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28
Energizer Holdings, Inc. 2007 Annual Report
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 intan-
gible 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
2007, 2006 and 2005. Impairment testing of the Company’s report-
ing 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 esti-
mated using a 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, 2007:
North America International Razors and
Battery Battery Blades Total
Balance at October 1, 2006 $24.7 $14.5 $325.3 $364.5
Cumulative translation adjustment –0.9 14.7 15.6
Balance at September 30, 2007 $24.7 $15.4 $340.0 $380.1
The Company has indefinite-lived and amortizable intangibles. The Company had indefinite-lived trademarks and tradenames of $277.9
at September 30, 2007 and $265.8 at September 30, 2006. Changes in indefinite-lived trademarks and tradenames are currency related. The
Company also had pension related intangibles of $4.4 at September 30, 2006.
Total amortizable intangible assets at September 30, 2007 are as follows:
Gross
Carrying Accumulated
Amount Amortization Net
Tradenames $11.7 $ (5.5) $ 6.2
Technology and patents 36.5 (15.6) 20.9
Customer-related 10.4 (5.0) 5.4
Total amortizable intangible assets $58.6 $(26.1) $32.5
Amortization expense for intangible assets totaled $5.9 for the current year. Estimated amortization expense for amortized intangible
assets for the years ended September 30, 2008 through 2010 is approximately $5.6, and $5.1 for the years ended September 30, 2011
and 2012.
Notes to Consolidated Financial Statements
(Dollars in millions, except per share and percentage data)