Rayovac 2014 Annual Report Download - page 121

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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 changes to the amount of unrecognized tax benefits for Fiscal 2014,
Fiscal 2013 and Fiscal 2012:
Unrecognized tax benefits at September 30, 2011 .......................... $ 9,013
Gross increase—tax positions in prior period ......................... 773
Gross decrease—tax positions in prior period ......................... (1,308)
Gross increase—tax positions in current period ....................... 776
Settlements .................................................... (1,737)
Lapse of statutes of limitations .................................... (1,640)
Unrecognized tax benefits at September 30, 2012 .......................... $ 5,877
Gross increase—tax positions in prior period ......................... 9,104
Gross decrease—tax positions in prior period ......................... (327)
Gross increase—tax positions in current period ....................... 516
Settlements .................................................... (15)
Lapse of statutes of limitations .................................... (1,348)
Unrecognized tax benefits at September 30, 2013 .......................... $13,807
Gross increase—tax positions in prior period ......................... 1,548
Gross decrease—tax positions in prior period ......................... (1,380)
Gross increase—tax positions in current period ....................... 714
Settlements .................................................... (2,515)
Lapse of statutes of limitations .................................... (841)
Unrecognized tax benefits at September 30, 2014 .......................... $11,333
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, 2010 are closed. However, the federal NOLs from
the Company’s fiscal years ended September 30, 2010 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, 2011, 2012, 2013 and 2014 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.
As of September 30, 2014, certain of the Company’s legal entities are undergoing income tax audits. The
Company cannot predict the ultimate outcome of the examinations; however, it is reasonably possible that during
the next twelve months some portion of previously unrecognized tax benefits could be recognized.
(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.
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