SPECTRUM BRANDS, INC. AND SUBSIDIARIES

Condensed Consolidating Statement of Financial Position

March 31, 2013

(Unaudited)

(Amounts in thousands)



	Parent			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Eliminations			Consolidated Total
ASSETS
Current assets:
Cash and cash equivalents	$	1,044		$	3,605		$	72,739		$	—		$	77,388
Receivables:
Trade accounts receivables, net of allowances	42,264			103,887			333,848			—			479,999
Intercompany receivables	298,023			942,217			164,920			(1,402,332		)	2,828
Other	2,482			—			47,153			—			49,635
Inventories	97,238			218,093			398,951			(8,873		)	705,409
Deferred income taxes	(1,699		)	24,280			(1,791		)	2,262			23,052
Prepaid expenses and other	118,915			9,630			29,952			1,467			159,964
Total current assets	558,267			1,301,712			1,045,772			(1,407,476		)	1,498,275
Property, plant and equipment, net	66,352			46,658			203,302			—			316,312
Long-term intercompany receivables	106,874			84,530			32,042			(223,446		)	—
Deferred charges and other	11,247			1,954			16,123			—			29,324
Goodwill	67,722			438,864			927,381			—			1,433,967
Intangible assets, net	509,746			756,384			904,522			—			2,170,652
Debt issuance costs	72,696			—			2,065			—			74,761
Investments in subsidiaries	3,930,636			2,358,179			445			(6,289,260		)	—
Total assets	$	5,323,540		$	4,988,281		$	3,131,652		$	(7,920,182	)	$	5,523,291

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt	$	7,065		$	1,313		$	21,073		$	—		$	29,451
Accounts payable	76,538			63,412			249,639			—			389,589
Intercompany accounts payable	968,306			364,862			(135,962		)	(1,197,206		)	—
Accrued liabilities:
Wages and benefits	9,648			7,499			41,319			—			58,466
Income taxes payable	546			(5		)	27,355			—			27,896
Accrued interest	61,258			—			227			—			61,485
Other	22,323			30,452			81,219			—			133,994
Total current liabilities	1,145,684			467,533			284,870			(1,197,206		)	700,881
Long-term debt, net of current maturities	3,109,559			2,903			116,962			—			3,229,424
Intercompany long-term debt	—			345,460			81,642			(427,102		)	—
Employee benefit obligations, net of current portion	26,450			—			73,138			—			99,588
Deferred income taxes	63,451			241,631			203,937			—			509,019
Other	19,348			118			12,924			—			32,390
Total liabilities	4,364,492			1,057,645			773,473			(1,624,308		)	4,571,302
Shareholders’ equity:
Other capital	1,383,601			3,220,488			2,214,589			(5,442,136		)	1,376,542
Accumulated (deficit) retained earnings	(423,784		)	689,381			118,494			(807,875		)	(423,784		)
Accumulated other comprehensive loss	(50,208		)	(33,406		)	(29,077		)	62,483			(50,208		)
Total shareholders’ equity	909,609			3,876,463			2,304,006			(6,187,528		)	902,550
Non-controlling interest	49,439			54,173			54,173			(108,346		)	49,439
Total equity	959,048			3,930,636			2,358,179			(6,295,874		)	951,989
Total liabilities and shareholders’ equity	$	5,323,540		$	4,988,281		$	3,131,652		$	(7,920,182	)	$	5,523,291

SPECTRUM BRANDS, INC. AND SUBSIDIARIES

Condensed Consolidating Statement of Financial Position

September 30, 2012

(Unaudited)

(Amounts in thousands)



	Parent			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Eliminations			Consolidated Total
ASSETS
Current assets:
Cash and cash equivalents	$	6,729		$	13,302		$	137,841		$	—		$	157,872
Receivables:
Trade accounts receivables, net of allowances	51,991			87,382			195,928			—			335,301
Intercompany receivables	242,449			961,195			332,975			(1,534,668		)	1,951
Other	1,705			6,639			29,772			—			38,116
Inventories	87,482			174,254			197,467			(6,570		)	452,633
Deferred income taxes	(5,545		)	23,766			8,276			1,646			28,143
Prepaid expenses and other	16,534			4,721			28,022			(4		)	49,273
Total current assets	401,345			1,271,259			930,281			(1,539,596		)	1,063,289
Property, plant and equipment, net	61,246			47,633			105,138			—			214,017
Long term intercompany receivables	103,358			110,076			73,731			(287,165		)	—
Deferred charges and other	9,094			1,920			16,697			—			27,711
Goodwill	67,722			438,864			187,659			—			694,245
Intangible assets, net	514,968			777,220			422,741			—			1,714,929
Debt issuance costs	39,320			—			—			—			39,320
Investments in subsidiaries	2,678,029			1,120,830			445			(3,799,304		)	—
Total assets	$	3,875,082		$	3,767,802		$	1,736,692		$	(5,626,065	)	$	3,753,511

