Energizer 2011 Annual Report Download - page 70

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ENERGIZER HOLDINGS, INC.
(Dollars in millions, except per share and percentage data)
goodwill. We utilized a discounted cash flow model using an excess earnings valuation technique to test the Playtex
trademarks for impairment. Key assumptions included a discount rate of 9% and a terminal growth rate of 3%. While no
impairment was indicated during this testing, the indicated fair value for two trademarks, Playtex and Wet Ones, were relatively
close to the carrying value at 114% of the carrying value (approximately $650) for the Playtex trademark and 107% of the
carrying value (approximately $200) for the Wet Ones trademark.
The following table represents the carrying amount of goodwill by segment at September 30, 2011:
Balance at October 1, 2010
ASR acquisition
Cumulative translation adjustment
Balance at September 30, 2011
Household
Products
$ 37.2
—
(0.3)
$ 36.9
Personal
Care
$ 1,279.2
161.9
(2.7)
$ 1,438.4
Total
$ 1,316.4
161.9
(3.0)
$ 1,475.3
The Company had indefinite-lived trademarks and tradenames of $1,703.6 at September 30, 2011 and $1,704.4 at September
30, 2010. Changes in indefinite-lived trademarks and tradenames are due primarily to changes in foreign currency translation.
Total amortizable intangible assets at September 30, 2011are as follows:
Tradenames / Brands
Technology and patents
Customer-related / Other
Total amortizable intangible assets
Gross
Carrying
Amount
$ 18.9
76.0
165.3
$ 260.2
Accumulated
Amortization
$ 10.2
39.4
36.0
$ 85.6
Net
$ 8.7
36.6
129.3
$ 174.6
Amortizable intangible assets, with a weighted average remaining life of approximately thirteen years, are amortized on a
straight-line basis over expected lives of 3 years to 20 years.
Amortization expense for intangible assets totaled $21.6 for the current year. Estimated amortization expense for amortizable
intangible assets for the years ending September 30, 2012, 2013, 2014, and 2015, is approximately $22.6, $20.4, $17.4, and
$15.1, respectively, $15.1 and $14.8 for the years ending September 30, 2016 and 2017 and $9.9 thereafter.
(7) Income Taxes
The provisions for income taxes consisted of the following for the years ended September 30:
Currently payable:
United States - Federal
State
Foreign
Total current
Deferred:
United States - Federal
State
Foreign
Total deferred
Provision for income taxes
2011
$ 34.0
4.6
79.8
118.4
36.4
2.4
(12.4)
26.4
$ 144.8
2010
$ 67.0
8.4
66.3
141.7
(7.8)
(0.3)
6.8
(1.3)
$ 140.4
2009
$ 91.7
8.6
55.4
155.7
(12.5)
(0.5)
4.8
(8.2)
$ 147.5
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