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SPECTRUM BRANDS HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
(Amounts in thousands, except per share figures)
The following table summarizes the impact of derivative instruments on the accompanying Consolidated
Statement of Operations for Fiscal 2012, pretax:
Derivatives in ASC 815 Cash Flow
Hedging Relationships
Amount of
Gain (Loss)
Recognized in
AOCI on
Derivatives
(Effective Portion)
Location of
Gain (Loss)
Reclassified from
AOCI into
Income
(Effective Portion)
Amount of
Loss
Reclassified from
AOCI into Income
(Effective Portion)
Location of
Loss
Recognized in
Income on
Derivatives
(Ineffective
Portion and
Amount
Excluded from
Effectiveness
Testing)
Amount of
Gain
Recognized in
Income on
Derivatives
(Ineffective Portion
and Amount
Excluded from
Effectiveness Testing)
Commodity contracts ................ $1,606 Cost of goods sold $(1,148) Cost of goods sold $ 94
Interest rate contracts ................ 15 Interest expense (864) Interest expense —
Foreign exchange contracts ........... 61 Netsales (474) Net sales —
Foreign exchange contracts ........... (3,506) Cost of goods sold (611) Cost of goods sold —
Total ......................... $(1,824) $(3,097) $ 94
The following table summarizes the impact of derivative instruments on the accompanying Consolidated
Statement of Operations for Fiscal 2011, pretax:
Derivatives in ASC 815 Cash Flow
Hedging Relationships
Amount of Loss
Recognized in
AOCI on
Derivatives
(Effective Portion)
Location of
Loss
Reclassified from
AOCI into
Income
(Effective Portion)
Amount of
Gain (Loss)
Reclassified from
AOCI into Income
(Effective Portion)
Location of
Gain (Loss)
Recognized in
Income on
Derivatives
(Ineffective
Portion and
Amount
Excluded from
Effectiveness
Testing)
Amount of
Loss
Recognized in
Income on
Derivatives
(Ineffective Portion
and Amount
Excluded from
Effectiveness Testing)
Commodity contracts ................ $(1,750) Cost of goods sold $ 2,617 Cost of goods sold $ (47)
Interest rate contracts ................ (88) Interest expense (3,319) Interest expense (205)(A)
Foreign exchange contracts ........... (487) Net sales (131) Net sales —
Foreign exchange contracts ........... (3,667) Cost of goods sold (12,384) Cost of goods sold —
Total ......................... $(5,992) $(13,217) $(252)
(A) Reclassified from AOCI associated with the prepayment of portions of the Senior Credit Facility.
Other Changes in Fair Value of Derivative Contracts
For derivative instruments that are used to economically hedge the fair value of the Company’s third party
and intercompany foreign currency payments, commodity purchases and interest rate payments, the gain (loss)
associated with the derivative contract is recognized in earnings in the period of change. During Fiscal 2013,
Fiscal 2012 and Fiscal 2011, the Company recognized the following gains (losses) on these derivative contracts:
Derivatives Not Designated as
Hedging Instruments Under ASC 815
Amount of (Loss) Gain
Recognized in
Income on Derivatives Location of (Loss) or Gain
Recognized in
Income on Derivatives2013 2012 2011
Commodity contracts .............................. $ (55) $ — $ — Cost of goods sold
Foreign exchange contracts ......................... (3,597) 5,916 (5,052) Other expense, net
Total ....................................... $(3,652) $5,916 $(5,052)
102