Rayovac 2014 Annual Report Download - page 49

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(1) Pursuant to the guidance in Financial Accounting Standards Board Accounting Standards Codification
Topic 350: “Intangibles-Goodwill and Other,” we conduct annual impairment testing of goodwill and
indefinite-lived intangible assets. As a result of these analyses we recorded a non-cash pretax impairment
charge of approximately $32 million in Fiscal 2011. See the “Critical Accounting Policies—Valuation of
Assets and Asset Impairment” section of Item 7. Management’s Discussion and Analysis of Financial
Condition and Results of Operations as well as Note 2(i), “Significant Accounting Policies—Intangible
Assets,” of Notes to Consolidated Financial Statements included in this Annual Report on Form 10-K for
further details on impairment charges.
(2) Fiscal 2014 includes a non-cash charge of $9 million related to the write-off of unamortized debt issuance
costs and unamortized discounts in connection with the amendment of the Company’s Term Loan. Fiscal
2013 includes fees and expenses of $106 million coupled with a non-cash charge of $16 million related to
the write-off of unamortized debt issuance costs and unamortized premiums in connection with the
extinguishment and replacement of the Company’s 9.5% Notes and Term Loan in conjunction with the
acquisition of the HHI Business. Fiscal 2012 includes a non-cash charge of $2 million related to the write-
off of unamortized debt issuance costs and unamortized premiums in connection with the extinguishment
and refinancing of the Company’s 12% Notes. Fiscal 2011 includes a non-cash charge of $24 million related
to the write-off of unamortized debt issuance costs and unamortized discounts in conjunction with the
refinancing of the Company’s Term Debt facility. Fiscal 2010 includes a non-cash charge of $83 million
related to the write-off of unamortized debt issuance costs and unamortized discounts and premiums in
connection with the extinguishment and refinancing of debt that was completed in conjunction with the
merger with Russell Hobbs.
(3) Fiscal 2014 income tax expense of $59 million includes a non-cash benefit of approximately $116 million
resulting from a decrease in the valuation allowance against certain net deferred taxes. Fiscal 2013 income
tax expense of $27 million includes a non-cash charge of approximately $64 million resulting from an
increase in the valuation allowance against certain net deferred tax assets, net of a $50 million benefit due to
the reversal of $50 million of the valuation allowance in conjunction with the acquisition of the HHI
Business. Fiscal 2012 income tax expense of $60 million includes a non-cash charge of approximately $14
million resulting from an increase in the valuation allowance against certain net deferred tax assets, net of a
$15 million benefit due to the reversal of $15 million of the valuation allowance in conjunction with the
acquisition of FURminator. Fiscal 2011 income tax expense of $92 million includes a non-cash charge of
approximately $65 million resulting from an increase in the valuation allowance against certain net deferred
tax assets. Fiscal 2010 income tax expense of $63 million includes a non-cash charge of approximately $92
million resulting from an increase in the valuation allowance against certain net deferred tax assets.
(4) On November 5, 2008, Spectrum Brands’ board of directors committed to the shutdown of the growing
products portion of the Home and Garden Business, which included the manufacturing and marketing of
fertilizers, enriched soils, mulch and grass seed, following an evaluation of the historical lack of profitability
and the projected input costs and significant working capital demands for the growing product portion of the
Home and Garden Business during Fiscal 2009. During the second quarter of Fiscal 2009, we completed the
shutdown of the growing products portion of the Home and Garden Business and, accordingly, began
reporting the results of operations of this business as discontinued operations. Therefore, the presentation of
all historical continuing operations excludes the growing products portion of the Home and Garden
Business.
(5) See Note 14, “Restructuring and Related Charges,” of Notes to Consolidated Financial Statements included
in this Annual Report on Form 10-K for further discussion.
(6) Diluted average shares outstanding for each of Fiscal 2013, Fiscal 2011 and Fiscal 2010 does not assume the
exercise of common stock equivalents as the impact would be antidilutive due to the losses reported for
those periods
(7) Amounts reflect the results of continuing operations only.
(8) Working capital is defined as current assets less current liabilities.
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