Rayovac 2011 Annual Report Download - page 154

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SPECTRUM BRANDS HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
(In thousands, except per share amounts)
preliminary purchase price of $12,500, which includes a $1,476 sales earn out and a $500 manufacturing earn
out, has been allocated to the acquired net assets, including a $1,100 trade name intangible asset and $10,029 of
goodwill. The Company’s estimates and assumptions for this acquisition are subject to change as the Company
obtains additional information for its estimates during the respective measurement period. The primary areas of
the purchase price allocation that are not yet finalized relate to certain legal matters, income and non-income
based taxes and residual goodwill.
(16) Discontinued Operations
On November 11, 2008, the Predecessor Board approved the shutdown of the growing products portion of
the Home and Garden Business, which included the manufacturing and marketing of fertilizers, enriched soils,
mulch and grass seed. The decision to shutdown the growing products portion of the Home and Garden Business
was made only after the Predecessor Company was unable to successfully sell this business, in whole or in part.
The shutdown of the growing products portion of the Home and Garden Business was completed during the
second quarter of Fiscal 2009.
The presentation herein of the results of continuing operations has been changed to exclude the growing
products portion of the Home and Garden Business for all periods presented. The following amounts have been
segregated from continuing operations and are reflected as discontinued operations for Fiscal 2010, the period
from August 31, 2009 through September 30, 2009, and the period from October 1, 2008 through August 30,
2009, respectively:
Successor
Company
Predecessor
Company
2010
Period From
August 31, 2009
through
September 30,
2009
Period from
October 1, 2008
through
August 30,
2009
Net sales ................................................. $ — $— $31,306
(Loss) income from discontinued operations before income taxes .... $(2,512) $408 $(91,293)
Provision for income tax expense (benefit) ...................... 223 — (4,491)
(Loss) income from discontinued operations, net of tax ............ $(2,735) $408 $(86,802)
The Company did not record any (loss) income from discontinued operations in Fiscal 2011.
(17) New Accounting Pronouncements
Recently Adopted Accounting Guidance
Variable Interest Entities
In June 2009, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance
requiring an enterprise to perform an analysis to determine whether the enterprise’s variable interest or interests
give it a controlling financial interest in a variable interest entity. The new guidance also requires enhanced
disclosures that will provide users of financial statements with more transparent information about an enterprise’s
involvement in a variable interest entity. The Company adopted the new guidance on October 1, 2010 and the
adoption did not impact the Company’s financial statements and related disclosures.
144