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Other Required Disclosures | 3 Months Ended
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Jan. 01, 2012
Other Required Disclosures [Abstract] |
Other Required Disclosures | (16) Other Required Disclosures Recent Accounting Pronouncements Not Yet Adopted Fair Value Measurement In May 2011, the Financial Accounting Standards Board (“FASB”) issued amended accounting guidance to achieve a consistent definition of and common requirements for measurement of and disclosure concerning fair value between US GAAP and International Financial Reporting Standards. This amended guidance is effective for the Company beginning in the second quarter of its current fiscal year. The Company is currently evaluating the impact of this new accounting guidance on its consolidated financial statements. Presentation of Comprehensive Income In June 2011, the FASB issued Accounting Standards Update 2011-05, “Comprehensive Income (Topic 220): Presentation of Comprehensive Income,” which amends current comprehensive income guidance. This accounting update eliminates the option to present the components of other comprehensive income as part of the statement of shareholders’ equity. Instead, comprehensive income must be reported in either a single continuous statement of comprehensive income which contains two sections, net income and other comprehensive income, or in two separate but consecutive statements. This guidance will be effective for the Company beginning in fiscal year 2013. The Company does not expect the guidance to impact the Company’s financial statements, as it only requires a change in the format of presentation. Testing for Goodwill Impairment In September 2011, the FASB issued new accounting guidance intended to simplify how an entity tests goodwill for impairment. The guidance will allow an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. An entity no longer will be required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. This accounting guidance is effective for the Company for the annual and any interim goodwill impairment tests performed beginning in fiscal year 2013. Early adoption is permitted. The Company does not expect the adoption of this guidance to have a significant impact on its consolidated financial statements. Offsetting Assets and Liabilities In December 2011, the FASB issued amended disclosure requirements for offsetting financial assets and financial liabilities to allow investors to better compare financial statements prepared under US GAAP with financial statements prepared under International Financial Reporting Standards. The new standards are effective for the Company beginning in the first quarter of its fiscal year ending September 30, 2014. The Company is currently evaluating the impact of this new accounting guidance on the disclosures included in its consolidated financial statements. Receivables and Concentrations of Credit Risk “Receivables, net” in the accompanying Condensed Consolidated Balance Sheets consist of the following:
|  | January 1, 2012 |  |  | September 30, 2011 |
Trade accounts receivable |  | $ | 378,555 |  |  | $ | 370,733 |
Other receivables |  |  | 45,534 |  |  |  | 37,678 |
|  |  | 424,089 |  |  |  | 408,411 |
Less: Allowance for doubtful trade accounts receivable |  |  | 16,302 |  |  |  | 14,128 |
|  | $ | 407,787 |  |  | $ | 394,283 |
Trade receivables subject Spectrum Brands to credit risk. Trade accounts receivable are carried at net realizable value. Spectrum Brands extends credit to its customers based upon an evaluation of the customer’s financial condition and credit history, and generally does not require collateral. Spectrum Brands monitors its customers’ credit and financial condition based on changing economic conditions and makes adjustments to credit policies as required. Provision for losses on uncollectible trade receivables are determined based on ongoing evaluations of Spectrum Brands’ receivables, principally on the basis of historical collection experience and evaluations of the risks of nonpayment for a given customer. Spectrum Brands has a broad range of customers including many large retail outlet chains, one of which accounts for a significant percentage of its sales volume. This customer represented approximately 24% of Spectrum Brands’ net sales during both the three month periods ended January 1, 2012 and January 2, 2011. This customer also represented approximately 13% and 16% of the Spectrum Brands’ trade accounts receivable, net at January 1, 2012 and September 30, 2011, respectively. Approximately 49% of Spectrum Brands’ net sales during both the three month periods ended January 1, 2012, and January 2, 2011, occurred outside the United States. These sales and related receivables are subject to varying degrees of credit, currency, political and economic risk. Spectrum Brands monitors these risks and makes appropriate provisions for collectability based on an assessment of the risks present. Inventories Inventories of Spectrum Brands, which are stated at the lower of cost (using the first-in, first-out method) or market, consist of the following:
|  | January 1, 2012 |  |  | September 30, 2011 |
Raw materials |  | $ | 73,224 |  |  | $ | 59,928 |
Work in process |  |  | 25,336 |  |  |  | 25,465 |
Finished goods |  |  | 383,732 |  |  |  | 349,237 |
|  | $ | 482,292 |  |  | $ | 434,630 |
Shipping and Handling Costs Spectrum Brands incurred shipping and handling costs of $50,319 and $51,270 for the three month periods ended January 1, 2012 and January 2, 2011, respectively. These costs are included in “Selling, general and administrative” expenses in the accompanying Condensed Consolidated Statements of Operations. Shipping and handling costs include costs incurred with third-party carriers to transport products to customers as well as salaries and overhead costs related to activities to prepare Spectrum Brands’ products for shipment from its distribution facilities. Properties Properties, net consist of the following:
|  | January 1, 2012 |  |  | September 30, 2011 |
Total properties, at cost |  | $ | 317,369 |  |  | $ | 314,281 |
Less accumulated depreciation |  |  | 112,913 |  |  |  | 107,482 |
|  | $ | 204,456 |  |  | $ | 206,799 |

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