Rayovac 2012 Annual Report Download - page 125

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SPECTRUM BRANDS HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
(In thousands, except per share amounts)
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., United Kingdom, and Germany. In the U.S., federal tax filings for years prior to
and including the Company’s fiscal year ended September 30, 2008 are closed. However, the federal net
operating loss carryforwards from the Company’s fiscal years ended September 30, 2008 and prior are subject to
Internal Revenue Service (“IRS”) examination until the year that such net operating loss carryforwards are
utilized and those years are closed for audit. The Company’s fiscal years ended September 30, 2009, 2010, 2011
and 2012 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.
In the U.S., federal tax filings for years prior to and including Russell Hobbs year ended June 30, 2008 are
closed. However, the federal net operating loss carryforwards for Russell Hobbs fiscal years ended June 30, 2008
and prior are subject to examination by the IRS until the year that such net operating losses are utilized and those
years are closed for audit.
During Fiscal 2011 we recorded the correction of an immaterial prior period error in our consolidated
financial statements related to the effective state income tax rates for certain U.S. subsidiaries. During Fiscal
2010 we recorded the correction of an immaterial prior period error in our consolidated financial statements
related to deferred taxes in certain foreign jurisdictions. We believe the correction of these errors to be both
quantitatively and qualitatively immaterial to our annual results for Fiscal 2011, Fiscal 2010 or to the financial
statements of any previous period. The impact of the corrections was an increase to income tax expense and an
increase to deferred tax liabilities in Fiscal 2011 of approximately $4,873 and an increase to income tax expense
and a decrease to deferred tax assets in Fiscal 2010 of approximately $5,900.
(10) Employee Benefit Plans
Pension Benefits
The Company has various defined benefit pension plans covering some of its employees in the United States and
certain employees in other countries, primarily the United Kingdom and Germany. Plans generally provide
benefits of stated amounts for each year of service. The Company funds its U.S. pension plans in accordance with
the requirements of the defined benefit pension plans and, where applicable, in amounts sufficient to satisfy the
minimum funding requirements of applicable laws. Additionally, in compliance with the Company’s funding
policy, annual contributions to non-U.S. defined benefit plans are equal to the actuarial recommendations or
statutory requirements in the respective countries.
The Company also sponsors or participates in a number of other non-U.S. pension arrangements, including
various retirement and termination benefit plans, some of which are covered by local law or coordinated with
government-sponsored plans, which are not significant in the aggregate and therefore are not included in the
information presented below. The Company also has various nonqualified deferred compensation agreements
with certain of its employees. Under certain of these agreements, the Company has agreed to pay certain amounts
annually for the first 15 years subsequent to retirement or to a designated beneficiary upon death. It is
management’s intent that life insurance contracts owned by the Company will fund these agreements. Under the
remaining agreements, the Company has agreed to pay such deferred amounts in up to 15 annual installments
beginning on a date specified by the employee, subsequent to retirement or disability, or to a designated
beneficiary upon death.
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