Rayovac 2010 Annual Report Download - page 150

SPECTRUM BRANDS HOLDINGS, 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
September 30,
2010 2009
Current deferred tax assets:
Employee benefits ................................................... $ 21,770 $ 20,908
Restructuring ....................................................... 6,486 11,396
Inventories and receivables ............................................ 13,484 9,657
Marketing and promotional accruals ..................................... 5,783 5,458
Other .............................................................. 22,712 13,107
Valuation allowance .................................................. (28,668) (16,413)
Total current deferred tax assets ............................................. 41,567 44,113
Current deferred tax liabilities:
Inventory ........................................................... (1,947) (11,560)
Other .............................................................. (3,885) (4,416)
Total current deferred tax liabilities .......................................... (5,832) (15,976)
Net current deferred tax assets .............................................. $ 35,735 $ 28,137
Noncurrent deferred tax assets:
Employee benefits ................................................... $ 17,599 $ 3,564
Restructuring and purchase accounting ................................... 20,541 26,921
Marketing and promotional accruals ..................................... 1,311 845
Net operating loss and credit carry forwards ............................... 513,779 291,642
Prepaid royalty ...................................................... 9,708 14,360
Property, plant and equipment .......................................... 3,207 2,798
Unrealized losses .................................................... 4,202 —
Other .............................................................. 14,335 17,585
Valuation allowance .................................................. (302,268) (116,275)
Total noncurrent deferred tax assets .......................................... 282,414 241,440
Noncurrent deferred tax liabilities:
Property, plant, and equipment .......................................... (13,862) (19,552)
Unrealized gains ..................................................... — (15,275)
Intangibles ......................................................... (544,478) (430,815)
Other .............................................................. (1,917) (3,296)
Total noncurrent deferred tax liabilities ....................................... (560,257) (468,938)
Net noncurrent deferred tax liabilities ........................................ $(277,843) $(227,498)
Net current and noncurrent deferred tax liabilities ............................... $(242,108) $(199,361)
During Fiscal 2010, the Company recorded residual U.S. and foreign taxes on approximately $26,600 of
distributions of foreign earnings resulting in an increase in tax expense of approximately $9,312. The
distributions were primarily non-cash deemed distributions under U.S. tax law. During the period from
August 31, 2009 through September 30, 2009, the Successor Company recorded residual U.S. and foreign taxes
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