Energizer 2006 Annual Report Download - page 30

Download and view the complete annual report

Please find page 30 of the 2006 Energizer annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 47

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47

ENERGIZER HOLDINGS, INC.
Notes to Consolidated Financial Statements
(Dollars in millions, except per share and percentage data)
28 ENR 2006 ANNUAL REPORT
North America International Razors and
Battery Battery Blades Total
Balance at October 1, 2005 $ 24.7 $ 14.1 $ 320.1 $ 358.9
Cumulative translation adjustment –0.4 5.2 5.6
Balance at September 30, 2006 $ 24.7 $ 14.5 $ 325.3 $ 364.5
The Company has indefinite-lived and amortizable intangibles. The Company had indefinite-lived trademarks and tradenames of $265.8
at September 30, 2006 and $261.9 at September 30, 2005. Changes in indefinite-lived trademarks and tradenames are currency related.
The Company also had pension related intangibles of $4.4 at September 30, 2006 and $3.6 at September 30, 2005.
Total amortizable intangible assets at September 30, 2006 are as follows:
Gross
Carrying Accumulated
Amount Amortization Net
Tradenames $12.2 $ (4.4) $ 7.8
Technology and patents 35.5 (11.8) 23.7
Customer-related 8.1 (3.1) 5.0
Total amortizable intangible assets $ 55.8 $ (19.3) $ 36.5
Amortization expense for intangible assets totaled $5.6 for the current year. Estimated amortization expense for amortized intangible assets for
the years ended September 30, 2007 and 2008 is approximately $5.4, and $5.0 for the years ended September 30, 2009 through 2011.
3. Goodwill and Intangible Assets and Amortization
The Company has allocated goodwill and other intangible assets to
individual countries or areas for battery businesses. The battery
business intangible assets are comprised of trademarks primarily
related to the Energizer brand. These intangible assets are deemed
indefinite-lived.
The Company allocated goodwill, indefinite-lived trademarks and
other intangible assets to the SWS business at acquisition. The other
intangible assets include trademarks, tradenames, technology, patents
and customer-related assets with lives ranging from five to 15 years.
Goodwill and intangible assets deemed to have an indefinite life are
not amortized, but reviewed annually for impairment of value. The
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 2006, 2005 and 2004.
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 adjustments or impairments were deemed necessary.
The following table represents the carrying amount of goodwill by
segment at September 30, 2006: