Energizer 2005 Annual Report Download - page 31

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Company monitors changing business conditions, which may
indicate that the remaining useful life of goodwill and other intangible
assets may warrant revision or carrying amounts may require
adjustment. As part of its business planning cycle, the Company
performed its annual impairment test in the fourth quarter of fiscal
2005, 2004 and 2003. Separate impairment testing of the Company’s
reporting units was performed at the area level (North America,
Europe, Asia Pacific and Latin America) within each reporting
segment of the Company. The fair value of each area reporting unit
was estimated using the discounted cash flow method. No adjust-
ments or impairments were deemed necessary.
The following table represents the carrying amount of goodwill by
segment at September 30, 2005:
North America International Razors and
Battery Battery Blades Total
Balance at October 1, 2004 $24.7 $ 14.0 $ 322.5 $ 361.2
Cumulative translation adjustment – 0.1 (2.4) (2.3)
Balance at September 30, 2005 $24.7 $ 14.1 $ 320.1 $ 358.9
The Company has indefinite-lived and amortizable intangibles. The Company had indefinite-lived trademarks and tradenames of $261.9 at
September 30, 2005 and $263.1 at September 30, 2004. The Company also had pension related intangibles of $3.6 at September 30, 2005.
Changes in indefinite-lived trademarks and tradenames are currency related.
Total amortizable intangible assets at September 30, 2005 areas follows:
Gross
Carrying Accumulated
Amount Amortization Net
Tradenames $11.9 $ (3.1) $ 8.8
Technology and patents 35.1 (8.3) 26.8
Customer-related 6.2 (2.2) 4.0
Total amortizable intangible assets $ 53.2 $ (13.6) $ 39.6
Estimated amortization expense for amortized intangible assets for the years ended September 30, 2006 through 2008 is approximately $5.0
and $4.6 for the years ended September 30, 2009 through 2010.
ENR 2005 Annual Report 29
7. Income Taxes
The provisions for income taxes consisted of the following for the
years ended September 30:
2005 2004 2003
Currently payable:
United States – Federal $ 71.4 $62.6 $ 48.5
State 5.3 5.1 7.4
Foreign 46.9 37.3 36.5
Total current 123.6 105.0 92.4
Deferred:
United States – Federal (10.2) (2.6) (5.2)
State (0.5) (0.2) (0.5)
Foreign (1.6) (11.6) (19.0)
Total deferred (12.3) (14.4) (24.7)
Provision for income taxes $111.3 $90.6 $67.7
The source of pre-tax earnings was:
2005 2004 2003
United States $159.6 $166.4 $141.9
Foreign 238.1 191.6 95.7
Pre-tax earnings $397.7 $358.0 $ 237.6