Rayovac 2012 Annual Report Download - page 101

SPECTRUM BRANDS HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
(In thousands, except per share amounts)
(loss) per common share does not consider the effect of dilutive common stock equivalents. As long as their
effect is not anti-dilutive, diluted net income (loss) per common share reflects the dilution that would occur if
employee stock units and restricted stock awards were exercised or converted into common shares or resulted in
the issuance of common shares that then shared in the net income (loss) of the entity. The computation of diluted
net income (loss) per common share uses the “treasury stock” method to reflect dilution. The difference between
the number of shares used in the calculations of basic and diluted net income (loss) per share is due to the effects
of restricted stock and assumed conversion of employee stock unit awards.
Net income (loss) per common share is calculated based upon the following shares:
Year Ended
September 30,
2012
September 30,
2011
September 30,
2010
Basic ................................................... 51,608 51,092 36,000
Effect of restricted stock .................................... 1,701 — —
Diluted ................................................. 53,309 51,092 36,000
During Fiscal 2011 and Fiscal 2010, the Company has not assumed the exercise of common stock
equivalents as the impact would be antidilutive.
On June 16, 2010, the Company issued 20,433 shares of its common stock in conjunction with the Merger.
Additionally, all shares of its wholly owned subsidiary Spectrum Brands, were converted to shares of SB
Holdings on June 16, 2010. On July 20, 2011, the Company issued an additional 1,150 shares of its common
stock. See also, Note 15, Acquisitions, for additional discussion of the Merger.
(r) Environmental Expenditures
Environmental expenditures that relate to current ongoing operations or to conditions caused by past operations
are expensed or capitalized as appropriate. The Company determines its liability for environmental matters on a
site-by-site basis and records a liability at the time when it is probable that a liability has been incurred and such
liability can be reasonably estimated. The estimated liability is not reduced for possible recoveries from
insurance carriers. Estimated environmental remediation expenditures are included in the determination of the net
realizable value recorded for assets held for sale.
(s) Reclassifications
Certain prior year amounts have been reclassified to conform to the current year presentation. These
reclassifications had no effect on previously reported results of operations or accumulated deficit.
(t) Comprehensive Income
Comprehensive income includes foreign currency translation gains and losses on assets and liabilities of foreign
subsidiaries, effects of exchange rate changes on intercompany balances of a long-term nature and transactions
designated as a hedge of a net investment in a foreign subsidiary, deferred gains and losses on derivative
financial instruments designated as cash flow hedges and additional minimum pension liabilities associated with
the Company’s pension plans. Except for gains and losses resulting from exchange rate changes on intercompany
balances of a long-term nature, and prior to September 30, 2011, the Company did not provide income taxes on
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