Rayovac 2013 Annual Report Download - page 118

SPECTRUM BRANDS HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
(Amounts in thousands, except per share figures)
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and
deferred tax liabilities are as follows:
September 30,
2013 2012
Current deferred tax assets:
Employee benefits ................................................... $ 11,372 $ 16,399
Restructuring ....................................................... 7,085 8,054
Inventories and receivables ............................................ 24,296 22,495
Marketing and promotional accruals ..................................... 14,146 8,270
Other .............................................................. 23,261 14,440
Valuation allowance .................................................. (32,342) (29,808)
Total current deferred tax assets ............................................. $ 47,818 $ 39,850
Current deferred tax liabilities:
Inventories and receivables ............................................ (2,748) (2,618)
Unrealized gains ..................................................... (373) (1,153)
Other .............................................................. (11,738) (7,936)
Total current deferred tax liabilities .......................................... $ (14,859) $ (11,707)
Net current deferred tax assets .............................................. $ 32,959 $ 28,143
Noncurrent deferred tax assets:
Employee benefits ................................................... $ 35,578 $ 34,927
Restructuring and purchase accounting ................................... 340 371
Net operating loss and credit carry forwards ............................... 668,679 572,857
Prepaid royalty ...................................................... 6,956 7,006
Property, plant and equipment .......................................... 9,692 3,255
Unrealized losses .................................................... 2,136 2,521
Long-term debt ...................................................... 668 3,976
Intangibles ......................................................... 3,917 4,282
Other .............................................................. 5,268 7,866
Valuation allowance .................................................. (422,244) (354,992)
Total noncurrent deferred tax assets .......................................... $310,990 $ 282,069
Noncurrent deferred tax liabilities:
Property, plant, and equipment .......................................... (27,478) (15,337)
Unrealized gains ..................................................... (13,126) (15,803)
Intangibles ......................................................... (735,506) (596,199)
Taxes on unremitted foreign earnings .................................... (18,581) (29,231)
Other .............................................................. (9,073) (2,964)
Total noncurrent deferred tax liabilities ....................................... $(803,764) $(659,534)
Net noncurrent deferred tax liabilities ........................................ $(492,774) $(377,465)
Net current and noncurrent deferred tax liabilities ............................... $(459,815) $(349,322)
In Fiscal 2012, the Company began recording residual U.S. and foreign taxes on foreign earnings as a result
of its change in position regarding future repatriation and the requirements of ASC 740. To the extent necessary,
the Company intends to utilize earnings of foreign subsidiaries in order to support management’s plans to
voluntarily accelerate pay down of U.S. debt, fund distributions to shareholders, fund U.S. acquisitions, and
satisfy ongoing U.S. operational cash flow requirements. As a result, earnings of the Company’s non-U.S.
subsidiaries after September 30, 2011 are generally not considered to be permanently reinvested, except in
jurisdictions where repatriation is either precluded or restricted by law. The Company annually estimates the
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