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt	$	3,939		$	1,667		$	10,808		$	—		$	16,414
Accounts payable	79,522			107,065			138,436			—			325,023
Intercompany accounts payable	993,646			321,210			20,261			(1,335,117		)	—
Accrued liabilities:
Wages and benefits	21,682			18,158			42,279			—			82,119
Income taxes payable	(96		)	64			30,304			—			30,272
Accrued interest	30,427			—			46			—			30,473
Other	20,331			38,366			65,900			—			124,597
Total current liabilities	1,149,451			486,530			308,034			(1,335,117		)	608,898
Long-term debt, net of current maturities	1,622,060			3,259			27,567			—			1,652,886
Long-term intercompany debt	—			376,754			109,966			(486,720		)	—
Employee benefit obligations, net of current portion	24,560			—			65,434			—			89,994
Deferred income taxes	64,727			222,994			89,744			—			377,465
Other	16,225			236			15,117			—			31,578
Total liabilities	2,877,023			1,089,773			615,862			(1,821,837		)	2,760,821
Shareholders’ equity:
Other equity	1,365,315			2,089,602			1,078,928			(3,173,899		)	1,359,946
Accumulated (deficit) retained earnings	(333,821		)	606,196			55,262			(661,458		)	(333,821		)
Accumulated other comprehensive (deficit) income	(33,435		)	(17,769		)	(13,360		)	31,129			(33,435		)
Total shareholders’ equity (deficit)	998,059			2,678,029			1,120,830			(3,804,228		)	992,690
Total liabilities and shareholders’ equity	$	3,875,082		$	3,767,802		$	1,736,692		$	(5,626,065	)	$	3,753,511

SPECTRUM BRANDS, INC. AND SUBSIDIARIES

Condensed Consolidating Statement of Operations

Three Month Period Ended March 31, 2013

(Unaudited)

(Amounts in thousands)



	Parent			Guarantor Subsidiaries			Nonguarantor Subsidiaries		Eliminations			Consolidated Total
Net sales	$	130,097		$	290,154		$	802,963	$	(235,458	)	$	987,756
Cost of goods sold	93,825			196,155			606,450		(234,177		)	662,253
Restructuring and related charges	—			961			1,638		—			2,599
Gross profit	36,272			93,038			194,875		(1,281		)	322,904
Operating expenses:
Selling	18,736			36,857			115,715		(286		)	171,022
General and administrative	19,369			19,951			30,644		11			69,975
Research and development	4,214			2,672			4,974		—			11,860
Acquisition and integration related charges	7,826			1,410			2,763		—			11,999
Restructuring and related charges	111			2,222			2,971		—			5,304
	50,256			63,112			157,067		(275		)	270,160
Operating income	(13,984		)	29,926			37,808		(1,006		)	52,744
Interest expense	54,618			848			4,887		2			60,355
Other (income) expense, net	(38,414		)	(19,320		)	3,686		57,814			3,766
(Loss) income from continuing operations before income taxes	(30,188		)	48,398			29,235		(58,822		)	(11,377		)
Income tax expense	10,335			11,685			7,395		(269		)	29,146
Net (loss) income	(40,523		)	36,713			21,840		(58,553		)	(40,523		)
Less: Net income attributable to non-controlling interest	263			263			263		(526		)	263
Net (loss) income attributable to controlling interest	$	(40,786	)	$	36,450		$	21,577	$	(58,027	)	$	(40,786	)

SPECTRUM BRANDS, INC. AND SUBSIDIARIES

Condensed Consolidating Statement of Comprehensive Income

Three Month Period Ended March 31, 2013

(Unaudited)

(Amounts in thousands)



