for the one month period ended September 30, 2009:
Unrecognized tax benefits at October 1, 2007 (Predecessor Company) $7,259
Gross decrease – tax positions in prior period (271)
Gross increase – tax positions in current period 501
Settlements (734)
Unrecognized tax benefits at September 30, 2008 (Predecessor Company) 6,755
Gross increase – tax positions in prior period 26
Gross decrease – tax positions in prior period (11)
Gross increase – tax positions in current period 1,673
Lapse of statutes of limitations (807)
Unrecognized tax benefits at August 30, 2009 (Predecessor Company) 7,636
Gross decrease – tax positions in prior period (15)
Gross increase – tax positions in current period 174
Lapse of statutes of limitations (30)
Unrecognized tax benefits at September 30, 2009 (Successor Company) $7,765
The Company files income tax returns in the U.S. federal jurisdiction and various state, local and foreign jurisdictions and is subject to ongoing
examination by the various taxing authorities. The Company’s major taxing jurisdictions are the U.S. and Germany. In the U.S., federal tax filings for years
prior to and including the Company’s fiscal year ended September 30, 2005 are closed. However, the federal net operating loss carryforward from the
Company’s fiscal year ended September 30, 2005 is subject to Internal Revenue Service (“IRS”) examination until the year that such net operating loss
carryforward is utilized and that year is closed for audit. The Company’s fiscal years ended September 30, 2006, 2007 and 2008 remain open to examination
by the IRS. Filings in various U.S. state and local jurisdictions are also subject to audit and to date no significant audit matters have arisen.
The Company cannot predict the ultimate outcome of its current tax examinations. However, it is reasonably possible that during the next 12 months
some portion of previously unrecognized tax benefits could be recognized.
ASC 350 requires companies to test goodwill and indefinite−lived intangible assets for impairment annually, or more often if an event or
circumstance indicates that an impairment loss may have been incurred. During the
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