Rayovac 2015 Annual Report Download - page 65

net operating loss deferred tax assets offsetting tax expense on both U.S. pretax income and foreign income not
permanently reinvested; and (iii) deferred income tax expense related to the change in book versus tax basis of
indefinite-lived intangibles, which are amortized for tax purposes but not for book purposes. Additionally for the
year ended September 30, 2015, we recorded a tax benefit of $22.8 million for the reversal of a portion of the
U.S. valuation allowance on deferred tax assets as a result of the AAG acquisition. For the year ended
September 30, 2015, the Company also recognized $23.3 million of deferred tax assets related to its investment
in one of its foreign subsidiaries because that timing difference is expected to reverse in the foreseeable future,
but due to the US valuation allowance against deferred tax assets there is no net tax benefit for this item.
See Note 13, “Income Taxes,” of Notes to Consolidated Financial Statements included elsewhere in this
Annual Report for additional information regarding income taxes.
Fiscal Year Ended September 30, 2014 Compared to Fiscal Year Ended September 30, 2013
Net Sales. Net sales for year ended September 30, 2014 increased $343.5 million, of 8.4%, to
$4,429.1 million from $4,085.6 million for the year ended September 30, 2013. The following tables set forth our
consolidated net sales by segment for the years ended September 30, 2014 and 2013 and the principal
components of the change in net sales from the year ended September 30, 2013 to the year ended September 30,
2014:
2014 2013
(in millions)
Consumer batteries ........................................... $ 957.8 $ 931.6
Small appliances ............................................. 730.8 740.3
Personal care ................................................ 542.1 531.7
Global Batteries & Appliances ...................................... 2,230.7 $2,203.6
Hardware & Home Improvement .................................... 1,166.0 869.6
Global Pet Supplies ............................................... 600.5 621.9
Home and Garden ................................................ 431.9 390.5
Net sales ....................................................... $4,429.1 $4,085.6
Net sales as of September 30, 2013................................... $4,085.6
Increase in hardware and home improvement products ............... 296.4
Increase in home and garden products ............................ 41.4
Increase in consumer batteries .................................. 28.5
Increase in personal care products ............................... 12.1
Decrease in small appliances ................................... (4.5)
Decrease in pet supplies ....................................... (22.7)
Foreign currency impact, net .................................... (7.7)
Net sales as of September 30, 2014................................... $4,429.1
Consumer battery sales increased $26.2 million, or 2.8%, during the year ended September 30, 2014
compared to the previous year. Excluding the negative impact of foreign currency of $2.3 million, global
consumer battery sales increased $28.5 million. The constant currency increase in global consumer battery sales
was attributable to increases in European and Latin American consumer battery sales of $24.4 million and
$9.8 million respectively, partially offset by a decrease in North American consumer battery sales of
$5.7 million. The increases in European and Latin American sales were a result of retailer distribution gains, new
customers and products, successful promotion activities and geographic expansion. The decrease in
North America was primarily driven by the non-recurrence of approximately $10.0 million of flashlight sales in
North America related to storm activity in the first quarter of the year ended September 30, 2013.
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