	Parent			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Eliminations			Consolidated Total
Net (loss) income	$	(40,523	)	$	36,713		$	21,840		$	(58,553	)	$	(40,523	)
Other comprehensive (loss) income, net of tax:
Foreign currency translation	(20,423		)	(20,494		)	(20,515		)	41,009			(20,423		)
Unrealized gain on derivative instruments	832			1,949			1,949			(3,898		)	832
Defined benefit pension loss	(150		)	(150		)	(150		)	300			(150		)
Other comprehensive (loss) income	(19,741		)	(18,695		)	(18,716		)	37,411			(19,741		)
Comprehensive (loss) income	(60,264		)	18,018			3,124			(21,142		)	(60,264		)
Less: Comprehensive income attributable to non-controlling interest	263			263			263			(526		)	263
Comprehensive (loss) income attributable to controlling interest	(60,527		)	17,755			2,861			(20,616		)	(60,527		)

SPECTRUM BRANDS, INC. AND SUBSIDIARIES

Condensed Consolidating Statement of Operations

Three Month Period Ended April 1, 2012

(Unaudited)

(Amounts in thousands)



	Parent			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Eliminations			Consolidated Total
Net sales	$	137,940		$	298,347		$	354,108		$	(44,110	)	$	746,285
Cost of goods sold	101,967			203,319			222,646			(43,338		)	484,594
Restructuring and related charges	—			1,206			454			—			1,660
Gross profit	35,973			93,822			131,008			(772		)	260,031
Operating expenses:
Selling	17,675			41,291			71,185			(239		)	129,912
General and administrative	16,751			21,361			18,222			4			56,338
Research and development	4,609			2,439			910			—			7,958
Acquisition and integration related charges	987			4,275			2,489			—			7,751
Restructuring and related charges	660			1,716			233			—			2,609
	40,682			71,082			93,039			(235		)	204,568
Operating (loss) income	(4,709		)	22,740			37,969			(537		)	55,463
Interest expense	64,582			1,162			3,524			5			69,273
Other (income) expense, net	(37,456		)	(31,849		)	(1,274		)	68,387			(2,192		)
(Loss) income from continuing operations before income taxes	(31,835		)	53,427			35,719			(68,929		)	(11,618		)
Income tax (benefit) expense	(3,460		)	13,448			7,400			(555		)	16,833
Net (loss) income	$	(28,375	)	$	39,979		$	28,319		$	(68,374	)	$	(28,451	)

SPECTRUM BRANDS, INC. AND SUBSIDIARIES

Condensed Consolidating Statement of Comprehensive Income

Three Month Period Ended April 1, 2012

(Unaudited)

(Amounts in thousands)



	Parent			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Eliminations			Consolidated Total
Net (loss) income	$	(28,375	)	$	39,979		$	28,319		$	(68,374	)	$	(28,451	)
Other comprehensive income, net of tax:
Foreign currency translation	18,539			18,599			19,086			(37,685		)	18,539
Unrealized loss on derivative instruments	(1,226		)	(2,297		)	(2,297		)	4,594			(1,226		)
Defined benefit pension gain (loss)	199			4,536			(79		)	(4,457		)	199
Other comprehensive income	17,512			20,838			16,710			(37,548		)	17,512
Comprehensive (loss) income	(10,863		)	60,817			45,029			(105,922		)	(10,939		)

SPECTRUM BRANDS, INC. AND SUBSIDIARIES

Condensed Consolidating Statement of Operations

Six Month Period Ended March 31, 2013

(Unaudited)

(Amounts in thousands)



	Parent			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Eliminations			Consolidated Total
Net sales	$	327,854		$	523,659		$	1,385,136		$	(378,625	)	$	1,858,024
Cost of goods sold	236,795			363,562			1,018,787			(375,865		)	1,243,279
Restructuring and related charges	—			1,579			2,106			—			3,685
Gross profit	91,059			158,518			364,243			(2,760		)	611,060
Operating expenses:
Selling	39,203			69,584			191,453			(457		)	299,783
General and administrative	34,736			36,554			54,711			20			126,021
Research and development	8,524			4,934			6,573			—			20,031
Acquisition and integration related charges	26,805			2,664			3,342			—			32,811
Restructuring and related charges	462			6,339			4,005			—			10,806
	109,730			120,075			260,084			(437		)	489,452
Operating (loss) income	(18,671		)	38,443			104,159			(2,323		)	121,608
Interest expense	113,122			2,150			8,859			4			124,135
Other (income) expense, net	(83,331		)	(67,197		)	4,817			151,039			5,328
(Loss) income from continuing operations before income taxes	(48,462		)	103,490			90,483			(153,366		)	(7,855		)
Income tax (benefit) expense	(848		)	18,440			22,783			(616		)	39,759
Net (loss) income	(47,614		)	85,050			67,700			(152,750		)	(47,614		)
Less: Net loss attributable to non-controlling interest	(255		)	(255		)	(255		)	510			(255		)
Net (loss) income attributable to controlling interest	$	(47,359	)	$	85,305		$	67,955		$	(153,260	)	$	(47,359	)

