Rayovac 2012 Annual Report Download - page 141

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SPECTRUM BRANDS HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
(In thousands, except per share amounts)
(16) New Accounting Pronouncements
Fair Value Measurement
In May 2011, the Financial Accounting Standards Board (the “FASB”) issued amended accounting guidance
to achieve a consistent definition of and common requirements for measurement of and disclosure concerning
fair value between GAAP and International Financial Reporting Standards. This amended guidance was effective
for the Company beginning in the second quarter of its fiscal year ended September 30, 2012. The new
accounting guidance did not have a material effect on the Company’s consolidated financial statements.
Presentation of Comprehensive Income
In June 2011, the FASB issued new accounting guidance which requires entities to present net income and
other comprehensive income in either a single continuous statement or in two separate, but consecutive,
statements of net income and other comprehensive income. This accounting guidance is effective for the
Company for the fiscal year beginning October 1, 2012. Early adoption is permitted. The Company is currently
evaluating the impact of this new accounting guidance on its consolidated financial statements.
Impairment Testing
During September 2011, the FASB issued new accounting guidance intended to simplify how an entity tests
goodwill for impairment. The guidance will allow an entity to first assess qualitative factors to determine
whether it is necessary to perform the two-step quantitative goodwill impairment test. An entity will no longer be
required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative
assessment, that it is more likely than not that its fair value is less than its carrying amount. This accounting
guidance is effective for the Company for the annual and any interim goodwill impairment tests performed for
the fiscal year beginning October 1, 2012. Early adoption is permitted. The Company does not expect the
adoption of this guidance to have a significant impact on its consolidated financial statements.
Additionally, in July 2012, the FASB issued new accounting guidance intended to simplify how an entity
tests indefinite-lived intangible assets for impairment. The guidance will allow an entity to first assess qualitative
factors to determine whether it is necessary to perform the quantitative impairment test. An entity will no longer
be required to calculate the fair value of an indefinite-lived intangible asset unless the entity determines, based on
a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. This
accounting guidance is effective for the Company for the annual and any interim indefinite-lived intangible asset
impairment tests performed for the fiscal year beginning October 1, 2012. Early adoption is permitted. The
Company does not expect the adoption of this guidance to have a significant impact on its consolidated financial
statements.
(17) Subsequent Events
ASC 855, “Subsequent Events,” (“ASC 855”), establishes general standards of accounting and disclosure of
events that occur after the balance sheet date but before financial statements are issued or are available to be
issued. ASC 855 requires the Company to evaluate events that occur after the balance sheet date through the date
the Company’s financial statements are issued, and to determine whether adjustments to or additional disclosures
in the financial statements are necessary. The Company has evaluated subsequent events through the date these
financial statements were issued.
Hardware Acquisition and Acquisition Financing
On October 8, 2012, the Company entered into an agreement (the “Acquisition Agreement”) with Stanley
Black & Decker to acquire the HHI Business currently operated by Stanley Black & Decker and certain of its
subsidiaries for $1,400,000, consisting of (i) the equity interests of certain subsidiaries of Stanley Black &
131