Energizer 2004 Annual Report Download - page 33

ENR 2004 Annual Report 31
During 2003, the Company recorded goodwill related to the SWS acquisition of $281.6. The following table represents the carrying amount of good-
will by segment at September 30, 2004:
The amount of intangible assets acquired from the SWS acquisition is as
follows:
Wtd-Average
Amount Amortization
Acquired Period (in years)
To be amortized:
Tradenames $ 10.5 9.8
Technology and patents 34.3 11.1
Customer-related 6.4 10.0
51.2
Indefinite-lived:
Tradenames 182.2
Total acquired intangible assets $ 233.4
Total amortizable intangible assets at September 30, 2004 are as follows:
Gross Accumulated
Carrying Amount Amortization Net
Tradenames $ 12.0 $ (1.7) $ 10.3
Technology and patents 35.3 (5.0) 30.3
Customer-related 6.6 (2.1) 4.5
Total amortizable intangible assets $ 53.9 $ (8.8) $ 45.1
The estimated amortization expense for amortizable intangible assets is
$5.8 for each of the years ended September 30, 2005 through 2009.
North America International Razors and
Battery Battery Blades Total
Balance at October 1, 2003 $ 24.7 $ 13.3 $ 292.2 $ 330.2
Adjustment to SWS opening balance sheet (Note 3) – – 19.3 19.3
Cumulative translation adjustment – 0.7 11.0 11.7
Balance at September 30, 2004 $ 24.7 $ 14.0 $ 322.5 $ 361.2
9. I ncome Taxes
The provisions for income taxes consisted of the following for the years
ended September 30:
2004 2003 2002
Currently payable:
United States – Federal $ 62.6 $ 48.5 $ 52.5
State 5.1 7.4 8.4
Foreign 37.3 36.5 24.4
Total current 105.0 92.4 85.3
Deferred:
United States – Federal (2.6) (5.2) 7.7
State (0.2) (0.5) 1.2
Foreign (11.6) (19.0) (2.2)
Total deferred (14.4) (24.7) 6.7
Provision for income taxes $ 90.6 $ 67.7 $ 92.0
The source of pre-tax earnings was:
2004 2003 2002
United States $ 166.4 $ 141.9 $ 191.3
Foreign 191.6 95.7 87.1
Pre-tax earnings $ 358.0 $ 237.6 $ 278.4
A reconciliation of income taxes with the amounts computed at the statutory federal rate follows:
2004 2003 2002
Computed tax at federal statutory rate $ 125.3 35.0% $ 83.2 35.0% $ 97.4 35.0%
State income taxes, net of federal tax benefit 3.2 0.9 4.5 1.9 6.2 2.2
Foreign tax less than the domestic rate (26.1) (7.3) (5.0) (2.1) (5.6) (2.0)
Foreign benefits recognized related to prior years’ losses (16.2) (4.5) (12.2) (5.1) (6.7) (2.4)
Adjustments to prior year tax accruals (8.5) (2.4) (7.0) (3.0) (5.1) (1.8)
Taxes on repatriation of foreign earnings 10.7 3.0 1.7 0.8 2.5 0.9
Other, net 2.2 0.6 2.5 1.0 3.3 1.2
Total $ 90.6 25.3% $ 67.7 28.5% $ 92.0 33.1%