SPECTRUM BRANDS, INC. AND SUBSIDIARIES

Condensed Consolidating Statement of Comprehensive Income

Six Month Period Ended March 31, 2013

(Unaudited)

(Amounts in thousands)



	Parent			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Eliminations			Consolidated Total
Net (loss) income	$	(47,614	)	$	85,050		$	67,700		$	(152,750	)	$	(47,614	)
Other comprehensive (loss) income, net of tax:
Foreign currency translation	(17,555		)	(17,623		)	(17,704		)	35,327			(17,555		)
Unrealized gain on derivative instruments	1,078			2,282			2,282			(4,564		)	1,078
Defined benefit pension loss	(296		)	(295		)	(295		)	590			(296		)
Other comprehensive (loss) income	(16,773		)	(15,636		)	(15,717		)	31,353			(16,773		)
Comprehensive (loss) income	(64,387		)	69,414			51,983			(121,397		)	(64,387		)
Less: Comprehensive loss attributable to non-controlling interest	(255		)	(255		)	(255		)	510			(255		)
Comprehensive (loss) income attributable to controlling interest	(64,132		)	69,669			52,238			(121,907		)	(64,132		)

SPECTRUM BRANDS, INC. AND SUBSIDIARIES

Condensed Consolidating Statement of Operations

Six Month Period Ended April 1, 2012

(Unaudited)

(Amounts in thousands)



	Parent			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Eliminations			Consolidated Total
Net sales	$	339,938		$	553,892		$	785,565		$	(84,339	)	$	1,595,056
Cost of goods sold	245,005			394,329			488,195			(82,795		)	1,044,734
Restructuring and related charges	—			2,791			3,474			—			6,265
Gross profit	94,933			156,772			293,896			(1,544		)	544,057
Operating expenses:
Selling	37,755			75,634			148,753			(471		)	261,671
General and administrative	31,191			37,447			38,125			4			106,767
Research and development	8,600			4,699			1,894			—			15,193
Acquisition and integration related charges	6,309			5,928			3,114			—			15,351
Restructuring and related charges	1,456			3,161			1,112			—			5,729
	85,311			126,869			192,998			(467		)	404,711
Operating income	9,622			29,903			100,898			(1,077		)	139,346
Interest expense	101,053			2,359			7,070			1			110,483
Other (income) expense, net	(84,981		)	(69,672		)	(45		)	154,699			1
(Loss) income from continuing operations before income taxes	(6,450		)	97,216			93,873			(155,777		)	28,862
Income tax expense	8,031			16,185			20,242			(315		)	44,143
Net (loss) income	$	(14,481	)	$	81,031		$	73,631		$	(155,462	)	$	(15,281	)

SPECTRUM BRANDS, INC. AND SUBSIDIARIES

Condensed Consolidating Statement of Comprehensive Income

Six Month Period Ended April 1, 2012

(Unaudited)

(Amounts in thousands)



	Parent			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Eliminations			Consolidated Total
Net (loss) income	$	(14,481	)	$	81,031		$	73,631		$	(155,462	)	$	(15,281	)
Other comprehensive income, net of tax:
Foreign currency translation	3,610			3,895			4,672			(8,567		)	3,610
Unrealized gain (loss) on derivative instruments	895			(503		)	(503		)	1,006			895
Defined benefit pension gain	502			4,839			223			(5,062		)	502
Other comprehensive income	5,007			8,231			4,392			(12,623		)	5,007
Comprehensive (loss) income	(9,474		)	89,262			78,023			(168,085		)	(10,274		)

SPECTRUM BRANDS, INC. AND SUBSIDIARIES

Condensed Consolidating Statement of Cash Flows

Six Month Period Ended March 31, 2013

(Unaudited)

(Amounts in thousands)



	Parent			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Eliminations			Consolidated Total
Net cash (used) provided by operating activities	$	(366,560	)	$	217,161		$	46,214		$	(94,634	)	$	(197,819	)
Cash flows from investing activities:
Purchases of property, plant and equipment	(9,442		)	(3,542		)	(7,687		)	—			(20,671		)
Acquisition of Shaser, net of cash acquired	—			—			(23,919		)	—			(23,919		)
Acquisition of the HHI Business, net of cash acquired	—			(1,266,120		)	—			—			(1,266,120		)
Escrow payment - TLM Taiwan acquisition	(100,000		)	—			—			—			(100,000		)
Other investing activities	3			(7		)	36			—			32
Net cash used by investing activities	(109,439		)	(1,269,669		)	(31,570		)	—			(1,410,678		)
Cash flows from financing activities:
Proceeds from issuance of Term Loan	700,000			—			92,000			—			792,000
Proceeds from issuance of 6.375% Notes	520,000			—			—			—			520,000
Proceeds from issuance of 6.625% Notes	570,000			—			—			—			570,000
Payment of senior credit facilities, excluding ABL revolving credit facility	(372,172		)	—			—			—			(372,172		)
Debt issuance costs	(42,027		)	—			(2,136		)	—			(44,163		)
Other debt financing, net	—			—			4,125			—			4,125
Reduction of other debt	—			—			(1,486		)	—			(1,486		)
ABL revolving credit facility, net	76,500			—			—			—			76,500
Capital contribution from parent	28,562			—			—			—			28,562
Cash dividends paid to parent	(42,604		)	—			—			—			(42,604		)
Advances related to intercompany transactions	(967,945		)	1,042,811			(169,500		)	94,634			—
Net cash provided (used) by financing activities	470,314			1,042,811			(76,997		)	94,634			1,530,762
Effect of exchange rate changes on cash and cash equivalents due to Venezuela devaluation	—			—			(1,836		)	—			(1,836		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(913		)	—			(913		)
Net (decrease) increase in cash and cash equivalents	(5,685		)	(9,697		)	(65,102		)	—			(80,484		)
Cash and cash equivalents, beginning of period	6,729			13,302			137,841			—			157,872
Cash and cash equivalents, end of period	$	1,044		$	3,605		$	72,739		$	—		$	77,388

SPECTRUM BRANDS, INC. AND SUBSIDIARIES

Condensed Consolidating Statement of Cash Flows

Six Month Period Ended April 1, 2012

(Unaudited)

(Amounts in thousands)



	Parent			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Eliminations			Consolidated Total
Net cash (used) provided by operating activities	(27,616		)	236,366			53,143			(416,697		)	(154,804		)
Cash flows from investing activities:
Purchases of property, plant and equipment	(6,982		)	(5,597		)	(6,011		)	—			(18,590		)
Acquisition of Black Flag	—			(43,750		)	—			—			(43,750		)
Acquisition of FURminator, net of cash	—			(139,390		)	—			—			(139,390		)
Other investing activities	—			(111		)	(1,852		)	—			(1,963		)
Net cash used by investing activities	(6,982		)	(188,848		)	(7,863		)	—			(203,693		)
Cash flows from financing activities:
Proceeds from 6.75% Notes	300,000			—			—			—			300,000
Payment of 12% Notes, including tender and call premium	(270,431		)	—			—			—			(270,431		)
Proceeds from new 9.5% Notes, including premium	217,000			—			—			—			217,000
Payment of senior credit facilities, excluding ABL revolving credit facility	(2,727		)	—			—			—			(2,727		)
Debt issuance costs	(9,941		)	—			—			—			(9,941		)
Other debt financing, net	—			—			11,866			—			11,866
Reduction of other debt	(25,000		)	—			(1,371		)	—			(26,371		)
ABL revolving credit facility, net	50,000			—			—			—			50,000
Other financing activities	—			(954		)	—			—			(954		)
Proceeds from (advances related to) intercompany transactions	(223,888		)	(53,037		)	(139,772		)	416,697			—
Net cash provided (used) by financing activities	35,013			(53,991		)	(129,277		)	416,697			268,442
Effect of exchange rate changes on cash and cash equivalents	—			—			(671		)	—			(671		)
Net (decrease) increase in cash and cash equivalents	415			(6,473		)	(84,668		)	—			(90,726		)
Cash and cash equivalents, beginning of period	49			8,789			133,576			—			142,414
Cash and cash equivalents, end of period	$	464		$	2,316		$	48,908		$	—		$	51,688